Global Absolute Return Strategies

The Global Absolute Return Strategies (GARS) portfolio aims to give investors positive investment returns in all market conditions. We seek to provide the same returns that have historically been achieved by conventional long-term equity investment, but with less uncertainty than equity-only investing.

GARS targets cash* +5% each year (gross of fees) over rolling three-year periods. This is consistent with the long-term return available from equities and we expect to achieve this target with only one-third to one-half of the volatility of equities.

To achieve its objectives, GARS seeks to attain genuine diversification by actively allocating to a wide range of asset class exposures. So, as well as traditional investments in equities, fixed income and real estate, GARS can seek returns from currencies, interest rates and volatility.

Additionally, GARS can use advanced investment strategies such as relative value and directional returns. These strategies can help us make money even if markets are falling. In this way, we aim to enhance the return potential and provide investors with a smoother investment journey. We select strategies freely across geographies and markets, investing where we find the best return prospects within our robust risk constraints.

Benefits of GARS

  • Potential for positive investment returns – GARS targets positive returns irrespective of market conditions.
  • Smoother investment journey – GARS aims to deliver long-term, equity-level returns but with lower risk than equity-only investing.
  • Experienced team – GARS is managed by our experienced and award-winning multi-asset-investing team, comprising over 30 skilled and experienced investment professionals.
  • Genuine diversification – GARS invests in a wide range of strategies across asset classes in order to generate positive returns irrespective of market direction. As a result, GARS offers extensive portfolio diversification and flexibility.