Financial Jargon Buster Dictionary
This glossary is provided for information only and is not regulated by the Financial Services Authority.
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Tactical Asset Allocation Overlay
A portfolio management technique, managed on an overlay basis, which gains exposure to the same asset classes as the total fund, through derivatives rather than physical securities, with the aim of taking advantage of short-term movements and opportunities in the markets. Use of a tactical asset allocation overlay manager can allow for a fund to take advantage of that manager's asset allocation skills without them necessarily being responsible for ongoing management of the underlying assets. See also Overlay Manager.
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