Morningstar warns on SLI GARS capacity issues

Analyst warns investors to watch inflows into strategy

A senior research analyst at Morningstar has said capacity is becoming a major concern for the Standard Life Investments' Global Absolute Return Strategies (GARS), as the vehicle breaches the £40bn barrier.

Randal Goldsmith (pictured), senior manager research analyst at Morningstar, said the strategy's size is beginning to negatively impact performance and capacity is becoming "the major thing to watch". "We are keeping a close eye on asset capacity at Standard Life GARS. In our view, capacity issues are now having an impact which makes this issue key," he said. "Standard Life Investments said they would review the growth in AUM when the strategy hit the £40bn asset level, which it has now done. With this stretched capacity, we are already seeing changes to the fund and in particular hav...