Portrait Portfolio Funds

Transcription

1 Investment Solutions Standard Life Mutual Funds Portrait Portfolio Funds A solution in their image For advisor use only. This document is not intended for public distribution.

2 Expertise of a truly global company Standard Life Mutual Funds Portrait Portfolio Funds are built by Standard Life Investments Inc. (SLI) Among the top-ranked portfolio management teams in Canada, with total assets of approximately $28.3 billion* under management. Recipient of the 2009 Benefits Canada award as the Fastest Growing Money Manager over $10 billion. Unparalleled approach to dividend management. Provides retail investors with the proven institutional management expertise normally reserved for large corporate clients. A subsidiary of Edinburgh-based Standard Life Investments Limited, a truly global investment company with offices throughout the world and $CDN billion under management. Independent research and a disciplined, teamwork-based investment process that has achieved proven results. * As of December 31, 2009 Standard Life Mutual Funds Ltd. 1

3 Standard Life Investments Inc. and Standard Life Investments Limited (SLI) With a global network enhanced by a presence in key markets, SLI has a clear understanding of worldwide investment issues. Its global platform provides SLI with the local insight required to target exceptional and consistent investment performance. Edinburgh Calgary Toronto Montreal Boston Dublin Paris London Beijing Seoul Mumbai Hong Kong Sydney Standard Life Investments Limited s offices around the world Ranked amongst the top 100 money managers in the world* Global team of over 200 investment professionals managing clients worldwide * As per P&I/Watson Wyatt World 500, October, Standard Life Mutual Funds Ltd. 2

4 Because no one knows what asset class will perform best in the next ten years Having an investment portfolio that contains the right asset classes is one way to ensure higher returns Canadian Bonds 13.0% Canadian Bonds 6.1% Canadian Bonds 11.1% Canadian 26.7% Canadian 14.5% Canadian 24.1% International 26.4% Canadian 9.8% Canadian 2.7% Canadian 35.1% Canadian 7.4% U.S. -6.4% Canadian -12.4% International 13.8% International 11.9% Canadian Bonds 13.8% Global 20.2% Canadian Bonds 3.4% International -21.9% International 12.5% U.S. -5.5% Global -11.3% International -16.5% Global 9.4% Canadian Bonds 10.3% International 11.2% Canadian 17.3% International -5.3% Global -25.4% Global 11.1% Global -9.9% Canadian -12.6% Global -20.4% Canadian Bonds 9.1% Global 6.9% Global 7.3% U.S. 15.7% Global -7.1% U.S % U.S. 8.1% International -11.0% International -16.5% U.S % U.S. 5.2% U.S. 3.3% U.S. 1.6% Canadian Bonds 4.1% U.S % Canadian Bonds -33.0% Canadian Bonds 5.5% MSCI EAFE ($C) International S&P/TSX Composite Canadian S&P 500 ($C) U.S. MSCI World ($C) Global Dex Long Term Bond Index Canadian Bonds Source: Morningstar, December 31, Standard Life Mutual Funds Ltd. 3

5 The advantages of global investing While your clients live in Canada, pay their bills in Canada and will most likely retire in Canada, it s important that they recognize the global market is much larger and more diversified. A globally diversified portfolio allows investors to benefit from lower overall portfolio risk and potential for increased returns. MSCI World (CAD) Index weighting, June 30, 2010 Canada USA 49.4% Euro Zone 13.4% Japan 10.5% UK 9.5% Europe Ex-Euro 5.8% Asia/Australia Ex-Japan 5.7% Canada 5.1% Other 0.6% Source: Morningstar, as of June 30, 2010 Standard Life Mutual Funds Ltd. 4

6 The benefits of a fully-diversified portfolio Growth of $10,000 over 25-year period ending Dec. 31, % Canadian 70% Canadian 30% U.S. 50% Canadian 30% U.S. 20% Canadian Bonds 30% Canadian 15% U.S. 15% International 40% Canadian Bonds $110,000 $105,000 $100,000 $95,000 $90,000 $91,523 $93,125 $99,419 $104,598 A portion of fixed income investments can ensure a well-diversified portfolio. A larger allocation in foreign markets can lead to better results. $85,000 $80,000 Source: Morningstar, December 31, Note: Canadian : S&P/TSX Composite U.S. : S&P 500 (CAD) Canadian Bonds: DEX Long-Term Bond International : MSCI EAFE (CAD) This is for illustration purposes only. Actual results may vary. Standard Life Mutual Funds Ltd. 5

7 and the added advantages of sector diversification By spreading their investments across various sectors, your clients can generally reduce their overall risk exposure. Sector weight (%) S&P/TSX Composite TR Index MSCI World (CAD) Index Consumer Discretionary 4.7% 9.9% Consumer Staples 2.6% 10.5% Energy 26.4% 10% Financial Services 30% 20.4% Health Care 0.5% 10.2% Industrials 5.7% 11% Information Technology 3% 12% Materials 20.7% 7.3% Telecommunication Services 4.5% 4.2% Utilities 1.8% 4.4% Source: Morningstar, as of June 30, Standard Life Mutual Funds Ltd. 6

8 Portrait Portfolio Funds Highlights Six pre-packaged portfolios that take into account risk tolerance and investment objectives. Diversified mix of investments built by Standard Life Investments Inc., a world-class portfolio management team. Portfolios designed to optimize the relationship between risk and potential return. and readjustment of portfolios according to market conditions. Competitive management fees. All portfolios are available through our T-Series, which provides tax-efficient income, and in Corporate Class, which may allow for deferral of capital gains tax when switching between portfolios. Active monitoring, periodic rebalancing Why invest in Portrait Portfolio Funds? Simplicity and peace of mind Diversification that reduces risk A portfolio of high quality funds Expertise of a truly global investment company Standard Life Mutual Funds Ltd. 7

