January Standard Life Ireland MyFolio Market funds Combined updates and commentary

Transcription

1 January 2018 Standard Life Ireland MyFolio Market funds Combined updates and commentary

2 Standard Life Ireland MyFolio Market I Fund update January 2018 Performance Cumulative return Annualised return Fund manager: Standard Life Launch date: 27 January 2014 Currency: Euro Fund size: 55.9m 20% 10% 0% 1.2% 3 months unit price 2.6% 6.6% 3.2% pa 8.0% 1 year 2 years 3 years 15.7% 2.6% pa 3.8% pa Since launch Jan 2014 April 2014 July 2014 Oct 2014 Jan 2015 April 2015 July 2015 Oct 2015 Jan 2016 April 2016 July 2016 Oct 2016 Jan 2017 April 2017 July 2017 Oct 2017 Jan 2018 Performance is net of Annual Management Charge. The value of your investment may go down as well as up and may be affected by changes in currency exchange rates. Past performance is not a reliable guide to future performance. 02/16 Standard Life Ireland MyFolio Market funds - combined updates and commentary - January 2018

3 Asset allocation Split at 31 December 2017 Growth 27.2% Growth assets are generally higher risk investments with higher return potential Defensive 72.8% Defensive assets are generally lower risk investments with lower return potential Bonds 65.5% Money market instruments (including cash) 7.3% Equities 17.6% Bonds 5.4% Property 4.2% Split by class and fund at 31 December 2017 Bonds 70.9% Vanguard Euro Investment Grade Bond Index Fund 51.0% Standard Life Global Inflation Linked Bond Fund 13.8% Standard Life Global High Yield Bond Fund 2.7% Standard Life Emerging Market LC Debt Fund 2.7% Vanguard Euro Government Bond Index Fund 0.7% Equities 17.6% Vanguard Eurozone Stock Index Fund 7.7% Vanguard US 500 Stock Index Fund 4.7% Vanguard Japan Stock Index Fund 1.5% Vanguard FTSE UK All Share Index Fund 1.3% Vanguard Pacific Basin Stock Index Fund 1.2% Vanguard Emerging Markets Stock Index Fund 1.2% Money market instruments (including cash) 7.3% Standard Life Euro Global Liquidity Fund 7.3% Property 4.2% Standard Life Global REIT Fund 2.1% Standard Life Property Fund 2.1% This document is not an advertisement. A decision to invest should not be based on the information in it. Please talk to your financial adviser for more information, or if you need an explanation of the terms used. All fund data is provided by Standard Life Investments. Standard Life Ireland MyFolio Market funds - combined updates and commentary - January /16

4 Standard Life Ireland MyFolio Market II Fund update January 2018 Performance Cumulative return Annualised return 20% 22.4% Fund manager: Standard Life Launch date: 27 January % 0% 1.7% 3 months 4.4% 9.9% 1 year 2 years 12.6% 4.8% pa 4.0% pa 5.3% pa 3 years Since launch Currency: Euro Fund size: 91.3m unit price Jan 2014 April 2014 July 2014 Oct 2014 Jan 2015 April 2015 July 2015 Oct 2015 Jan 2016 April 2016 July 2016 Oct 2016 Jan 2017 April 2017 July 2017 Oct 2017 Jan 2018 Performance is net of Annual Management Charge. The value of your investment may go down as well as up and may be affected by changes in currency exchange rates. Past performance is not a reliable guide to future performance. 04/16 Standard Life Ireland MyFolio Market funds - combined updates and commentary - January 2018

