Standard Life plans aggressive GARS for institutional market

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Standard Life Investments plans to launch a more aggressive version of its Global Absolute Return Strategies fund, targeting a higher annualised return.

The new fund, which is believed to be launching at the end of the summer, will aim for an annualised target return of UK six-month Libor plus 750 basis points. The existing £17.8bn Standard Life Investments GARS fund targets 500 basis points over six-month Libor.

The coming fund is expected to be aimed at the institutional market, with no current plans to target retail investors.

SLI has been mulling the idea for at least a year, with an analyst presentation dated July 2012 telling investors there is “opportunity for ‘higher return + higher volatility’ version” of the popular GARS fund. It also also brought up the new fund with wealth managers in recent months.

The plans are unlikely to be disrupted by the recent departure of multi-asset investment head Euan Munro, who left the firm last week to become the chief executive of Aviva Investors. Guy Stern was then appointed as the new head of the multi-asset investment team.

A statement by the asset management house says: “Standard Life Investments has a broad innovation agenda across all asset classes and is continually carrying out research and product development targeted at meeting a wide range of client needs.

“We currently have a number of projects in the pipeline and likely to launch, subject to regulatory approval, over the next couple of quarters. There are no delays to our current programme.”

Standard Life Investments GARS’ cumulative performance to 23 July 2013

 
Standard Life Investments GARS -0.13% 3.58% 6.43% 16.13% 47.89%
1.40% 2.52% 6.32% 11.06% 17.03%
-1.50% 1.03% 0.10% 4.56% 26.36%
  52 / 65 15 / 63 26 / 62 14 / 48 4 / 19
4 1 2 2 1

Source: FE Analytics