Standard Life Ireland MyFolio funds

Transcription

1 February 2018 Standard Life Ireland MyFolio funds Strategic Asset Allocation changes

2 Strategic Asset Allocation changes Every quarter, Standard Life Investments, in consultation with Moody s Analytics, a global leader in risk and asset modelling, formally reviews the Strategic Asset Allocation (SAA) for each MyFolio fund. The aim is to ensure that risk levels do not vary significantly over time, while also seeking to optimise the return that investors receive for their chosen level of risk. At the most recent review, it was concluded that a change in asset allocation would potentially improve the prospects for long-term risk-adjusted returns. The most significant changes are as follows: Defensive assets Reduction in European Corporate Bonds Introduction of Global Corporate Bonds (Euro hedged) and Global Short-Dated Corporate Bonds (Euro hedged) Increase in Absolute Return Bond Fund exposure for MyFolio Active funds Growth assets Reduction in UK commercial property Increase in Global REITs (Euro hedged) Equity reallocation to more global exposure Overview of changes Each MyFolio fund invests in a mix of defensive and growth asset classes. The risk, reward and correlations between asset classes can change over time and it is important that we understand the implications of this within the SAA. At the most recent review, we added two new defensive asset classes Global Corporate Bonds and short-dated Global Corporate Bonds, both hedged back to Euros to provide further diversification. Introducing Global Corporate Bonds (both all-maturity and short duration) enables the MyFolio funds to access a larger and more liquid bonds universe. The global corporate bond market is currently over ten times the size of the sterling market. Investment here therefore serves to both diversify risk and broaden each fund s range of return sources. Within the growth assets, we added Global REITs (Euro hedged) as a longer-term strategic holding. We have invested in Global REITs as a tactical position for over a year and now feel it is appropriate to make the asset class a permanent feature of the strategic asset mix. This will provide the funds with improved liquidity and enhanced diversification across global property markets. In addition, we made a small number of minor re-allocations within the defensive and growth assets classes. However, the overall split remains broadly consistent. The SAA changes are effective immediately and detailed in the tables on the following pages. 02/16 Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February 2018

3 MyFolio Active funds MyFolio Active I Absolute Return Bonds 6.6% 8.0% 0.6% 6.7% 12.4% 4.9% 0.0% 14.5% 0.0% 4.8% 45.9% 19.3% 7.3% 14.5% 72.8% 72.7% Europe ex Multi-Asset Absolute Return 1.0% 1.0% 3.8% 4.4% 6.0% 5.2% 1.2% 1.4% 1.0% 1.1% 1.0% 1.1% 2.2% 2.2% 2.2% 2.2% 1.7% 1.0% 1.7% 2.2% 5.4% 5.5% 27.2% 27.3% Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February /16

4 MyFolio Active funds MyFolio Active II Absolute Return Bonds 3.2% 1.0% 0.0% 2.0% 10.4% 6.4% 0.0% 12.3% 0.0% 4.2% 31.4% 16.6% 5.0% 10.5% 50.0% 53.0% Europe ex Multi-Asset Absolute Return 1.8% 1.8% 6.6% 7.8% 12.4% 9.7% 2.1% 2.5% 1.7% 1.9% 1.7% 1.9% 4.0% 3.8% 3.7% 2.6% 2.8% 1.8% 3.2% 3.8% 10.0% 9.4% 50.0% 47.0% 04/16 Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February 2018

5 MyFolio Active funds MyFolio Active III Absolute Return Bonds 1.0% 1.0% 7.0% 0.0% 0.0% 10.3% 0.0% 3.5% 18.4% 13.9% 2.9% 7.2% 29.3% 35.9% Europe ex Multi-Asset Absolute Return 2.5% 2.8% 9.3% 11.5% 18.6% 15.0% 2.9% 3.7% 2.3% 2.9% 2.3% 2.9% 5.7% 3.3% 4.6% 1.5% 4.0% 2.6% 4.4% 5.1% 14.1% 12.8% 70.7% 64.1% Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February /16

