‘No copycat products’ – Invesco Perpetual’s plan for GARS recruits

Invesco Perpetual is hoping to match the success of its £15bn fixed income range with the launch of its upcoming multi-asset arm, following the hire of three managers from Standard Life Investments’ Global Absolute Return Strategies (GARS) team.

David Millar, Dave Jubb and Richard Batty have left their roles within Standard Life Investments’ £12bn strategy and will relocate to Henley, UK when they join Invesco Perpetual in the new year.

Ian Trevers (pictured), head of distribution at Invesco Perpetual, said the team is “buzzing with new ideas”, but added any new products launched will have specific differences to the GARS offering.

“At Invesco Perpetual, we are known for having long-term time investment horizons and taking contrarian views and sticking to them. There will be no copycat products but something that is unique and identifiably Invesco, and not necessarily focused on absolute return.”

The hires follow the launch of three risk-rated products in the Balanced Risk range earlier this year under the global asset allocation team, headed up by Atlanta-based Scott Wolle.

“Multi-asset is going to be an absolutely key area with the way regulation and buying habits are changing. Advisers are recognising that strategies of this nature have an important role to play in clients’

portfolios, we have seen this with the success of GARS, Trevers said. Invesco Perpetual seems to be hoping to rival GARS with its new range, comparing it to the success it has seen in fixed income, spearheaded by Paul Causer and Paul Read.

Trevers said: “In 1994 we added a fixed income range to our equity-only business and now we are adding a multi-asset group. We would love to see the same success here in what will be a defining decade for multi-asset investing.”

At SLI, Euan Munro will still head up the 25-strong multi-asset investment arm, but four other SLI managers – Steve Weeple, Ian Pizer, Roger Sadewsky and Neil Richards – will move across to strengthen the team.

GARS was initially an internal strategy for Standard Life’s group pension scheme but opened its doors to retail investors in 2008 and has since seen assets soar to £12bn.

The popularity of GARS and the pace of its growth was a surprise to the group, said SLI’s head of wholesale Jacquie Lowe.

“I would be lying if I said we expected it to do as well as it has,” she said. “We had anticipated that people wanted more security, that was definitely a theme, but we had not expected this level of interest.”

Despite the loss of three key players on the GARS team, prominent investors including Chelsea Financial and Bestinvest said last week they will continue to back the strategy. However, Morningstar OBSR has placed the fund’s rating under review. 

 

This article was first published on Investment Week

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