FE cuts SLI GARS from latest Approved List rebalance

Increases North America allocation

In the latest rebalance of its Invest Approved List, FE has removed the £26bn Standard Life Global Absolute Return Strategies (GARS) vehicle, amid increased scrutiny of the absolute return sector.

The strategy has been hit by performance issues in recent quarters, including Q1 this year when it fell 3.3%; its worst quarterly performance since the Lehmans crisis in 2008. In the second quarter of 2016, GARS suffered its first quarterly outflow since 2013, after being "caught off guard" by the outcome of the European referendum. Over the past year to 7 September the fund is down 3% against an IA Targeted Absolute Return sector average of 1%, although over a three-year period it has returned 8.7%, in line with the sector.  Research manager at FE Research, Charles Younes, said: "We ...