Monksfield
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Wealth Options has a five-year Global Absolute Return Bond, which is linked to the Standard Life Investments Global Absolute Return Strategies Fund with the stated aim of providing “positive investment returns in all market conditions over the medium to long term”. It also has a multi-asset global bond.
That's an impressive return indeed. Nonetheless Standard Life benchmarks it against cash, hence my description. It also states that in aggregate it will never have more than 40% invested in equities. That looks cautious to me and they themselves put it in the low volatility category. Hence totally unsuitable for Tracker style product and I stand by my comments.@Duke
Afraid I disagree strongly with the statement that GARS is a glorified cash fund. It was up 19% in 2009 and shows a correlation with global equities of around 0.55.
It could quite easily lose money in a given year especially as being managed against a 3 year time horizon - one of its strengths.
I have rather let this volatility control mechanism slip under my radar.Because of the volatility control mechanism, the averaging and the charges there is little or no chance of performance coming in anywhere near that of GARS itself.
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