Standard Life Investments GARS Fund added to Macquarie Wrap

Matthew Newham

Standard Life Investments, the global asset manager, is pleased to announce that its highly successful Global Absolute Returns Strategies Australian Trust (ARN 125 891 26) is now available via the Macquarie Wrap platform.

Global Absolute Return Strategies (GARS) is an award-winning multi-asset strategy, which aims to provide positive returns irrespective of market conditions with reduced volatility compared to equities.

“We are delighted that Macquarie Wrap has added GARS to its investment offering. Macquarie is a well-regarded investment platform and we are thrilled GARS has been added. GARS is building good momentum in the retail sector,” said Matthew Newham, Investment Director Wholesale Business, Standard Life Investments.

The GARS Australian Trust has delivered strong returns since its inception in the Australian market in 2009, delivering an overall net return of 10.1% per annum, over the four years from 2009 to 30 June 2014.

The multi asset strategy has a risk expectation of a third to half of the equity market, with a target return of cash plus 5 per cent per annum (gross of fees), over rolling 3-year periods. The volatility of the fund over the four-year period has been just 4.3% compared to global equity volatility of 9.7% and 12.6% for Australian equities.

“GARS has a proven consistent four-year track record of returns for Australian investors which is important as investors increasingly shift away from the traditional balanced portfolio of equities and bonds and towards absolute return investing,” Mr Newham said.

“Unlike most traditional investment strategies that aim only to beat market benchmarks, a diversified absolute return approach focuses on delivering positive, stable returns, independent of specific market or economic conditions. Importantly, the absence of a benchmark index allows absolute return managers freedom to exercise full discretion, selecting only those strategies they expect will be rewarding.

“GARS consists of typically 25 to 35 strategies that span global markets, each one selected for its return potential over a three-year horizon. Crucially, we seek strategies that complement each other so the portfolio can work as a whole even when unexpected things happen in the markets,” he said.

“An absolute return approach, offering attractive levels of growth while also limiting the risk of capital loss, merits consideration for every investor’s portfolio.” Mr Newham said.