ASI STANDARD GLOBAL ABSOLUTE RETURN STRATEGIES I
ASI STANDARD GLOBAL ABSOLUTE RETURN STRATEGIES I –
Overview of ASI STANDARD GLOBAL ABSOLUTE RETURN STRATEGIES I
This fund seeks to generate a positive return of 5% above cash (before fees) over the medium term and irrespective of market conditions. To achieve this, the investment team uses a number of discrete strategies each reflecting a specific investment idea which are each intended to provide small, incremental returns to generate the positive overall return with relatively low volatility (4-8% p.a.). The fund will employ notional leverage to achieve its investment objectives.Targeted Absolute Return funds do not guarantee a positive return and you could get back less than you invested, much like any other investment. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products.
Before investing make sure you have understood the risks relevant to the fund by reviewing ourRisk Warningssection. Further information on the risks are contained in the funds Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
Standard Life have been running the Global Absolute Return Strategies (GARS) mandate for institutional clients since 2006. Essentially this is a transparent, cost efficient multi-strategy hedge fund seeking to deliver positive returns over the medium term at relatively low levels of volatility. The mandate is diversified with no single strategy dominating the portfolio risk profile. Whilst there have been some defections from the team, the process remains well resourced.
The GARS portfolio is built using input from 3 teams: a global strategy team, responsible for idea generation; risk management responsible for position sizing and portfolio management with responsibility for idea implementation. Investment ideas are based on a 2-3 year view. The team will invest in both traditional asset classes, such as equities and bonds, as well as more sophisticated, derivative-based instruments. The managers do not seek to exploit short term arbitrage, instead the focus is on multi-year fundamental opportunities. Typically the fund will employ 23 to 40 trades which SLIM categorise as market directional, market return and relative value; at any time the portfolio maybe more skewed to one of these categories depending on the opportunity set. The objective is to build a diversified portfolio of uncorrelated trades, each individual trade is designed to make a positive contribution to performance. Risk is tightly controlled with a particular focus on the Value at Risk (VAR) and volatility targets (4-8%p.a).
The portfolio is well diversified with no one position dominating risk exposures.
Maximum stand alone equity exposureThe portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.
Guy Stern is responsible for day to day running of multi-asset portfolios and heads the investment teams covering both absolute return and liability driven investment mandates. There are three core areas covered by the team: Multi-Asset Portfolio Managers also headed by Guy Stern; Strategic and economic analysis headed by Andrew Milligan; and Risk monitoring and control headed by Brian Fleming. The Multi-Asset Investing Team of 31 professionals also uses the expertise of all the asset desks across Standard Life Investments, including the Treasury Banking, Equity and the Fixed Income Teams.
Standard Life Multi Asset Team has 13 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.96%. During the worst period of relative performance (from January 2016 – April 2019) there was a decline of 100% relative to the index. The worst absolute loss has been 10%.
Issued by Tilney Investment Management Services Limited, (Reg. No: 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Tilney Investment Management Services Limited and other companies in the Tilney Group, further details of which areavailable here. This site is for UK investors only. © Tilney Group Ltd 2017.
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