9 Portrait Portfolio Funds Strike the right balance between risk and return 25% 100% 80% 20% 75% Aggressive Portfolio Global Portfolio Potential Return 40% 60% 60% 40% Growth Portfolio Dividend Growth & Income Portfolio Moderate Portfolio 30% 70% Conservative Portfolio Fixed Income Potential Risk Standard Life Mutual Funds Ltd. 8

10 A portfolio that suits their needs Different equity and fixed income portions in each of our Portrait Portfolio Funds make them suitable for different investor needs and objectives. Find out which Portrait Portfolio Fund suits your clients image. Conservative Portfolio Fixed Income 70% Canadian Equity 15% U.S. Equity 7.5% International Equity 7.5% Suitable for more conservative investors. Offers low volatility generated by high-quality fixed-income securities, coupled with the potential for growth. Moderate Portfolio Fixed Income 60% Canadian Equity 20% U.S. Equity 10% International Equity 10% Suitable for investors with a moderate risk tolerance. Focuses on fixed income. Provides a fair amount of protection against market volatility while offering long term growth potential. Growth Portfolio Fixed Income 40% Canadian Equity 30% U.S. Equity 15% International Equity 15% Suitable for growth-oriented investors. Emphasis on equities. Offers potential capital appreciation over the long term while maintaining sufficient diversification to minimize the impact of market fluctuations. Dividend Growth & Income Portfolio Aggressive Portfolio Global Portfolio Fixed Income 20% Canadian Equity 38% U.S. Equity 21% International Equity 21% Suitable for growth-oriented investors seeking long term capital appreciation and monthly distributions. Offers stability and reduced volatility through a proven dividend investment process. Fixed Income 25% Canadian Equity 35% U.S. Equity 20% International Equity 20% Suitable for investors willing to assume a higher degree of risk. Offers strong growth potential over time while maintaining some degree of protection against market downturns. U.S. Equity 49.8% European Equity 29.0% Asia & other 16.1% Canadian Equity 5.1% Suitable for investors seeking to diversify the equity component of their portfolio. Allows investors to capitalize on opportunities in global, international and emerging markets. Adjusted periodically according to the MSCI World Index. Allocation as of June 30, We reserve the right to make changes to the allocation without prior notice. Standard Life Mutual Funds Ltd. 9

11 Standard Life Investments Inc. Proven Process Unique People Stable team of motivated and experienced investment professionals aligned their clients interests and needs Defined Process Repeatable and disciplined team-based process with strong risk controls in a global management firm Consistent Performance Longer term focus with excellent performance and a consistent risk profile Standard Life Mutual Funds Ltd. 10

12 Making sure our portfolios continuously meet investors needs Portrait Portfolio Funds construction Portfolios are built according to various predetermined risk profiles A strategic target mix, outlining Fixed Income, U.S., Canadian and International, is put together for each portfolio Rebalancing and adjustments Portfolios are periodically rebalanced according to SLI s current market outlook Continuous monitoring Portfolios are monitored by a team of investment professionals Continuous assessment of market conditions allows for proactive portfolio positioning Standard Life Mutual Funds Ltd. 11

13 Corporate Class Helping you make the most of your non-registered investments Portrait Portfolio Funds are also available in a Corporate Class structure for your clients non-registered investments. Unlike traditional mutual fund trusts, which trigger tax events as assets are switched from one fund to another, switching within Corporate Class generally only triggers tax consequences when assets are redeemed. Until then, assets remain invested, compounding on a tax-deferred basis. Using Corporate Class to accumulate wealth allows your clients to effectively better control when they wish to incur a tax liability, possibly in a lower tax bracket. Each Portrait Portfolio is a share class within a corporation, allowing them to easily switch among the 6 Portfolios (as they approach retirement, for instance, and wish to move to a more conservative asset mix). $110,000 $95,000 $80,000 $65,000 Corporate Class: the benefit of tax-deferred switching Total after tax value of investment A in Corporate Class Structure: $107,946 Total after tax value of investment B in Trust Structure due to capital gains tax when switching: $94,595 Fund switch occurs Difference: $13,351 $50,000 invested in the Corporate Class versions (Investment A) of the same mutual fund trusts (Investment B) over a 10-year period results in an after-tax difference of $13,351. This is because Investment B pays capital gains tax on the fund switch in year 5. $50, Years 10 Assumes a net annual return of 8%, and that 50% of capital gains are taxed at a rate of 40% For information purposes only. Standard Life Mutual Funds Ltd. 12

14 Maintaining the right strategy can pay off Thanks to rebalancing, and tactical adjustments in keeping with the market outlook your clients can hold on to their investments and maintain their portfolio s asset allocation. A 60% /40% Fixed Income Portfolio (Growth Portfolio) Rebalancing vs. no rebalancing for the 25-year period ending December 31, 2009 $650,000 $550,000 Quarterly rebalancing No rebalancing $579,226 $450,000 $350,000 $522,990 $250,000 $150,000 $50, Source: Morningstar, December 31, For illustration purposes only. Based on a portfolio mix of 30% S&P/TSX Composite TR Index; 15% MSCI EAFE GR $C Index; 15% S&P 500 TR $C Index; and 40% DEX LT Bond Index. Standard Life Mutual Funds Ltd. 13

