07/05/2008

SLI opens Global Absolute Returns Fund to Retail Investors

Leading fund manager, Standard Life Investments today announced that it has launched its Global Absolute Return Strategies (GARS) Fund to retail investors. The Unit Trust will provide retail investors with access to an absolute return fund that uses the same advanced investment techniques currently available to Standard Life Investments’ institutional investors.

The Global Absolute Return Strategies Fund seeks to provide investors with consistent, positive investment returns over the medium to long term in a variety of market conditions. The benchmark for the fund is UK six month sterling LIBOR1 and the fund aims to out perform by an additional 5% per annum gross of fees, over a rolling three-year period.

The GARS Fund is designed to exploit inefficiencies across markets and to maximise risk-adjusted returns from across the globe. It invests in a combination of traditional investments such as equities, bonds and foreign exchange and advanced techniques such as relative value, duration, credit spreads, inflation and volatility strategies.

Jacqueline Kerr, Head of Mutual Fund Investments at Standard Life Investments, said:

“This exciting new addition to our mutual fund range will be managed by our award-winning* Multi-Asset Investing team and will enable us to build upon the successful performance already generated by our institutional GARS Fund. Since its launch in June 2006, this fund has delivered a gross annualised return of 9.8% (SLI as at 06/05/08) despite extensive market volatility and considerable fund growth. This is an exciting development for Standard Life Investments’ retail offering and demonstrates our commitment to delivering exceptional investment solutions to that market. Having recently won ‘Multi-Asset Manager of the Year’ at the UK Pension Awards 2008*, this is an appropriate time to broaden the reach of this innovative product.

“We expect that GARS will prove particularly attractive to longer-term investors, who wish to invest in a fund that aims to provide positive investment returns in a variety of market conditions. It will also be of interest to those seeking to invest in an absolute return strategy while benefiting from daily pricing and liquidity, transparency, low minimum investment and competitive fees. Importantly, investors will reap the benefits of the robust and actively managed risk controls we have in place and the fact that it is based on our already proven global investment philosophy and process.

“In essence, this fund draws on all of our core strengths – stock picking expertise, dynamic asset allocation, derivatives management and execution, risk management, quantitative discipline – and is backed by our already strong performance track record. I am confident that the level of expertise, commitment and enthusiasm behind GARS will provide investors with an exciting opportunity.”

Standard Life Investments intends to make the Unit Trust available on a wide variety of fund platforms which initially include Standard Life’s Wrap and Fundzone platforms. Standard Life is also due to launch an insured version of the product which will initially be available exclusively through Standard Life.