May
2015
Global Absolute Return
Strategies Fund
31 May 2015
The fund aims to provide positive investment returns in all market conditions over the medium to long term.
The fund is actively managed, with a wide investment remit to target a level of return over rolling three-year
periods equivalent to cash plus five per-cent a year, gross of fees. It exploits market inefficiencies through
active allocation to a diverse range of market positions. The fund uses a combination of traditional assets
(such as equities and bonds) and investment strategies based on advanced derivative techniques, resulting
in a highly diversified portfolio. The fund can take long and short positions in markets, securities and
groups of securities through derivative contracts.
The value of investments within the fund can fall as well as rise and is not guaranteed - you may get back
less than you pay in. The fund may use derivatives for the purpose of efficient portfolio management and to
meet its investment objective. The value of overseas assets held in the fund may rise and fall as a result of
exchange rate fluctuations.
Fund Manager
Shareclass Launch
Date
Current Fund Size*
Shareclass
Base Currency
Multi Asset Investing Team
14 Jun 2011
Benchmark**
SICAV Fund
Absolute Return
Fund
Monthly
6 Month EURIBOR
£9,134.0m
GBP (hedged)
EUR
* Fund size calculated using the base currency in Euros converted into Sterling using the FX rate of 1:0.72 on 31/05/2015.
** This is the Fund benchmark. Where shareclasses are available in a different currency to the Fund's base currency, an alternative benchmark
will be referenced for performance comparison purposes. For example, for a USD-hedged shareclass, performance will be referenced against
a USD-hedged version of the Fund benchmark or a local currency (equivalent) index.
This document is intended for use by individuals who are familiar with investment terminology. Please contact your financial adviser if you need an
explanation of the terms used. Please note that the Portfolio Risk and Return Analysis table is only updated on a quarterly basis.
For a full explanation of specific risks and the overall risk profile of this fund and the shareclasses within it, please refer to the Key Investor
Information Documents and Prospectus which are available on our website – www.standardlifeinvestments.com
Fund Information *
Quarterly Portfolio Risk and Return Analysis
Strategy
Market Returns European equity
Strategies
Global equity miners
Global equity
High yield credit
Chinese equity
US equity
EU corporate bonds
UK corporate bonds
FX hedging
UK equity
Global equity oil majors
Directional
Short US duration
Strategies
Long USD v EUR
Long MXN v AUD
Long INR v EUR
Long USD v CAD
Mexican rates v EUR
Australian forward-start interest rates
Brazilian government bonds
Long European payer swaptions
Long USD v JPY
Long equity variance
Short UK real yields
Relative Value US equity tech v small cap
Strategies
US butterfly
European equity banks
Japanese v Korean equity
German v French equity
European v US and Japanese duration
Asian v S&P variance
HSCEI v FTSE variance
Global miners v Swiss equity
Cash
Cash
Residual
Stock selection
Total
Diversification
Expected Volatility
Stand-alone Risk
Exposure %
1.0
0.6
0.3
0.3
0.2
0.2
0.1
0.1
0.1
0.0
Closed
0.9
0.7
0.6
0.6
0.5
0.5
0.4
0.3
0.3
0.2
Closed
Closed
Weighting (risk based %)
7.9
4.9
2.5
2.5
1.8
1.2
1.0
0.9
0.7
0.1
7.3
5.7
5.1
4.4
4.1
3.7
3.1
2.6
2.2
1.7
1.0
0.7
0.6
0.6
0.5
0.4
0.2
0.2
Closed
8.0
5.5
5.1
4.4
3.9
3.2
1.7
1.7
0.0
0.4
12.5
8.8
3.7
0.0
3.1
Contribution to Returns %
Q1
1.1
-0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.6
1.2
0.3
0.7
1.3
0.3
0.3
0.2
0.0
0.1
-0.1
-0.1
-0.2
-0.1
-0.1
0.1
0.2
0.0
-0.1
-0.1
0.2
0.1
0.0
0.0
4.9
1 Yr
1.1
-0.1
0.7
0.3
0.1
0.3
0.3
0.0
-0.1
0.1
-0.1
-1.6
2.5
0.3
1.1
1.9
0.7
1.5
0.2
0.0
0.9
-0.4
-0.9
1.1
-0.1
-0.4
0.9
0.3
0.6
-0.2
-0.1
-0.6
0.2
-0.3
-0.1
Individual strategy contributions are based on gross returns. The attribution of returns to individual strategies is performed on a best endeavours basis and uses market data at the close of business
at the end of each period. This data is typically unavailable at the time unit prices are struck resulting in minor differences between unit price performance and this attribution. Such differences do
not accumulate so cancel out over time.
