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Project 750: SLI's plan for a high-octane Gars
by Dylan Lobo on Jul 24, 2013 at 12:14
Wealth Manager can reveal Standard Life Investments is set to launch a more aggressive version of its giant Global Absolute Return Strategies (Gars) fund with an annualised target return of 750 basis points.
It is understood the fund will be named Project 750 and will launch at the end of summer, with the departure of multi-asset investment head Euan Munro to Aviva Investors not impacting the schedule.
SLI is believed to have been running a model portfolio for a number of months to test how the strategy will stand up in a range of market conditions.
While the asset manager would not comment on the precise nature of the product, it indicated it was looking at launching a number of new strategies.
‘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,' a spokesperson said.
‘We currently have a number of projects in the pipeline and [are] likely to launch, subject to regulatory approval, over the next couple of quarters. There are no delays to our current programme.’
Gars has been one of the biggest success stories in UK fund management history.
The strategy was originally created by Munro to help Standard Life manage its pension liabilities and its success in doing so prompted the group to repackage the vehicle as an investment fund, which launched in May 2008.
As it gathered momentum investors flocked to the strategy, which has become the UK’s biggest fund with a massive £18 billion in assets under management.
While this has raised concern about liquidity in some quarters, performance has been impressive.
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