15 The benefits of investing in Portrait Portfolio Funds Portfolios and market conditions actively monitored Periodic rebalancing and readjustment of portfolios based on market outlook Diversified mix of investments managed by a world-class portfolio management team Portfolios designed to optimize the relationship between risk and potential return An investment solution that offers clients simplicity and peace of mind Portfolios built using high-quality Standard Life Mutual Funds Opportunities for tax-efficient income through T-Series, and for potential capital gains tax deferral when switching between portfolios using Corporate Class Standard Life Mutual Funds Ltd. 14

16 How to match the right portfolio to your client Complete the questionnaire with your client. Determine which Portrait Portfolio Fund best suits their risk profile and circumstances. We take care of the rest. All portfolios will be actively monitored, rebalanced and readjusted according to market conditions to ensure they stay on track. Portrait Portfolio Funds: a simple solution in their image that provides peace of mind Questionnaire

17 Sample Portrait Portfolio Funds Questionnaire (Available on Advisor Source) 1. Which of the following statements best describes the investment objectives for your portfolio? A. 10 To preserve capital B. 20 To generate investment income C. 30 To generate long-term capital growth while providing some investment income D. 40 To generate long-term capital growth 3. What is the likelihood that you will have to liquidate a significant amount of your investment prior to your indicated time horizon? A. 10 Very likely B. 20 Somewhat likely C. 30 Unlikely D. 40 Very unlikely Investment time horizon 2. What is your investment time horizon? In other words, when do you expect to use the money invested in this portfolio? A. 10 Less than 2 years B to 5 years C to 10 years D. 40 More than 10 years Risk tolerance 4. Which of the following statements best describes your attitude toward investing? A. 10 I would prefer a lower rate of return and a relatively stable portfolio to the volatility of stock market returns. B. 25 Although portfolio stability is important to me, I am willing to accept a certain level of volatility to earn a higher return. C. 40 I understand that investing in the stock markets could result in large fluctuations and even negative returns for an extended period, but I am willing to assume that risk in order to earn a higher return over the long-term. Standard Life Mutual Funds Ltd. 15

18 - Questionnaire 5. The charts below depict various return scenarios over a five-year period. Which of the portfolios would you feel most comfortable investing in? 20% 10% 0% -10% Portfolio A % 10% 0% -10% Portfolio B Hypothetically, what level of portfolio value decline over a one year period would prompt you to consider changing your investment strategy? A. 10 5% decline B % decline C % decline D % decline E. 50 I would maintain my investment strategy regardless of the level of decline. -20% 20% 10% 0% -10% -20% Portfolio C % Investment experience and knowledge 7. How would you best describe your level of investment experience and knowledge of investment products? A. 10 Novice: I have no previous investing experience and no knowledge of investment products. B. 20 Moderate: I have some investing experience and a basic knowledge of investment products. C. 30 High: I have more investing experience than most and an above-average knowledge of investment products. D. 40 Expert: I have extensive investing experience and investment product knowledge. A. 10 Portfolio A is focused on positive returns and stability. B. 25 Portfolio B will likely provide higher returns with a certain level of negative fluctuation. C. 40 Portfolio C seeks the maximum capital growth possible with higher levels of risk. Standard Life Mutual Funds Ltd. 16

19 - Questionnaire Financial situation 8. What portion of your total investable assets will this investment represent? A. 10 More than 75% B % to 75% C % to 49% D. 40 Less than 25% 9. What is your gross annual income? A. 10 Under $50,000 B. 20 $50,000 to $100,000 C. 30 $100,001 to $150,000 D. 40 Over $150,000 Total score Non-scoring questions 10. Which of the following statements best describes your portfolio income requirements? A. I need to use income derived from my portfolio to meet at least some of my current income needs. B. I do not require any income from my portfolio to meet my current income needs. 11. Which of the following statements best describes your comfort level with holding investments based outside Canada? A. I would not be comfortable with approximately 95% of my portfolio s equity investments based outside Canada. B. I would be comfortable with approximately 95% of my portfolio s equity investments based outside Canada. Total Score Recommended Portfolio Standard Life Conservative Portfolio Standard Life Moderate Portfolio Standard Life Growth Portfolio Standard Life Dividend Growth & Income Portfolio (if 10-A) 301+ Standard Life Dividend Growth & Income Portfolio (if 10-A) Standard Life Aggressive Portfolio Standard Life Global Portfolio* (if 11-B) * The Standard Life Global Portfolio is designed to provide a global solution for the equity portion of an investor s portfolio. This questionnaire is provided for general guidance only. All of the assumptions are used for illustration purposes only. The Standard Life Portrait Portfolio Funds will be invested according to pre-established targets. The funds will be rebalanced once per quarter or more frequently, if required. We also reserve the right to change the strategic target mix, target allocation, and to remove, replace or add funds to help maintain the investment objective of the portfolio. We will not notify you of these changes. Standard Life Mutual Funds Ltd. 17

20 Once the questionnaire has been completed, you can help your clients determine which Portrait Portfolio Fund best suits their needs. Following is a sample Investment Policy Statement for the Standard Life Growth Portfolio. Investment Policy Statement