Fund Performance *
Price Indexed
135
Performance has been calculated over
the stated period on the share price
performance basis, based on the
institutional shareclass and net of fees.
For your relevant charges please contact
your Standard Life Investments Sales
Representative.
130
125
120
Source: Standard Life Investments
(Fund) and Thomson Datastream
(Benchmark)
115
110
105
100
Global Absolute Return
Strategies
May-15
Nov-14
May-14
Nov-13
May-13
Nov-12
May-12
Nov-11
95
6 Month GBP LIBOR
Cumulative Performance
Source: Standard Life Investments (Fund) and Thomson Datastream (Benchmark)
YTD (%)
1 month (%)
3 months (%)
6 months (%)
1 year (%)
Retail Fund Performance
4.6
0.8
0.5
4.3
8.6
Institutional Fund Performance
4.9
0.9
0.7
4.7
9.5
6 Month GBP LIBOR
0.3
0.1
0.2
0.3
0.7
3 years (%)
Since launch (%)
Retail Fund Performance
20.7
28.5
Institutional Fund Performance
23.4
32.5
2.2
3.5
6 Month GBP LIBOR
Note: Past Performance is not a guide to future performance. The price of shares and the income from them may go down as well as up and
cannot be guaranteed; an investor may receive back less than their original investment.
For full details of the fund's objective, policy, investment and borrowing powers and details of the risks investors need to be aware of, please
refer to the prospectus.
Monthly Investment Review and Outlook
Market review
Activity
Global equities moved modestly higher
in May. However, markets were fairly
volatile and performance was mixed at
a regional level, with developed
markets outperforming emerging
markets.
In May, we closed our European versus
US and Japanese duration strategy.
Back in February, when German bund
yields crossed Japanese JGB yields, we
reviewed the position and decided to
retain it, a move which proved
rewarding. However, we now believe it
is prudent to close the strategy, given
the valuation and scale of performance
it has delivered.
The US S&P 500 Index reached a new
record high, buoyed by favourable
corporate results and receding
expectations of an imminent rate hike.
Elsewhere, UK stocks benefited from
the Conservative Party’s surprise
election win, while Japan made solid
gains on better-than-expected growth
figures. Progress in Europe was
hampered by lingering uncertainty over
Greece, as agreement between Athens
and its creditors remained elusive.
Government bonds again
underperformed equities and yields
rose. Credit also posted negative
returns, with high yield issues faring
better than investment grade. Spreads
were little changed over the month.
Global economic data were mixed. In
Europe, for instance, Spain and Italy
reported solid first-quarter growth,
while German business confidence
registered a sharp month-on-month
decline in May. Eurozone consumer
confidence also worsened for the
second consecutive month in May. In
Japan, meanwhile, the economy grew
between January and March for the
second straight quarter, exceeding
market expectations.
In currency markets, the US dollar
rallied from its mid-May low.
Commodity prices again weakened.
Performance
The Global Absolute Return Strategies
Fund returned 0.79% during the month
(net of retail fees), compared to the
benchmark 6-month GBP LIBOR return
of 0.06%.
After a month of relative weakness in
April, the US dollar regained positive
momentum in May, bolstered by firmer
economic data. This was positive for
our long US dollar currency pairs,
particularly the US dollar versus
Canadian dollar position. Also among
the top performers was our long
Mexican peso versus Australian dollar
strategy. This was due largely to
weakness in the Australian dollar
which, after reaching its highest point
since January, eventually responded to
a cut in interest rates and started to
fall. Exacerbated by poor economic
data and weakness in commodityrelated currencies, this trend persisted
into month-end.
Quantitative easing by the European
Central Bank has driven down
European sovereign yields in recent
months. However, yields in both the
US and Europe moved sharply higher
in May, as investors reassessed the
inflation and growth outlooks for these
regions, amid signs their respective
economies were improving. This was
supportive of our short US duration
strategy, which benefits from higher
rates in the US.
