Morningstar OBSR puts SLI’s GARS funds under review

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Morningstar OBSR has placed both the onshore and offshore versions of Standard Life Investments’ Global Absolute Return Strategies ‘under review’.

With both versions of the £18bn fund previously having a bronze rating with the fund ratings provider, the decision was made after the departure of SLI director of multi-asset and fixed income Euan Munro.

Munro, who established the GARS, left on 19 July to become chief executive officer of Aviva Investors.

SLI head of multi-asset management Guy Stern was appointed Munro’s replacement on the strategy as head of multi-asset and macro investing.

The funds analyst says: “Morningstar OBSR acknowledges the continuity offered by Guy Stern, the experienced head of multi-asset management who has been appointed to SLI’s board as head of multi-asset and macro investing, and the large, broad team that will still provide input into the portfolio’s strategy.

“Nevertheless, Mr Munro was a key architect of the product and Morningstar OBSR has changed the fund’s rating while it reviews the impact of his departure.”

Bestinvest recently opted to stand by its view of GARS and maintain its five star rating of the fund.

Bestinvest managing director Jason Hollands said at the time: “In the view of the depth of resource, team approach and continuity of processes our view on the fund remains unchanged.”