Aviva Investors, the UK-based asset management firm, is preparing to introduce its Absolute Tactical Asset Allocation Fund to investors in Australia, according to a report by InvestorDaily.

The fund, to be called Global Tactical Asset Allocation, is designed to generate revenue and long term capital growth through active positions in several asset classes. It will be based in the UK and will be the company's first absolute return fund in the Australian market, the publication said.

In a June 2009 report, head of pensions business development Gerard Hutchings had said that stability among pension investments could be better achieved by getting into GTAA.

"GTAA takes advantage of short-term opportunities, mainly in equity, bond and currency markets. Strategic asset allocation considers the mix of assets that should achieve long-term goals. Tactical asset allocation can enhance returns in the shorter-term without fundamentally changing the strategic mix," he said at the time.

The GTAA model has seen a 9 per cent return in 2008, against an industry benchmark of 6 per cent, the publication added.

The news came with an announcement that the asset manager is reopening its European Property Fund in the UK after it was temporarily suspended due to the global financial crisis. Aviva Investors has gradually recovered over the past months, enabling its fund managers to rise above the losses. The introduction of GTAA to Australia will allow it to further take advantage of Asia's rapid growth.

Aviva Investors is reportedly waiting for Australian research house Van Eyk's rating.