Standard Life GARS fund sees first ever quarterly outflow: RBC

LONDON, Aug 9 (Reuters) - Standard Life (LSE: SL.L - news) 's flagship Global Absolute Return Strategies Fund (GARS) suffered its first quarterly outflow in the second quarter, RBC Capital Markets analysts said in a note to clients, adding they expect outflows from the fund to have worsened since the end of June.

Standard Life, which reported results earlier on Tuesday, posted a forecast-beating 7 percent rise in first-half assets under administration.

RBC (Other OTC: RBCI - news) analysts estimate GARS accounts for 30 percent of the group's earnings and based on their expectations that outflows from the fund are likely to continue, have stuck to their "underperform" rating on the stock.

GARS managed more than 26 billion pounds ($33.76 billion) at the end of June, making it one of the largest global so-called 'absolute return' funds, which aim to generate positive returns in all market conditions and whose popularity spiked higher among institutional as well as retail investors following the financial crisis of 2008. ($1 = 0.7702 pounds) (Reporting by Vikram Subhedar, editing by Simon Jessop)