Also positive was our exposure to
Brazilian government bonds. The
market is moving on from the Petrobras
scandal, focusing instead on the
sound fiscal policies being pursued by
the government and the anchoring of
inflation expectations. Elsewhere, the
notable strength of Japanese equities
benefited our exposure here, and this
position ranked among the best
contributors.
The main performance detractors
included our global equity miners
position. These stocks struggled as
commodity prices such as copper
slipped lower in May.
Outlook
Our central expectation is still for
modest global growth, albeit with
regional variations. A growing
divergence in central bank monetary
policy will remain an important driver
of asset returns. On the one hand, the
US appears to be nearing a tighter
monetary regime, whereas economies
like Europe and Japan continue on a
looser monetary path. Geopolitical
tensions remain high and on many
metrics asset prices appear expensive.
We seek to exploit the opportunities
that these conditions present by
implementing a diversified range of
strategies using multiple asset classes.
Other Fund Information
Retail Acc
SLGLHAG LX
LU0621233898
A1H99Y
Bloomberg
ISIN
WKN
Domicile
Custodian Name
Auditor Name
Retail Dist
-
Institutional Acc
SLGLHDG LX
LU0621233971
A1H99Z
Institutional Dist
-
Luxembourg
The Bank of New York Mellon (Luxembourg) S.A., 2-4 Rue Eugene Ruppert, L-2453 Luxembourg,
Grand Duchy of Luxembourg
PricewaterhouseCoopers S.à r.l., Reviseur d'entreprises 400, route d'Esch, L-1014 Luxembourg,
Grand Duchy of Luxembourg
Reporting Dates
Interim
30 Jun
Annual
31 Dec
Settlement Time
Email
Telephone
Share Price Calculation Time
Dealing Cut Off Time
T+4
[email protected]
+352 24 525 716
15:00 (Luxembourg time)
13:00 (Luxembourg time)
Currency
GBP
GBP
GBP
*Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is
licensed for use by Standard Life**. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be
accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Standard Life** or any other third party (including any
third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data.
Past performance is no guarantee of future results. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to
which Third Party Data relates.
**Standard Life means the relevant member of the Standard Life group, being Standard Life plc together with its subsidiaries, subsidiary undertakings
and associated companies (whether direct or indirect) from time to time.
“FTSE®”, "FT-SE®", "Footsie®", [“FTSE4Good®” and “techMARK] are trade marks jointly owned by the London Stock Exchange Plc and The Financial
Times Limited and are used by FTSE International Limited (“FTSE”) under licence. [“All-World®”, “All- Share®” and “All-Small®” are trade marks of
FTSE.]
The Fund is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”), by the London Stock Exchange Plc (the
“Exchange”), Euronext N.V. (“Euronext”), The Financial Times Limited (“FT”), European Public Real Estate Association (“EPRA”) or the National
Association of Real Estate Investment Trusts (“NAREIT”) (together the “Licensor Parties”) and none of the Licensor Parties make any warranty or
representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE EPRA NAREIT Developed Index (the
“Index”) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and
calculated by FTSE. However, none of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index
and none of the Licensor Parties shall be under any obligation to advise any person of any error therein.
“FTSE®” is a trade mark of the Exchange and the FT, “NAREIT®” is a trade mark of the National Association of Real Estate Investment Trusts and
“EPRA®” is a trade mark of EPRA and all are used by FTSE under licence.”
Additional Information for Switzerland : The prospectus, the key investor information documents, the articles of incorporation, the annual and
semiannual report in German, and further information can be obtained free of charge from the representative in Switzerland: Carnegie Fund Services
S.A., 11, rue du Général-Dufour, CH-1204 Geneva, Switzerland, web: www.carnegie-fund-services.ch. The Swiss paying agent is: Banque Cantonale de
Genève, 17, quai de l’Ile, CH-1204 Geneva. The last share prices can be found on www.fundinfo.com.
To find out more about our fund range, visit our website or alternatively speak to your
usual contact at Standard Life Investments.
www.standardlifeinvestments.com
Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL.
Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority.
Standard Life Investments Global SICAV is an umbrella type investment company with variable capital registered in Luxembourg (no. B78797) at 2-4, rue Eugéne Ruppert,
L-2453 Luxembourg, Grand Duchy of Luxembourg.
Calls may be monitored and/or recorded to protect both you and us and help with our training.
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© 2015 Standard Life
201506101002 INVRT661 0515 SZVZ_GBP