5 Asset allocation Split at 31 December 2017 Growth 50.0% Growth assets are generally higher risk investments with higher return potential Defensive 50.0% Defensive assets are generally lower risk investments with lower return potential Bonds 46.4% Money market instruments (including cash) 3.6% Equities 32.8% Bonds 9.6% Property 7.6% Split by class and fund at 31 December 2017 Bonds 56.0% Vanguard Euro Investment Grade Bond Index Fund 34.9% Standard Life Global Inflation Linked Bond Fund 11.5% Standard Life Global High Yield Bond Fund 5.0% Standard Life Emerging Market LC Debt Fund 4.6% Equities 32.8% Vanguard Eurozone Stock Index Fund 15.5% Vanguard US 500 Stock Index Fund 8.4% Vanguard Japan Stock Index Fund 2.6% Vanguard Pacific Basin Stock Index Fund 2.0% Vanguard FTSE UK All Share Index Fund 2.2% Vanguard Emerging Markets Stock Index Fund 2.1% Property 7.6% Standard Life Global REIT Fund 4.1% Standard Life Property Fund 3.5% Money market instruments (including cash) 3.6% Standard Life Euro Global Liquidity Fund 3.6% This document is not an advertisement. A decision to invest should not be based on the information in it. Please talk to your financial adviser for more information, or if you need an explanation of the terms used. All fund data is provided by Standard Life Investments. Standard Life Ireland MyFolio Market funds - combined updates and commentary - January /16

6 Standard Life Ireland MyFolio Market III Fund update January 2018 Performance 30% 20% Cumulative return Annualised return 28.6% Fund manager: Standard Life Launch date: 27 January 2014 Currency: Euro Fund size: 119.1m 10% 0% 2.1% 3 months unit price % 12.1% 1 year 2 years 17.2% 5.9% pa 5.4% pa 6.6% pa 3 years Since launch 95 Jan 2014 April 2014 July 2014 Oct 2014 Jan 2015 April 2015 July 2015 Oct 2015 Jan 2016 April 2016 July 2016 Oct 2016 Jan 2017 April 2017 July 2017 Oct 2017 Jan 2018 Performance is net of Annual Management Charge. The value of your investment may go down as well as up and may be affected by changes in currency exchange rates. Past performance is not a reliable guide to future performance. 06/16 Standard Life Ireland MyFolio Market funds - combined updates and commentary - January 2018

7 Asset allocation Split at 31 December 2017 Growth 70.8% Growth assets are generally higher risk investments with higher return potential Defensive 29.2% Defensive assets are generally lower risk investments with lower return potential Bonds 28.2% Money market instruments (including cash) 1.0% Equities 47.3% Bonds 12.9% Property 10.6% Split by class and fund at 31 December 2017 Bonds 41.1% Vanguard Euro Investment Grade Bond Index Fund 20.4% Standard Life Global Inflation Linked Bond Fund 7.8% Standard Life Global High Yield Bond Fund 7.1% Standard Life Emerging Market LC Debt Fund 5.8% Equities 47.3% Vanguard Eurozone Stock Index Fund 23.1% Vanguard US 500 Stock Index Fund 11.7% Vanguard Japan Stock Index Fund 3.6% Vanguard FTSE UK All Share Index Fund 3.1% Vanguard Pacific Basin Stock Index Fund 2.9% Vanguard Emerging Markets Stock Index Fund 2.9% Property 10.6% Standard Life Global REIT Fund 5.6% Standard Life Property Fund 5.0% Money market instruments (including cash) 1.0% Standard Life Euro Global Liquidity Fund 1.0% This document is not an advertisement. A decision to invest should not be based on the information in it. Please talk to your financial adviser for more information, or if you need an explanation of the terms used. All fund data is provided by Standard Life Investments. Standard Life Ireland MyFolio Market funds - combined updates and commentary - January /16

8 Standard Life Ireland MyFolio Market IV Fund update January 2018 Performance 40% 30% Cumulative return Annualised return 35.4% 20% 21.6% 10% 7.8% 14.1% Fund manager: Standard Life 0% 2.4% 6.8% pa 6.7% pa 8.0% pa Launch date: 27 January 2014 Currency: Euro 3 months 1 year 2 years 3 years Since launch Fund size: 42.2m unit price Jan 2014 April 2014 July 2014 Oct 2014 Jan 2015 April 2015 July 2015 Oct 2015 Jan 2016 April 2016 July 2016 Oct 2016 Jan 2017 April 2017 July 2017 Oct 2017 Jan 2018 Performance is net of Annual Management Charge. The value of your investment may go down as well as up and may be affected by changes in currency exchange rates. Past performance is not a reliable guide to future performance. 08/16 Standard Life Ireland MyFolio Market funds - combined updates and commentary - January 2018