21 Sample Investment Policy Statement* Introduction An investment policy statement (IPS) outlines your investment objectives and tolerance for risk and describes the appropriate investment strategies that will be used to manage your portfolio. As such, the following pages outline: Your specific objectives and risk tolerance; The investment guidelines of your recommended portfolio; The diversification of your recommended portfolio; An overview of the portfolio managers; How your portfolio will be monitored. This IPS is designed to document the parameters of how your money will be managed based on your specific objectives and risk tolerance. Since your objectives and risk tolerance may change over time, it is prudent that we periodically review your personal circumstances to ensure that this policy continues to meet your needs. Your investment objectives and risk tolerance Your investment objectives and risk tolerance can be summarized as follows: The investment objective of your portfolio is to generate some long-term capital growth while providing some investment income. The time horizon for this portfolio is 6 to 10 years. It is unlikely that you will have to liquidate a significant amount of your investment prior to your indicated time horizon. Although portfolio stability is important to you, you are willing to accept a certain level of volatility to earn a higher return. Of the sample portfolios illustrated below, you would be most comfortable investing in Portfolio B, a portfolio likely to provide higher returns with a certain level of negative fluctuation. 20% Portfolio A 20% Portfolio B 20% Portfolio C 10% 10% 10% 0% -10% % -10% % -10% % -20% -20% Hypothetically, a 15% decline in the value of your portfolio over a one year period would prompt you to consider changing your investment strategy. You have more investing experience than most and an above-average knowledge of investment products. This investment will represent between 25% and 49% of your total investable assets. Your gross annual income is between $100,001 and $150,000. You do not require any income from your portfolio to meet current needs. You would not be comfortable with approximately 95% of your portfolio s equity investments based outside Canada. *Results may vary Standard Life Mutual Funds Ltd. 18

22 Your recommended portfolio Standard Life Growth Portfolio Risk and reward are closely tied together in the world of investing. Generally, the higher an investment s potential reward, the higher its accompanying risk. Each Portrait Portfolio Fund is built using an optimal combination of equities and fixed income investments to maximize the potential return for a given level of risk tolerance. To meet your investment objectives while considering your risk tolerance, the Standard Life Growth Portfolio is recommended. This portfolio is ideal for investors looking to benefit from the potential growth of equity markets, while maintaining sufficient diversification to minimize the impact of market swings. The equity portion will have a bias towards large capitalization companies with solid fundamentals, giving you access to capital appreciation as well as to our proven investment expertise. The fixed income portion helps minimize portfolio volatility through high-quality investments. 25% 100% 80% 20% 75% Aggressive Portfolio Global Portfolio Potential Return 60% 40% Dividend Growth & Income Portfolio Growth Portfolio 30% 70% 40% 60% Moderate Portfolio Conservative Portfolio Fixed Income Potential Risk Standard Life Mutual Funds Ltd. 19

23 The diversification of your recommended portfolio Portfolio diversification is essential because no single asset class, geographic region or industry sector will always be the top performer. Without proper diversification, your portfolio is exposed to undue risk if a particular asset class, region or sector goes out of favour. An efficiently diversified portfolio, such as your Standard Life Growth Portfolio, will help to minimize this risk. The diversification of your Standard Life Growth Portfolio is detailed below. Strategic target mix The chart below indicates the target asset class allocation for your investments. % Assets Fixed income 40.0 Canadian Equity 30.0 U.S. Equity 15.0 International Equity 15.0 Investing a portion of your portfolio outside Canada provides the potential for return enhancement and risk reduction. Since Canada s markets only represent a small portion of the world s investment opportunities, it is important your portfolio capitalizes on growth opportunities that lie outside our borders. By the same token, a geographically diversified portfolio reduces risk by including regions that may respond differently to various market cycles and events. In line with your investment objectives and tolerance for risk, the geographic diversification of your Standard Life Growth Portfolio is outlined below. Within your Standard Life Growth Portfolio, each Standard Life Mutual Fund offers a distinct level of investment exposure to different geographic regions and industry sectors. The Standard Life Mutual Funds in your portfolio are optimally combined to provide you with the following overall geographic and sector exposure. Geographic diversification (as at June 30, 2010) Top 5 Countries % Assets Canada 63.3 United States 21.4 United Kingdom 3.1 India 2.6 Japan 2.1 Standard Life Mutual Funds Ltd. 20

24 Similar to geographic diversification, diversifying your investments across several industrial sectors not only gives your portfolio the potential for higher returns but also the opportunity to reduce risk. Due to the significant difference in how the various industrial sectors operate, their performances never move in tandem. As such, holding investments in different sectors offers you a chance to potentially enhance portfolio returns and diversify your risks. In line with your investment objectives and tolerance for risk, the sector diversification of your Standard Life Growth Portfolio is outlined below. Sector diversification (as at June 30, 2010) % Assets Government Bonds 16.9 Financials 14.7 Energy 11.9 Corporate Bonds 10.6 Materials 9.3 Industrial 9.0 Consumer Discretionary 6.3 Information Technology 5.2 Consumer Staples 4.1 Health Care 3.6 ST Investments (Cash & Equivalents) 3.0 Other bonds 2.2 Telecommunications Services 1.8 Utilities 1.2 Unclassified 0.3 Standard Life Mutual Funds Ltd. 21

