The once-behemoth Abrdn Global Absolute Return Strategies Fund (formerly known as Standard Life GARS) is to be merged into the firm’s Diversified Assets suite of funds, as part of a strategic review.
According to Abrdn, three further “liability aware” absolute return funds are also set to close later this year.
The move comes following the simplification of the firm’s new Multi-Asset Investment Solutions franchise, which is being carried out to improve performance and clarify performance objectives.
A spokesperson said: “This decision reflects our assessment of the demand from clients, and we regard the diversified assets funds as key to the development of our multi-asset business given the good performance over an extended period, a differentiated investment universe and a well-structured and repeatable process.”
Having once proved immensely popular among retail and institutional investors, GARS, which at its peak had assets under management of almost £27bn, has subsequently suffered poor performance, numerous analyst moves and heavy criticism for its ‘opaque’ methodology. According to its latest factsheet, the IT Targeted Absolute Return Fund is now £856.9m in size.
Over one, three, five and ten years, Abrdn GARS has lost a respective 10.1%, 15.1%, 9.4% and 3.3%, according to data from FE Fundinfo. It is the second-worst performing fund in the IA Targeted Absolute Return sector over three and five years.
The strategic review will also see Russell Barlow, currently global head of alternative investment strategies, move to an expanded role as head of multi-asset and alternative investment solutions. Russell will continue to report to chief investment officer Peter Branner.