6 MyFolio Active funds MyFolio Active IV Absolute Return Bonds 1.0% 1.0% 2.1% 0.0% 0.0% 5.1% 0.0% 1.8% 6.9% 6.9% 1.1% 3.6% 11.1% 18.4% Europe ex Multi-Asset Absolute Return 3.2% 3.6% 12.1% 15.0% 24.9% 19.6% 3.8% 4.8% 3.0% 3.8% 3.0% 3.8% 6.1% 3.3% 4.2% 1.6% 5.1% 3.2% 5.7% 6.6% 17.8% 16.3% 88.9% 81.6% 06/16 Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February 2018

7 MyFolio Active funds MyFolio Active V Absolute Return Bonds 1.0% 1.0% 0.0% 2.0% 2.0% 0.0% 3.0% 3.0% Europe ex Multi-Asset Absolute Return 4.0% 4.6% 15.0% 18.9% 34.7% 25.3% 4.6% 6.0% 3.8% 4.7% 3.8% 4.7% 0.0% 1.8% 4.6% 3.8% 7.1% 7.8% 19.4% 19.4% 97.0% 97.0% Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February /16

8 MyFolio Market funds MyFolio Market I 7.3% 10.0% 13.8% 6.1% 0.0% 18.1% 0.0% 6.0% 0.7% 8.4% 51.0% 24.1% 72.8% 72.7% 1.3% 1.3% 4.7% 5.5% Europe ex 7.7% 6.6% 1.5% 1.7% 1.2% 1.4% 1.2% 1.4% 2.1% 1.3% 2.1% 2.7% 2.7% 2.7% 2.7% 2.7% 27.2% 27.3% 08/16 Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February 2018

9 MyFolio Market funds MyFolio Market II 3.6% 1.0% 11.5% 8.1% 0.0% 15.5% 0.0% 5.2% 0.0% 2.5% 34.9% 20.7% 50.0% 53.0% 2.2% 2.3% 8.3% 9.7% Europe ex 15.5% 12.2% 2.6% 3.1% 2.1% 2.4% 2.1% 2.4% 3.5% 2.3% 4.1% 4.7% 5.0% 4.7% 4.6% 3.2% 50.0% 47.0% Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February /16

10 MyFolio Market funds MyFolio Market III 1.0% 1.0% 7.8% 0.0% 0.0% 13.0% 0.0% 4.4% 20.5% 17.5% 29.3% 35.9% 3.1% 3.5% 11.6% 14.4% Europe ex 23.1% 18.80% 3.6% 4.6% 2.9% 3.6% 2.9% 3.6% 5.0% 3.2% 5.6% 6.4% 7.1% 4.1% 5.8% 1.9% 70.7% 64.1% 10/16 Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February 2018

11 MyFolio Market funds MyFolio Market IV 1.0% 1.0% 2.3% 0.0% 0.0% 6.5% 0.0% 2.2% 7.8% 8.7% 11.1% 18.4% 4.0% 4.5% 15.1% 18.8% Europe ex 31.3% 24.6% 4.7% 6.0% 3.8% 4.7% 3.8% 4.7% 6.4% 4.0% 7.0% 8.2% 7.6% 4.1% 5.2% 2.0% 88.9% 81.6% Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February /16

12 MyFolio Market funds MyFolio Market V 1.0% 1.0% 0.0% 2.0% 2.0% 0.0% 3.0% 3.0% 5.0% 5.7% 18.8% 23.6% Europe ex 43.4% 31.7% 5.8% 7.5% 4.7% 5.9% 4.7% 5.9% 5.8% 4.8% 8.8% 9.7% 0.0% 2.2% 97.0% 97.0% 12/16 Standard Life Ireland MyFolio funds - Strategic Asset Allocation changes - February 2018

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16 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. MFSAA V Standard Life Aberdeen. All rights reserved.