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GTR v GARs: Invesco Perpetual unveils multi-asset fund for ex-SLI trio
by Dylan Lobo on Sep 09, 2013 at 00:01
Competition in one of the UK’s fastest of growing sectors has intensified with Invesco Perpetual launching its eagerly anticipated multi-asset fund.
The Invesco Perpetual Global Targeted Returns (GTR) fund is managed by multi-asset head David Millar (pictured), Dave Jubb and Richard Batty and sits in the IMA's Targeted Absolute Return sector.
The trio joined the firm earlier this year from Standard Life Investments (SLI) where they played key roles in the management of the popular Standard Life Global Absolute Return Strategies (Gars) fund, which has amassed around £18 billion in assets under since its launch in May 2008.
The three will be supported by fellow ex-SLI colleague Gwylim Satchell, who takes up the post of risk manager after a spell managing a range of liability-driven investment funds at his previous team.
Georgina Taylor completes the team. She joins as product director from State Street Global Markets, where she headed its equity strategy.
While the market sees the fund as a natural competitor to Gars, Millar is reluctant to pitch the two against each other.
‘There is a certain alignment [between GTR and Gars] and its a philosophy I appreciate,' Millar told Wealth Manager, 'but I don’t want to compare the two.’
Central to GTR’s strategy is the dispensation of asset classes and focusing instead on a three step approach. This starts with the selection and of approval of investment ideas from across asset classes and geographies, followed by the combination of these ideas into a portfolio using a robust risk framework. The final step is the implementation through the firm’s global trading desk.
The fund has 22 ideas at launch with a basic premise being that each one will deliver a positive return over a three-year period to help the fund beat its target of topping its Libor three-month GBP benchmark by 5% on a three-year rolling basis. It aims to achieve this at less than half the global equity volatility of the MSCI World Index.
‘I’m a great believer in an unconstrained research agenda that allows you to build a diversified portfolio,' Millar said. ‘For absolute return to be effective it’s about targeting equity like returns for half the risk.’
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