Standard Life Investments (SLI) has launched its Global Absolute Return Strategies (GARS) fund to retail investors providing them with access to institutional investment strategies.
The benchmark for the fund is UK six month sterling LIBOR and it aims to outperform by an additional 5% per annum gross of fees, over a rolling three year period.
The fund is designed to exploit inefficiencies across markets and to maximise global risk-adjusted returns.
It will invest in traditional investments such as equities, bonds and foreign exchange and advanced techniques such as relative value, duration, credit spreads, inflation and volatility strategies.
The fund will be run by SLI’s Multi-Asset Investing team which already runs the institutional GARS fund. Since launch in June 2006, this fund has delivered a gross annualised return of 9.8% despite market volatility and fund growth.
Jacqueline Kerr, head of mutual fund investments at SLI, says: “We expect GARS will prove particularly attractive to longer term investors, who will wish to invest in a fund that aims to provide positive investment returns in a variety of market conditions.”
SLI will make the fund available on a wide range of platforms which initially include Standard Life’s Wrap and Fundzone platforms. Standard Life is also set to launch an insured version of the fund which will initially be available exclusively through the provider.
Retail charges on the fund are 4% initial and 1.5% AMC. Commission for IFAs is 4%. The minimum investment for retail investors is £500.
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