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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