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SLI launches high-octane version of Gars with 7.5% target
by Dylan Lobo on Mar 17, 2014 at 09:33
Standard Life Investments (SLI) has launched a high-octane version of its Global Absolute Return Strategies (Gars) fund.
As revealed by Wealth Manager last year, SLI was building the fund under the moniker Project 750 to reflect the strategy's potential return.
After the successful testing, SLI has launched the fund for institutional investors in December with international support totalling €110 million (£91.9 million). Clients include pension funds and discretionary wealth managers from three countries.
Called Global Focused Strategies (GFS), the absolute return fund aims to deliver a return of cash +7.5% with a volatility of between 6% to 12%. David Sol (pictured left) and Neil Richardson (right) serve as co-lead managers on the fund.
'Operating with broad investment freedom within rigourous risk controls, GFS invests actively within and between all major asset classes and across the corporate capital structure,' Guy Stern (pictured), SLI head of multi-asset and macro investing said.
'It can also make extensive use of derivatives to implement positions and mitigate risk. This allows GFS to access an exceptionally diverse array of strategies, so it can generate positive returns irrespective of the economic environment.'
The fund is registered as a Luxembourg Sicav with share classes in multiple currencies. It is priced daily with no notice-period and has a flat fee of 1.2% per annum, with no performance-related component.
'GFS is an advanced fusion of our macro and micro capabilities, underpinned by our team-based approach and multi-asset risk and portfolio management expertise,' Stern said.
'It benefits directly from the experience and insights of our equity, fixed income, real estate and money market specialists. This allows GFS to fully exploit our investment views to enhance portfolio efficiency.'
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