Munro was global head of multi-asset investing and fixed income at the firm, and considered to be the "architect" of the £17.8m fund, which has become the go-to product for investors looking for an absolute return strategy in recent years.
His previous number-two, Guy Stern, who was formerly head of multi-asset and macro management, will take Munro’s place as head of the fund.
Charles Younes (pictured), an analyst on the FE Research team, says he is very surprised by the announcement, which he believes is a major blow for the fund.
"It’s a big shock, I only met with the team last week," he said. "I saw him as the architect of the fund, and so this is big news." "In the short-term, I see no real big change – Guy Stern has been there for a very long time and knows the process inside-out."
"However, it’s clearly a big blow because Munro delivered the long-term thinking behind the fund. He developed the whole concept and structure, and so there’s definitely uncertainty surrounding it."
Younes says the FE Research team will review GARS’ place on the FE Select 100, but would not be drawn into commenting on whether or not it will be taken off of the recommended list of funds.
Head of research at Hargreaves Lansdown Mark Dampier says his firm will also be reviewing its positive position on the fund, and has taken it off the Wealth 150 list for the time being.
Younes adds that a rival to Standard Life GARS is unlikely to be set up at Aviva Investors as Munro is joining as a business manager rather than a product developer or fund manager.
"Munro isn’t leaving to run another fund or strategy, which is important to GARS for obvious reasons," Younes said.
"Standard Life is confident that the day-to-day running of the fund won’t change, as Guy Stern has been responsible for this for a long time anyway. Essentially, Stern and the various risk and strategy teams would come up with their ideas and Munro would approve them, and so there shouldn’t be too many changes."
"The group says the development and process will remain unchanged."
Dr Brian Fleming will remain head of multi-asset risk at Standard Life, but will fill Stern’s role as number-two.
Keith Skeoch, chief executive officer at Standard Life Investments, echoed Younes’ view. "Guy has been responsible for the day-to-day running of our multi-asset investments since 2008 and has 30 years’ experience in the industry," he said.
"He will be a very valuable addition to the executive team, bringing a wide range of skills, knowledge and expertise in the areas of multi-asset and macro investing."
"Guy joins the board following the resignation of Euan Munro, who has left to take up a broader senior business management role elsewhere. I would like to thank him for his contribution to the business and wish him every success in the future."
Standard Life is a multi-strategy absolute return fund, with a range of long-only, directional and market-neutral positions. FE Trustnet explored the intricacies of the fund in a recent article.
GARS has been largely successful since its launch into the retail market in May 2008, delivering returns of 41.08 per cent. This puts it well ahead of its sector average, Libor GBP 6month index benchmark and UK inflation.
Performance of fund, sector and indices since launch
Source: FE Analytics
It has managed to post a positive return in every calendar year since inception, but as the graph above shows, it has had numerous bumps along the way – particularly in the depths of the financial crisis.
FE Trustnet recently pointed out that the fund struggled to protect effectively against the May and June equity market sell-off, losing more than 5 per cent in the process.
Standard Life GARS requires a minimum investment of £500 and has ongoing charges of 1.59 per cent.
Commenting on the appointment of Munro, group chief executive officer of Aviva Mark Wilson, said: "This is an important appointment for Aviva. Euan’s track record in fixed income and multi-asset management, and his experience in an insurance environment, made him the outstanding candidate to lead Aviva Investors."
