IW Leader: How managers are guarding against '1994 moment'

As detailed in the last issue of Investment Week the June sell-off, notable for a rise in correlations across asset classes, caused a lot of problems for funds that rely on diversification to flourish.

With only the US dollar safe from falls last month, multi-asset managers were left with nowhere to hide – and flagship vehicles on either side of the pond were among those that struggled most. Standard Life Investments’ GARS offering, a perennial adviser and wealth manager favourite that has held up well in previous periods of volatility, was one of those that suffered, falling 2.3% on the month. Looking at one-month performance figures may be short term in the extreme, but the context of that performance gives investors pause for thought. The talk has been of another ‘1994 moment’...