While market research is being conducted on a possible expansion of GARS, Standard Life Investments (SLI) is also looking at other types of multi-asset funds. Any plans are still at the idea stage with product specifications and the regulatory approval process not even started, SLI noted.
It is believed among the ideas the group is researching with potential investors is the possibility of a retail version to the group’s existing bond version of GARS, which was created originally as a segregated mandate for an institutional client.
“Standard Life Investments has a broad innovation agenda across all asset classes and is continually carrying out research and product development targeted at meeting a wide range of client needs. We currently have a number of projects in the pipeline and likely to launch, subject to regulatory approval, over the next couple of quarters.”
GARS has come under increased scrutiny of late considering its current asset size as well as the upcoming departure of its manager and founder Euan Munroe, which was revealed earlier this month. Munroe is to take over as Aviva’s CEO in January. GARS is currently being managed by Guy Stern.
John Husselbee, CEO of North, commented there may be limited scope to run too many variations of GARS other than perhaps a fixed interest version. "It is a global macro fund so I’m not sure there are too many different ways to run it at the same group. One possibility could be a version that has the same engine as GARS but with the volume turned up or down." Husselbee noted SLI has developed a strong multi-asset reputation on the back of GARS’ success. That said he was doubtful of the appeal for a long-only version of GARS, noting it is the portfolio’s hedging ability that has been a real draw for investors.
