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Gars in their eyes: the challengers coming after the SLI giant
by Eleanor Lawrie on Jul 10, 2014 at 07:15
The launch of Aviva’s Gars-like rival has been eagerly awaited since Euan Munro (pictured) the architect of Gars, joined the firm back in January.
But few could have predicted how ambitious Aviva’s new absolute return strategy would be: three funds in the pipeline, with the aim of raising £10-15 billion, which they say could double the fund house’s profitability in the process.
And Aviva is not the only one hoping for a slice of Standard Life Investments’ (SLI) Global Absolute Return Strategies ’ £20.6 billion market share.
In recent weeks, BlackRock launched a low risk absolute return fund, while last September, Invesco Perpetual launched a challenger fund to SLI with three ex-Gars managers.
As all three multi-strategy absolute return funds compete to generate a positive return, can they succeed in attracting the billions they are targeting?
The juggernaut: Standard Life Investments’ Global Absolute Return Strategies fund
Fund size: £20.6 billion
Three-year return: 17.7% vs 9.4% by Alternative Ucits Multi-Strategy sector average
Five-year return: 44.4% vs 29.6% by sector average
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