GARS Offers Institutional Investors Potential for Long Term Equity-Like
Considerably Less Uncertainty
MONTREAL, May 30, 2011 /CNW Telbec/ - Standard Life Investments, a
premier global asset manager, today announced that its Global Absolute
Return Strategies (GARS) Portfolio is now widely available to
institutional investors in Canada. A daily valued version of GARS is
now available to tax exempt investors through Standard Life Investments
and Standard Life's Group Savings and Retirement's Quality and Choice
Standard Life Investments UK originally launched GARS in September 2005
to satisfy the requirements of Standard Life plc's own defined benefits
pension plan. The success was compelling enough to capture the
attention of institutional investors in Europe, Australia, the U.S.,
and now Canada.
During the financial crisis of 2008, while global equity markets fell
over 40%, the UK GARS fund only fell by 4.7%. Since the inception of
the fund, it has produced a gross annualised return of 9.3% with a
volatility of only 6.2%. Over the same period global equities, denoted
by the MSCI World Index, returned 6.7% per year with a volatility of
Standard Life Puts Its Skin in the Game
"In no uncertain terms, Standard Life put its skin in the game, and
investors have responded very positively ever since," said Chris
Arnott, Investment Director, Standard Life Investments in the UK. "GARS
is an innovative investment solution designed to lessen the ups and
downs of the economic cycle, grounded by the thinking of our most
experienced strategists and vigorous risk management. Clients truly
appreciate that GARS was developed by us, and originally, for us,"
"There simply is no other comparable fund available. GARS uses the
widest range of strategies, aimed at diversifying risk and achieving
positive returns in all market conditions," said Emmanuel Matte,
Vice-President, at Standard Life Investments in Canada. "GARS is an
ideal complement to a liability-driven investment strategy or more
generally, for institutional investors looking for long term
equity-like returns with considerably less uncertainty," added Matte.
Alcoa Chooses GARS
Today, GARS has over $11.4 billion of assets under management and has
attracted over 300 institutional clients spanning a range of blue chip
corporate, charity and local authority pension funds. In Canada,
eligible investors are already opting to participate, including Alcoa
"We were eager to de-risk our Alcoa Canada pension fund portfolio while
maintaining similar long term equity-like target returns. Simply put,
Standard Life Investments' GARS portfolio meets our requirements," said
Alain Taillefer, Alcoa Canadian Shared Services Manager, Alcoa Canada.
"We have allocated a portion of our defined benefits portfolio toward
GARS and we are confident that it will help sustain our pension fund on
the long term, for the benefit of our company and our employees," said
The Global Absolute Return Strategies Portfolio aims to deliver an
absolute return over rolling 12-month periods and has a target return
of cash2 +5% per annum (gross of fees) over rolling 3-year periods. To achieve
this, the Multi-Asset Investing Team looks to exploit market
inefficiencies through active allocation to highly diversified market
positions. They utilise a combination of traditional assets (such as
equities, bonds and real estate) with advanced instruments, such as
derivatives, to achieve a highly diversified portfolio. To manage risk,
GARS makes use of derivatives.
About Standard Life Investments
Standard Life Investments Inc. has been providing investment management
services in Canada since 1973 and manages approximately CDN$30.63 billion of assets. SLI Inc. is a subsidiary of Edinburgh-based Standard
Life Investments Limited, a premier asset manager and part of the
Standard Life group that manages CDN$244.03 billion on behalf of clients worldwide.
1 As at March 31, 2011.
2 The Canadian-based fund targets the 6-month Canadian Dealer Offered Rate
(CDOR) as its proxy for cash returns.
3 As at December 31, 2010.
SOURCE STANDARD LIFE INVESTMENTS INC.
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