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Rapid growth forces fund closures

Barclays Global Investors and Goldman Sachs Asset Management have closed global tactical asset allocation strategies because of worries that their continued growth may hamper performance.

Global tactical asset allocation is a strategy practised across a range of asset classes that uses synthetic instruments, such as swaps and futures. It is unusual for a manager to close a strategy that relies on synthetic instruments, where liquidity is five to 10 times that of underlying cash markets.

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