Asset classes
Global Tactical Asset Allocation
Global tactical asset allocation (GTAA) is a skill-based strategy capable of delivering a lowly-correlated source of absolute return to your portfolio. Value is created through the exploitation of short-term pricing inefficiencies via a series of long and short positions across global equity, bond and currency markets.
Why GTAA?
GTAA offers investors a flexible and dynamic building block capable of producing relatively consistent returns that have low or negative correlations with traditional sources of investment return.
- Diversification: low correlation with traditional asset classes makes GTAA a diversifying source of return capable of improving a portfolio’s risk-return characteristics
- Absolute return: by taking short and long positions across all the world’s markets, GTAA can find value-generating opportunities regardless of market direction
- Capital efficiency: natural leverage gained from using derivatives means a relatively small allocation to GTAA can create significant upside and free up cash for use elsewhere
- Portfolio overlay: applying GTAA as an overlay allows additional return to be sought without altering asset allocation
Why Aviva Investors?
- Success: 10 years of strong, consistent performance of our GTAA overlays and pooled funds indentifies ours as a genuine alpha-generating, absolute-return strategy
- Experience, stability and scale: our key decision makers boast over 50 years of combined experience, with lead managers who’ve worked together for the past nine years and backed by a 15-strong team
- Unique process: We include a qualitative approach to building economic scenarios and portfolio construction that accounts for alternative economic scenarios in order to deliver consistent long-term performance
- Independent risk discipline: An independent risk team monitors VaR daily as well as producing daily stress test analysis, scenario analysis and contribution to risk analysis
- Range of solutions: invest through a choice of UCITS III funds, a hedge fund or via segregated overlay
