GARP meaning

GARP (growth at a reasonable price) describes an equity investment style often stated in fund documents and investment mandates reviewed by lawyers. In practice it indicates that the manager will seek companies with solid or above‑market growth prospects but at valuations considered reasonable, blending “growth” and “value” approaches (commonly assessed by metrics such as price/earnings and PEG ratios). GARP is a market term, not defined in legislation or case law. Its legal relevance is in how it frames the investment objective, policy and risk profile in documents such as fund prospectuses/offering memoranda (UCITS/AIFMD), PRIIPs KIDs, MiFID II disclosures, marketing communications, investment management agreements, and pension scheme Statements of Investment Principles and implementation statements. Counsel should ensure the term is used consistently and is supported by clear strategy disclosure, appropriate risk factors, and measurable constraints or examples where required by regulation. In the UK (England & Wales, Scotland and Northern Ireland), FCA rules (including Consumer Duty, conduct of business and financial promotions) govern how such strategies are described and evidenced; in Ireland, equivalent Central Bank of Ireland requirements apply. The meaning of GARP is broadly consistent across these jurisdictions, though disclosure and supervisory expectations may differ. Misleading use may raise regulatory, misrepresentation or...