Standard Life Investments’ global absolute return strategies range has been hit by outflows again as the manager attempts to stem the flow of assets from the product.
Standard Life’s half year results today reveal that GARS, which targets cash plus 5 per cent over three years with minimum risk, saw £5.6bn in net outflows over the first six months of the year. £2.8bn came in the first quarter.
The provider said this resulted from “a period of weak short-term investment performance” last year, but that short term investment performance has bounced back so far in 2017.
GARS returned 4.4 per cent in the year to the end of June, the results show.
Overall, SLI’s assets under management decreased by 1 per cent to £275.2bn.
“Net outflows from our GARS products and the run-off of our mature books, were both largely offset by positive market movements,” SLI noted.
Net outflows of £7.4bn across SLI were greater than some analysts had expected, through many predictions were for more than £5bn to leave the books.
Speaking to Money Marketing earlier this year, Aberdeen Asset Management – which is due to complete its merger with Standard Life next week – global head of distribution Campbell Fleming said that the combined firm would benefit from bringing together SLI’s Gars with other multi-asset strategies.