25 To achieve the asset class, geographic and sector diversification outlined, your Standard Life Growth Portfolio invests in a series of Standard Life Mutual Funds as shown here. Fund diversification (as of June 30, 2010) Standard Life Mutual Fund % Assets Standard Life Canadian Bond Fund 21.3 Standard Life Canadian Equity Fund 13.0 Standard Life Canadian Small Cap Fund 9.5 Standard Life Canadian Equity Focus Fund 9.4 Standard Life International Equity Fund 7.5 Standard Life U.S. Mid Cap Fund 7.3 Standard Life U.S. Equity Focus Fund 8.5 Standard Life Global Equity Focus Fund 6.0 Standard Life International Bond Fund 6.0 Standard Life Dividend Income Fund 5.0 Standard Life Global Monthly Income Fund 4.0 Standard Life India Equity Fund 2.5 The asset mix information on this page is updated periodically. For the most recent fund overviews, please refer to the Marketing Materials page of our Advisor Source website. Standard Life Mutual Funds Ltd. 22

26 Your portfolio managers Standard Life Investments Inc. Proven investment management with global reach Standard Life Investments Inc. (SLI) is the portfolio management team behind the Portrait Portfolio Funds. Since 1973, SLI has been managing the pension and investment assets of millions of Canadians. By participating in these portfolio funds, you will gain access to this proven investment expertise the same expertise that was once primarily available to major pension funds and institutional investors. Investment process SLI has a robust and repeatable investment process, supported by a team culture and philosophy. The investment process combines asset allocation, stock selection, portfolio construction and risk management. Global reach. Local insight. Exceptional investment performance. Standard Life Investments Inc. (SLI) is a subsidiary of Edinburghbased Standard Life Investments Limited, one of the world s major asset management companies. With a global investment network, enhanced by a presence on the ground in key markets, they have a clear understanding of worldwide investment issues. Their people in local offices around the world share their knowledge with a common investment philosophy called Focus on Change. This way, for example, their Hong Kong based analysts exchange ideas with the teams in North America and the UK, ensuring their analysis is rigorously scrutinized. In doing so, they seek to make the most of their local knowledge. Their success is founded in a disciplined team approach that favours proprietary research, risk exposure in tune with their clients risk tolerance, and a highly effective decision-making process. Because their approach is team-oriented rather than guru-driven, you benefit from the expertise of the total investment management group. Portfolio monitoring process Your portfolio is regularly monitored and modifications may be made as a result of evolving market conditions. Rebalancing occurs to ensure that your portfolio remains in-line with your asset mix at the time of initial investment, while taking into account any major changes in the marketplace. Standard Life Mutual Funds Ltd. 23

27 Investor s acknowledgment of the investment policy statement I confirm that this Investment Policy Statement (IPS) accurately reflects my investment objectives and tolerance for risk. As my investment objectives and tolerance for risk may change over time, I will keep my advisor informed of any changes that might influence my investment strategy. I wish to invest in the Portrait Portfolio Funds with the strategic asset allocation proposed in this Investment Policy Statement. I understand that past performance may not be repeated and will fluctuate over time. Investor s signature Advisor s signature Date Sample Date The Portrait Portfolio Funds will be invested according to pre-established targets. The funds will be rebalanced once per quarter or more frequently, if required. We also reserve the right to change the strategic target mix, target allocation, and to remove, replace or add funds to help maintain the investment objective of the portfolio. We will not notify you of these changes. Portrait Portfolio Funds are offered by Standard Life Mutual Funds Ltd. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not quaranteed, their values change frequently and past performance may not be repeated. Standard Life Mutual Funds Ltd. 24

28 Portfolio overviews

29 Standard Life Conservative Portfolio Strategic target mix Fixed Income 70% Canadian Equity 15% U.S. Equity 7.5% International Equity 7.5% Consider this portfolio if you: have a low to moderate risk tolerance and your primary objective is capital preservation with some capital appreciation seek a combination of income and growth have an investment horizon of at least 3 to 5 years Investment experts devoted to the portfolio Asset mix built by award-winning portfolio management team, Standard Life Investments Inc. Portfolio is actively monitored, rebalanced and adjusted according to market conditions to ensure it remains on track Proven investment approach with global reach Independent thinking, in-house research and a proven disciplined team-based investment process Range of asset classes and geographic regions providing optimal diversification Leading investment company with offices around the world, applying a truly global perspective to our investment process 25% 100% Conservative Portfolio This portfolio is ideal for risk conscious investors seeking low volatility provided by fixed income, as well as the opportunity for moderate capital growth through diversified equity investments. The fixed income portion is designed to minimize risk by providing capital protection through high-quality investments. The equity portion will have a bias towards large capitalization companies with solid fundamentals, giving you access to capital appreciation as well as to our proven investment expertise. Potential Return 40% 60% 60% 40% 80% 20% Growth Portfolio 75% Dividend Growth & Income Portfolio Aggressive Portfolio Global Portfolio Portrait Portfolio Funds are made-up of carefully chosen investments and are monitored periodically to ensure that the optimal balance between risk and return is achieved. 30% 70% Conservative Portfolio Moderate Portfolio Potential Risk Fixed Income Consider our T-Series for a tax-efficient monthly income and Corporate Class for potential capital gains tax-deferral when switching between funds. Standard Life Mutual Funds Ltd. 25

