Standard Life Investments said GARS is a multi-asset strategy which aims to provide positive returns irrespective of market conditions with reduced volatility compared to equities.
“GARS consists typically of between 25 to 35 strategies that span global markets, with each one selected for its return potential on a three-year horizon,” said Standard Life Investments spokesperson Mathew Newham.
“Today, retail investors are focused on managing risk and achieving consistent returns,” said Mr Newham.
“Diversified absolute return strategies, such as GARS, are helping Australian investors to achieve equity-like returns but with much lower volatility,” he said.
Standard Life Investments indicated that the volatility of the fund over a four-year period has been just 4.4 per cent, compared to global equity of 9.6 per cent and 12.6 per cent for Australian equities.
Standard Life Investments also said that GARS Australian Trust delivered an overall net return of 10.2 per cent per annum, over the four years from inception in 2009 to 31 March 2014.
“We aim to deliver a positive return each year, irrespective of market conditions, and this requires a very well diversified investment portfolio,” Mr Newham said.
