Friday, March 15, 2013

Standard Life Investments' Global Absolute Return Strategies Now Offered to Accredited Investors in Canada


A track record for delivering long-term positive absolute returns with lower volatility than a traditional long-term global equity portfolio.

Global asset manager Standard Life Investments and Standard Life Mutual Funds announced today that they will offer the award-winning Standard Life Investments Global Absolute Returns Strategies (GARS) Private Pooled Fund to Canadian investors who qualify as accredited investors. These investors may be able to benefit from the global expertise of the Standard Life Investments multi-asset investing team in this area and have the opportunity to achieve long-term positive absolute returns with lower volatility than a traditional long-term global equity portfolio.

Roger Renaud , President of Standard Life Investments Inc. in Montreal said: "The absolute return strategy aims to produce consistent, positive investment returns in all market conditions while managing risk levels. What makes GARS truly unique is that it is global and has access to a wide variety of asset classes in a wide array of markets. GARS has been highly successful and has provided investors in the U.K. and worldwide with competitive returns and managed risk. That same opportunity is now available to Canadian investors who qualify as accredited investors."

Standard Life Investments originally launched GARS in the U.K. in 2006 as an innovative solution for Standard Life Group's own staff pension plan. The success was compelling enough to capture the attention of institutional investors in Europe , Asia, Australia , the U.S., and Canada . GARS is now one of the world's largest absolute return funds, with more than $30 billion under management.

During the financial crisis of 2008, while global equity markets fell over 17.4%, the GARS fund in the U.K. fell by only 3.7%. Since the inception of the fund, it has produced a gross annualized return of 8.6% with a volatility of only 5.9%. Over the same period global equities, denoted by the MSCI World Index, returned 5.3% per year with a volatility of 15.4%1.

GARS seeks to deliver consistent, positive returns for investors in all market conditions. To do so, the 27-strong GARS multi-asset team invests in a wide variety of assets such as bonds, real estate and currencies2.  They can also use advanced investment strategies that are not always available to traditional funds, including the use of derivatives to manage risk.

Euan Munro, Global Head of Multi-Asset Investing and Fixed Income at Standard Life Investments said: "The volatility of global equity markets in recent years creates uncertainty among investors about their ability to maintain the long-term value of their portfolios. GARS offers accredited investors the opportunity to reduce the volatility of their portfolios and give the potential of consistent, positive returns. The Standard Life Investments GARS Private Pooled Fund will benefit from the knowledge and experience of our multi-asset investment team, world leaders in absolute return strategies."

Since it was launched in 2006, GARS has won wide recognition in the U.K. asset management industry, including most recently: the Platinum award at the U.K. Portfolio Advisor Fund Awards in 2013; the Absolute Return category at the Investment Week Fund Manager of the Year Awards in 2012; and the Alternative Investment Category at the 100 Club Awards from Investment Advisor in the U.K, also in 2012.

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