30 Tactical asset allocation % Net assets Diversified by region Canadian Bond Fund 51.3% Canadian Equity Fund 11.4% Dividend Income Fund 9.5% U.S. Dividend Growth Fund 8.0% International Bond Fund 5.5% Diversified Income Fund 5.0% Global Monthly Income Fund 4.5% International Equity Fund 2.8% Global Dividend Growth Fund 2.0% As of June 30, Fund codes A-Series T-Series Corporate Class E-Series Legend Series Front-end charge SLM240 SLM240T SLM240S SLM840 SLM440 Deferred sales charge SLM040 SLM040T SLM040S Low sales charge SLM140 SLM140T SLM140S The Standard Life Conservative Portfolio overview is also available on Advisor Source. Canada 74.3% International 13.7% United States 12.0% As of June 30, 2010 Diversified by fund family Fixed Income Funds 56.8% Dividend Funds 19.5% Canadian Equity Funds 11.4% Monthly Income Funds 9.5% Global Equity Funds 2.8% As of June 30, 2010 Minimum investment A-Series $10,000 T-Series $10,000 Corporate Class $10,000 E-Series $100,000 Legend Series $250,000 The asset mix information on this page is updated periodically. For the most recent fund overviews, please refer to the Marketing Materials page of our Advisor Source website. We reserve the right to modify, without prior notice, the tactical mix, percentage range and choice of funds as long as the change respects the objectives of the portfolio. Your portfolio will be rebalanced periodically to the tactical mix then in effect. Other terms and conditions may apply. Please refer to the Funds simplified prospectus for details. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Standard Life Mutual Funds Ltd. 26

31 Standard Life Moderate Portfolio Strategic target mix Consider this portfolio if you: Fixed Income 60% Canadian Equity 20% U.S. Equity 10% International Equity 10% have a low to moderate risk tolerance and your objective is to achieve a balance between capital preservation and long-term capital growth seek a balanced combination of fixed income and equity funds have an investment horizon of at least 3 to 5 years Investment experts devoted to the portfolio Asset mix built by award-winning portfolio management team, Standard Life Investments Inc. Portfolio is actively monitored, rebalanced and adjusted according to market conditions to ensure it remains on track Proven investment approach with global reach Independent thinking, in-house research and a proven disciplined team-based investment process Range of asset classes and geographic regions providing optimal diversification Leading investment company with offices around the world, applying a truly global perspective to our investment process 25% 100% Moderate Portfolio This portfolio is ideal for investors seeking the potential for long-term capital growth, with fixed income that offers protection against market downturns. The fixed income portion helps minimize portfolio volatility through highquality investments. The equity portion will have a bias towards large capitalization companies with solid fundamentals, giving you access to capital appreciation as well as to our proven investment expertise. Portrait Portfolio Funds are made-up of carefully chosen investments and are monitored periodically to ensure that the optimal balance between risk and return is achieved. Potential Return 30% 70% 40% 60% Conservative Portfolio 60% Moderate Portfolio 40% 80% 20% Growth Portfolio Dividend Growth & Income Portfolio Potential Risk 75% Aggressive Portfolio Global Portfolio Fixed Income Consider our T-Series for a tax-efficient monthly income and Corporate Class for potential capital gains tax-deferral when switching between funds. Standard Life Mutual Funds Ltd. 27

32 Tactical asset allocation % Net assets Diversified by region Canadian Bond Fund 41.3% Canadian Equity Fund 12.5% U.S. Dividend Growth Fund 9.2% Canadian Equity Focus Fund 6.0% International Bond Fund 6.0% Dividend Income Fund 5.5% Diversified Income Fund 5.0% International Equity Fund 4.0% Global Monthly Income Fund 4.0% Global Dividend Growth Fund 3.5% Global Equity Focus Fund 3.0% As of June 30, Fund codes A-Series T-Series The Standard Life Moderate Portfolio overview is also available on Advisor Source. Corporate Class E-Series Legend Series Front-end charge SLM241 SLM241T SLM241S SLM841 SLM441 Deferred sales charge SLM041 SLM041T SLM041S Low sales charge SLM141 SLM141T SLM141S Canada 69.3% International 16.2% United States 14.5% As of June 30, Diversified by fund family Fixed Income Funds 47.3% Dividend Funds 18.2% Canadian Equity Funds 12.5% Focus Funds 9.0% Monthly Income Funds 9.0% Global Equity Funds 4.0% As of June 30, Minimum investment A-Series $10,000 T-Series $10,000 Corporate Class $10,000 E-Series $100,000 Legend Series $250,000 The asset mix information on this page is updated periodically. For the most recent fund overviews, please refer to the Marketing Materials page of our Advisor Source website. We reserve the right to modify, without prior notice, the tactical mix, percentage range and choice of funds as long as the change respects the objectives of the portfolio. Your portfolio will be rebalanced periodically to the tactical mix then in effect. Other terms and conditions may apply. Please refer to the Funds simplified prospectus for details. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Standard Life Mutual Funds Ltd. 28

33 Standard Life Growth Portfolio Strategic target mix Consider this portfolio if you: Fixed Income 40% Canadian Equity 30% U.S. Equity 15% International Equity 15% have a moderate risk tolerance and your objective is long-term capital growth seek a combination of long-term capital appreciation through a combination of equities and fixed income have an investment horizon of at least 3 to 5 years Investment experts devoted to the portfolio Asset mix built by award-winning portfolio management team, Standard Life Investments Inc. Portfolio is actively monitored, rebalanced and adjusted according to market conditions to ensure it remains on track Proven investment approach with global reach Independent thinking, in-house research and a proven disciplined team-based investment process Range of asset classes and geographic regions providing optimal diversification Leading investment company with offices around the world, applying a truly global perspective to our investment process 25% 100% Growth Portfolio This portfolio is ideal for investors looking to benefit from the potential growth of equity markets, while maintaining sufficient diversification to minimize the impact of market swings. The equity portion will have a bias towards large capitalization companies with solid fundamentals, giving you access to capital appreciation as well as to our proven investment expertise. The fixed income portion helps minimize portfolio volatility through highquality investments. Potential Return 40% 60% 60% 40% 80% 20% Growth Portfolio 75% Dividend Growth & Income Portfolio Aggressive Portfolio Global Portfolio Portrait Portfolio Funds are made-up of carefully chosen investments and are monitored periodically to ensure that the optimal balance between risk and return is achieved. 30% 70% Conservative Portfolio Moderate Portfolio Potential Risk Fixed Income Consider our T-Series for a tax-efficient monthly income and Corporate Class for potential capital gains tax-deferral when switching between funds. Standard Life Mutual Funds Ltd. 29