9 Asset allocation Split at 31 December 2017 Growth 88.9% Growth assets are generally higher risk investments with higher return potential Defensive 11.1% Defensive assets are generally lower risk investments with lower return potential Bonds 10.1% Money market instruments (including cash) 1.0% Equities 62.7% Bonds 12.8% Property 13.4% Split by class and fund at 31 December 2017 Bonds 22.9% Vanguard Euro Investment Grade Bond Index Fund 7.8% Standard Life Global High Yield Bond Fund 7.6% Standard Life Emerging Market LC Debt Fund 5.2% Standard Life Global Inflation Linked Bond Fund 2.3% Equities 62.7% Vanguard Eurozone Stock Index Fund 31.3% Vanguard US 500 Stock Index Fund 15.1% Vanguard Japan Stock Index Fund 4.7% Vanguard FTSE UK All Share Index Fund 4.0% Vanguard Pacific Basin Stock Index Fund 3.8% Vanguard Emerging Markets Stock Index Fund 3.8% Property 13.4% Standard Life Global REIT Fund 7.0% Standard Life Property Fund 6.4% Money market instruments (including cash) 1.0% Standard Life Euro Global Liquidity Fund 1.0% This document is not an advertisement. A decision to invest should not be based on the information in it. Please talk to your financial adviser for more information, or if you need an explanation of the terms used. All fund data is provided by Standard Life Investments. Standard Life Ireland MyFolio Market funds - combined updates and commentary - January /16

10 Standard Life Ireland MyFolio Market V Fund update January 2018 Performance 40% 30% Cumulative return Annualised return 42.1% 20% 25.9% Fund manager: Standard Life Launch date: 27 January 2014 Currency: Euro Fund size: 12.0m 10% 0% 3.0% 9.7% 3 months unit price % 1 year 2 years 7.8% pa 8.0% pa 9.3% pa 3 years Since launch Jan 2014 April 2014 July 2014 Oct 2014 Jan 2015 April 2015 July 2015 Oct 2015 Jan 2016 April 2016 July 2016 Oct 2016 Jan 2017 April 2017 July 2017 Oct 2017 Jan 2018 Performance is net of Annual Management Charge. The value of your investment may go down as well as up and may be affected by changes in currency exchange rates. Past performance is not a reliable guide to future performance. 10/16 Standard Life Ireland MyFolio Market funds - combined updates and commentary - January 2018

11 Asset allocation Split at 31 December 2017 Growth 97.0% Growth assets are generally higher risk investments with higher return potential Defensive 3.0% Defensive assets are generally lower risk investments with lower return potential Bonds 2.0% Money market instruments (including cash) 1.0% Equities 82.4% Property 14.6% Split by class and fund at 31 December 2017 Bonds 2.0% Vanguard Euro Investment Grade Bond Index Fund 2.0% Equities 82.4% Vanguard Eurozone Stock Index Fund 43.4% Vanguard US 500 Stock Index Fund 18.8% Vanguard Japan Stock Index Fund 5.8% Vanguard FTSE UK All Share Index Fund 5.0% Vanguard Pacific Basin Stock Index Fund 4.7% Vanguard Emerging Markets Stock Index Fund 4.7% Property 14.6% Standard Life Global REIT Fund 8.8% Standard Life Property Fund 5.8% Money market instruments (including cash) 1.0% Standard Life Euro Global Liquidity Fund 1.0% This document is not an advertisement. A decision to invest should not be based on the information in it. Please talk to your financial adviser for more information, or if you need an explanation of the terms used. All fund data is provided by Standard Life Investments. Standard Life Ireland MyFolio Market funds - combined updates and commentary - January /16

