Standard Life Investments, the global asset manager, is pleased to announce that its successful Global Absolute Returns Strategies Trust (ARSN 125 897 261) has won the 2014 Lonsec Research (Lonsec) Rising Star Award.
The Standard Life Investments’ Global Absolute Return Strategies (GARS) is already a multi-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 Lonsec has recognised the very strong returns that GARS has delivered to investors. The fund has performed very well from an investment perspective and is now building good momentum in the retail sector, where it is available on a number of investment platforms,” said Matthew Newham, Investment Director Wholesale Business, Standard Life Investments.
The GARS Australian Trust has delivered an average of 9.4% per annum net of fees since its inception in the Australian market in 2009, and has delivered an average of 10.7% per annum net of fees in the last three years to 30 September 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 annum (gross of fees), over rolling 3-year periods. The volatility of the fund over the three-year period has been just 4.2% compared to global equity volatility of 9.6%.
“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.