34 Tactical asset allocation % Net assets Diversified by region Canadian Bond Fund 21.3% Canadian Equity Fund 13.0% Canadian Small Cap Fund 9.5% Canadian Equity Focus Fund 9.4% U.S. Equity Focus Fund 8.5% International Equity Fund 7.5% U.S. Mid Cap Fund 7.3% Global Equity Focus Fund 6.0% International Bond Fund 6.0% Dividend Income Fund 5.0% Global Monthly Income Fund 4.0% India Equity Focus Funds 2.5% As of June 30, Fund codes A-Series T-Series Corporate Class The Standard Life Growth Portfolio overview is also available on Advisor Source. E-Series Legend Series Front-end charge SLM242 SLM242T SLM242S SLM842 SLM442 Deferred sales charge SLM042 SLM042T SLM042S Low sales charge SLM142 SLM142T SLM142S Canada 59.3% International 21.2% United States 19.5% As of June 30, Diversified by fund family Fixed Income Funds 27.3% Focus Funds 26.4% Canadian Equity Funds 22.5% Global Equity Funds 14.8% Dividend Funds 5.0% Monthly Income Funds 4.0% As of June 30, Minimum investment A-Series $10,000 T-Series $10,000 Corporate Class $10,000 E-Series $100,000 Legend Series $250,000 The asset mix information on this page is updated periodically. For the most recent fund overviews, please refer to the Marketing Materials page of our Advisor Source website. We reserve the right to modify, without prior notice, the tactical mix, percentage range and choice of funds as long as the change respects the objectives of the portfolio. Your portfolio will be rebalanced periodically to the tactical mix then in effect. Other terms and conditions may apply. Please refer to the Funds simplified prospectus for details. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Standard Life Mutual Funds Ltd. 30

35 Standard Life Dividend Growth & Income Portfolio Strategic target mix Consider this portfolio if you: Fixed Income 20% Canadian Equity 38% U.S. Equity 21% International Equity 21% have a moderate to high risk tolerance and your objective is long term capital growth with a fixed monthly distribution seek lower volatility and long-term capital growth through award winning dividend expertise and monthly income fund management experience have an investment horizon of at least 3 to 5 years Dividend Growth & Income Portfolio This portfolio is ideal for investors who want to benefit from the dividend and monthly income fund expertise of a global manager. It offers stability and mitigates volatility through a proven dividend investment process. The equity portion will have a bias towards large dividend-paying companies with solid fundamentals, giving you access to capital appreciation. The fixed income portion helps minimize portfolio volatility by focusing on high-quality income-producing investments. Portrait Portfolio Funds are made-up of carefully chosen investments and are monitored periodically to ensure that the optimal balance between risk and return is achieved. Investment experts devoted to the portfolio Asset mix built by award-winning portfolio management team, Standard Life Investments Inc. Portfolio is actively monitored, rebalanced and adjusted according to market conditions to ensure it remains on track Potential Return 30% 70% 40% 60% Conservative Portfolio 60% Moderate Portfolio 40% 80% Proven investment approach with global reach Independent thinking, in-house research and a proven disciplined team-based investment process Range of asset classes and geographic regions providing optimal diversification Leading investment company with offices around the world, applying a truly global perspective to our investment process 20% Growth Portfolio Dividend Growth & Income Portfolio Potential Risk 75% 25% Aggressive Portfolio 100% Global Portfolio Fixed Income Consider our T-Series for a tax-efficient monthly income and Corporate Class for potential capital gains tax-deferral when switching between funds. Standard Life Mutual Funds Ltd. 31

36 Tactical asset allocation % Net assets Diversified by region Global Dividend Growth Fund 31.1% Monthly Income Fund 24.0% Canadian Dividend Growth Fund 21.4% Global Monthly Income Fund 16.0% U.S. Dividend Growth Fund 7.5% Canada 52.8% United States 26.1% International 21.0% As of June 30, As of June 30, Diversified by fund family Fund codes A-Series T-Series Corporate Class E-Series Legend Series Front-end charge SLM244 SLM244T SLM244S SLM844 SLM444 Deferred sales charge SLM044 SLM044T SLM044S Low sales charge SLM144 SLM144T SLM144S Dividend Funds 60.0% Monthly Income Funds 40.0% As of June 30, Minimum investment A-Series $10,000 T-Series $10,000 Corporate Class $10,000 E-Series $100,000 Legend Series $250,000 The Standard Life Dividend Growth & Income Portfolio overview is also available on Advisor Source. The asset mix information on this page is updated periodically. For the most recent fund overviews, please refer to the Marketing Materials page of our Advisor Source website. We reserve the right to modify, without prior notice, the tactical mix, percentage range and choice of funds as long as the change respects the objectives of the portfolio. Your portfolio will be rebalanced periodically to the tactical mix then in effect. Other terms and conditions may apply. Please refer to the Funds simplified prospectus for details. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Standard Life Mutual Funds Ltd. 32

