Derivatives to Gear A Portfolio

Hi,

I'm just wondering what the above actually means? If I'm running a multi manager fund and part of my mandate states that the underlying managers can't use derivatives to gear the portfolio or for specualtion does this mean that CTA / Managed Futures managers or any sort of volatility / tail risk manager trading options would be eliminated. However, the mandate states that derivatives can be used for risk management purposes. I'm guessing one could argue that a volatility or futures manager could be employed as smooth out risk / volatility in the portfolio.