12 Standard Life Ireland MyFolio funds commentary January 2018 Environment Global equities finished 2017 in fine style, with many indices hitting all-time highs. The ongoing improvement in the world's economy and a strong corporate reporting season drove this. Sentiment also received a fillip after US President Trump signed his much-vaunted $1.5 trillion tax cut into law. As with much of the year, politics remained to the fore. This included a vote for independence in Catalonia (rejected by Madrid), the formation of the European Union s first far-right government in Austria and a landslide snap election victory for Japanese Prime Minister Shinzo Abe. Meanwhile, Brexit talks progressed to the second phase after the striking of a last-minute deal. Bond markets were volatile in the final quarter of There was another interest rate hike in the US, while in the UK the Bank of England raised interest rates for the first time in more than a decade. Global government bonds did manage to deliver a small positive return. In the UK, the breakthrough in Brexit negotiations was positive for gilts. Meanwhile, the announcement that the European Central Bank would reduce its bond-buying programme more gradually than expected benefited European bonds. Corporate bonds experienced a positive quarter given the generally robust global economic environment and solid corporate earnings. UK commercial real estate delivered positive performance during the fourth quarter, concluding a relatively rewarding year for investors. Income returns remained strong, supported by robust occupational demand, while capital values also strengthened over the year. UK investment volumes held up well, still largely driven by overseas buyers. Demand for industrial assets was particularly buoyant, as favourable fundamentals and the security of long-lease income continued to attract investors. As a result, the sector delivered the strongest returns over the quarter and the year. Activity We review the Strategic Asset Allocation (SAA) for each of the MyFolio funds every quarter, with the aim of ensuring that we continue to meet investors long-term interests. Following the most recent review, we made no changes to the SAA model. There were no Tactical Asset Allocation changes to the MyFolio Active funds over the period. Meanwhile, we continue to seek growth opportunities in the funds alongside income in a world of low yields. Despite historically low growth, there should be cyclical opportunities as economic activity broadens out, so company profits may be sustained. Political risks have dampened but could still surprise investors, positively or negatively. In addition, monetary policy does not need to tighten aggressively as underlying inflation is restrained. Specifically, the funds continue to favour growth assets over defensive and specifically global equities through overweight allocations (relative to the SAA to US, European, Japanese and Asia Pacific equities, while maintaining an underweight allocation to UK equities. We continue to hold underweight allocations in global index-linked bonds and Euro-denominated corporate bonds in addition to the underweight allocation to UK commercial property. Please note that allocations to specific asset classes may not apply at all risk levels. 12/16 Standard Life Ireland MyFolio Market funds - combined updates and commentary - January 2018

13 Market outlook Global equity markets enter 2018 on a sound footing. The world economy is growing at a robust rate, which is feeding into healthy corporate profits. Central banks have started to withdraw monetary stimulus, although any future moves will be measured and data-dependent. Challenges remain, notably around geopolitics, the US debt ceiling and potential policy missteps. China could also slow more sharply than expected. Nonetheless, the overall the outlook is encouraging. The outlook for bonds is generally less positive. However, there is enough uncertainty to make it unlikely that government bonds will fall in value significantly. Valuations in some parts of the corporate bond market are a little stretched. However, we believe that the fairly benign macroeconomic environment should provide support. UK real estate dynamics remain supportive, although we expect returns to moderate as the economy experiences weaker growth in Although Brexit negotiations progressed at the end of 2017, the full economic impact remains unknown and this will continue to affect sentiment towards UK commercial real estate. Despite this uncertainty, we expect real estate to remain attractive to investors seeking a source of sustainable income. Standard Life Ireland MyFolio Market funds - combined updates and commentary - January /16

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16 Pensions Savings Investments Find out more Talk to your financial adviser, they ll give you the information you need. Also, you can call us or visit our website. (01) Mon-Fri, 9am to 5pm. Calls may be monitored and/or recorded to protect both you and us and help with our training. Call charges will vary. facebook.com/standardlifeireland youtube.com/standardlifeireland Standard Life Assurance Limited is authorised by the Prudential Regulation Authority in the UK and is regulated by the Central Bank of Ireland for conduct of business rules. Standard Life Assurance Limited is registered in Dublin, Ireland (905495) at 90 St Stephen s Green, Dublin 2 and Edinburgh, Scotland (SC286833) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. MFMUCC V Standard Life Aberdeen. All rights reserved.