37 Standard Life Aggressive Portfolio Strategic target mix Consider this portfolio if you: Fixed Income 25% Canadian Equity 35% U.S. Equity 20% International Equity 20% have a moderately higher risk tolerance and your objective is long-term capital growth seek a combination of long-term capital appreciation achieved by a higher emphasis on equities complemented by a moderate level of income have an investment horizon of at least 3 to 5 years Aggressive Portfolio This portfolio is ideal for investors willing to take on a higher degree of risk. It offers strong growth potential over time, while maintaining some degree of protection against market fluctuations. The equity portion will have a bias towards large capitalization companies with solid fundamentals, giving you access to capital appreciation as well as to our proven investment expertise. Investment experts devoted to the portfolio Asset mix built by award-winning portfolio management team, Standard Life Investments Inc. Portfolio is actively monitored, rebalanced and adjusted according to market conditions to ensure it remains on track Potential Return 60% 40% 80% Proven investment approach with global reach Independent thinking, in-house research and a proven disciplined team-based investment process Range of asset classes and geographic regions providing optimal diversification Leading investment company with offices around the world, applying a truly global perspective to our investment process 20% Growth Portfolio 75% 25% Dividend Growth & Income Portfolio Aggressive Portfolio 100% Global Portfolio The fixed income portion helps minimize portfolio volatility through highquality investments. Portrait Portfolio Funds are made-up of carefully chosen investments and are monitored periodically to ensure that the optimal balance between risk and return is achieved. 30% 70% 40% 60% Conservative Portfolio Moderate Portfolio Potential Risk Fixed Income Consider our T-Series for a tax-efficient monthly income and Corporate Class for potential capital gains tax-deferral when switching between funds. Standard Life Mutual Funds Ltd. 33

38 Tactical asset allocation % Net assets Diversified by region Canadian Equity Fund 14.7% International Equity Fund 12.3% Canadian Bond Fund 11.3% Canadian Small Cap Fund 11.0% Canadian Equity Focus Fund 11.0% U.S. Equity Focus Fund 11.0% U.S. Mid Cap Fund 9.2% Global Equity Focus Fund 7.0% Dividend Income Fund 5.0% International Bond Fund 5.0% India Equity Focus Funds 2.5% As of June 30, Fund codes A-Series T-Series Corporate Class E-Series Legend Series Front-end charge SLM243 SLM243T SLM243S SLM843 SLM443 Deferred sales charge SLM043 SLM043T SLM043S Low sales charge SLM143 SLM143T SLM143S The Standard Life Aggressive Portfolio overview is also available on Advisor Source. Canada 54.3% United States 24.5% International 21.2% As of June 30, Diversified by fund family Focus Funds 31.5% Canadian Equity Funds 25.7% Global Equity Funds 21.5% Fixed Income Funds 16.3% Dividend Funds 5.0% As of June 30, Minimum investment A-Series $10,000 T-Series $10,000 Corporate Class $10,000 E-Series $100,000 Legend Series $250,000 The asset mix information on this page is updated periodically. For the most recent fund overviews, please refer to the Marketing Materials page of our Advisor Source website. We reserve the right to modify, without prior notice, the tactical mix, percentage range and choice of funds as long as the change respects the objectives of the portfolio. Your portfolio will be rebalanced periodically to the tactical mix then in effect. Other terms and conditions may apply. Please refer to the Funds simplified prospectus for details. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Standard Life Mutual Funds Ltd. 34

39 Standard Life Global Portfolio Strategic target mix* Consider this portfolio if you: U.S. Equity 49.8% European Equity 29.0% Asia & other 16.1% Canadian Equity 5.1% * Adjusted periodically according to the MSCI World Index. Current target mix as of June 30,2010 have a moderately higher risk tolerance and your primary objective is to achieve full global diversification for the equity portion of your portfolio, as well as obtain long-term capital appreciation seek a portfolio that reduces country and region specific risks through a globally diversified portfolio have an investment horizon of at least 3 to 5 years Global Portfolio This portfolio is ideal for investors seeking a global solution for the equity portion of their portfolio, backed by a truly global investment management team with offices worldwide. Thanks to its diversification, this portfolio reduces the risks associated with global investing. The portfolio management team is supported by multiple investment operations around the world. This portfolio offers the benefits of diversification by providing exposure to global, international and emerging markets. With a 100% focus on equities, it allows you to participate in the long-term growth of economies around the world. Portrait Portfolio Funds are made-up of carefully chosen investments and are monitored periodically to ensure that the optimal balance between risk and return is achieved. Investment experts devoted to the portfolio Asset mix built by award-winning portfolio management team, Standard Life Investments Inc. Portfolio is actively monitored, rebalanced and adjusted according to market conditions to ensure it remains on track Potential Return 30% 70% 40% 60% Conservative Portfolio 60% Moderate Portfolio 40% 80% Proven investment approach with global reach Independent thinking, in-house research and a proven disciplined team-based investment process Range of asset classes and geographic regions providing optimal diversification Leading investment company with offices around the world, applying a truly global perspective to our investment process 20% Growth Portfolio Dividend Growth & Income Portfolio Potential Risk 75% 25% Aggressive Portfolio 100% Global Portfolio Fixed Income Consider our T-Series for a tax-efficient monthly income and Corporate Class for potential capital gains tax-deferral when switching between funds. Standard Life Mutual Funds Ltd. 35