Global Absolute Return Strategies fund awarded S&P rating
05 December 2008
Leading fund manager, Standard Life Investments today announced that its £720m Global Absolute Return Strategies (GARS) Fund has been awarded an 'A' rating by ratings agency, Standard & Poor's. This means that 20 of the manager's 24 eligible and actively managed funds have now achieved an 'A' rating or above.
Managed by a team of 22 investment professionals, split into three sub-teams - strategic research, risk analysis and multi asset management, the fund is based on Standard Life Investments proven global investment philosophy and process. Opened to retail investors in May 2008, the GARS methodology was originally launched as an institutional offering in June 2006. Despite extensive market volatility and considerable fund growth since its launch, the methodology has produced a gross annualised return of 4.6%1 (Source: Standard Life Investments; 12.06.06 – 31.10.08).
The GARS Fund aims to provide positive investment returns over the longer term in a variety of market conditions and to deliver a target return of LIBOR* +5% per annum over rolling three-year periods. This is similar to the long term return available from investing in equities, however the fund strives to deliver this target with significantly reduced volatility of returns compared to equities.
Aimed primarily at the medium term investor, the GARS Fund is designed to exploit inefficiencies across markets and to maximise risk-adjusted returns from across the globe. It invests in a combination of traditional investments such as equities, bonds and foreign exchange and advanced techniques such as relative value, duration, credit spreads, inflation and volatility strategies.
Tammas McVie, Investment Director – Mutual Funds, Standard Life Investments, said;
"The GARS Fund draws on all of the core strengths deployed by the award-winning3 Multi-Asset Investing team at Standard Life Investments. In doing so, it makes full use of our dynamic asset allocation, our stock picking expertise, our derivatives management and execution, risk management expertise and quantitative discipline.
"In my view, the level of expertise, commitment and enthusiasm behind GARS and the fact that it has remained resilient through the exceptional market circumstances it has had to contend with, fully endorses Standard & Poor's view that this fund is worthy of such esteemed public recognition. As a team, we are delighted with the award and on a personal level, I feel confident that those investing in the fund and those working so hard to achieve this recognition can look forward to yet greater things to come."
* London Interbank Offer Rate. It is important to note that this fund is not a guaranteed or capital protected product. This means the value of your investment can go down as well as up.
