STANDARD LIFE INVESTMENTS MYFOLIO MANAGED III RET PLATFORM 1 ACC April 2016 Outcome: Capital Accumulation Risk Targeted Multi Asset Solutions Sector: Domicile: United Kingdom Risk Based Approach: Rating: Recommended Currency: GBP Fund Size (as at 20 Apr 2016): 2,127m Fund Manager Name: Bambos Hambi Investment Style: Active Fund Selection Approach: Manager of Manager Distribution Pay Date: Jul 01 (Final) Ongoing Charge Figure: 1.05% Annual Management Charge: 0.40% Maximum Drawdown: 5.67 Yield (as at 20 Apr 2016): 1.4% Volatility: 5.70% Financial Express Crown Rating: Financial Express Alpha Manager Rating: N Fund Price: 67.2 pence Launch Date: 22/09/2010 Fund Outcome The fund aims to provide capital accumulation whilst carefully controlling the longer term level of volatility. The fund will do this by investing in a broad range of asset classes including bonds, property, equity and cash, as well as a number of absolute return strategies to attempt to dampen the overall level of volatility of the fund. In practice it is expected that the fund will deliver a level of volatility somewhere between equities and bonds. Investors should be aware that over the shorter term, and following periods of financial market stress, the fund may exhibit a level of volatility that is outside of its stated range and inconsistent with that expected from the longer term mix of assets. Outcomes Capital Accumulation Capital Preservation Income Inflation Protection
Fund Opinion This fund is part of a strong overall risk targeted proposition offered by Standard Life Investments. The three main facets to the fundâ s strategy, strategic asset allocation, tactical asset allocation and fund selection, are all well resourced and contain suitably experienced individuals. This includes the SLI Multi Asset Investment team, responsible for the very successful Global Absolute Return Strategy (GARS) product, who provide the tactical asset allocation overlay. The whole process is overseen and controlled by a committee of senior executives within SLI. The structure of the fund, whereby it will invest predominantly in Standard Life funds, could mean that at times the manager may lack the flexibility to diversify across investment styles meaning the portfolio could have a bias to a smaller number of themes and ideas than if he were able to select funds from the whole of the market. On the other hand the lower costs associated with this approach should be less of a drag on returns than investing outside of the group. Over the longer term and given the breadth of talent and range of strategies from within the group which the team has to select from we believe the fund can deliver an outcome for clients which should meet their expectations. Fund Description Portfolio manager, Bambos Hambi, is Head of Fund of Funds at Standard Life Investments (SLI), having joined the group in 2011. Prior to this, he held a number of senior fund management positions, including roles with Gartmore, Insight and Rothschild, all covering multi manager investment. He is directly supported by the well resourced Fund Solutions Team, which has grown steadily in numbers over recent years, as well as the wider SLI group. SLI manage a wide range of investment solutions which are all backed by their distinctive 'Focus on Change' investment philosophy, disciplined risk management and commitment to providing high quality investment outcomes. As active managers, a significant amount of emphasis is placed on rigorous research and a strong collaborative ethos. They attempt to anticipate change before it happens, ensuring funds are always forward looking. The Standard Life MyFolio Fund range was specifically designed to help clients better differentiate one fund from another, particularly with regard to risk and reward, as well as provide investors with a choice of styles and approaches to achieve this. The MyFolio Managed range consists of five multi asset, actively managed funds which invest predominantly in Standard Life group funds. The lowest risk fund in the range is designed to provide a level of risk and return which is moderately greater than cash and the highest risk fund a level of volatility similar to that of UK equities but with a superior return. The other three funds in the range are expected to fall at broadly equal intervals between these two funds. MyFolio III is the middle risk fund in the range and it will be invested in a diverse range of investments which have been carefully selected in order to provide the highest level of return within the specified level of risk. SLI work in conjunction with Moody's Analytics, a leading provider of financial market solutions, to build the longer term asset allocations for the funds, and consult with them on a quarterly basis. SLI modify the allocation from Moody's Analytics, investing between 10 20% of the total portfolio in absolute return strategies to attempt to dampen overall volatility. Property exposure is limited to a total of 15%. Deviations from the broad long term asset class model are made in order to take advantage of opportunities over the shorter term, although these are not expected to be significant. This helps to ensure that the portfolio is always highly diversified across different types of assets. The SLI Multi Asset Investment team is responsible for determining these shorter term positions. The Fund Solutions Team is responsible for selecting the underlying investments which make up the portfolio, predominantly using actively managed funds from SLI's own range of funds. The team seek to blend funds which reflect the characteristics of each asset class within the model, but which should provide a higher level of return than the market. Funds are generally selected with the intention of holding them over the longer term. The fund of funds structure results in a highly diversified portfolio and will consist of around 20 30 holdings. Most fixed income exposure will be sterling based or hedged back to sterling, and as a rule, equity exposure will not be hedged. Fund Objective The fund aims to provide a total return from a combination of income and capital appreciation over the longer term. The fund will try to achieve this whilst staying within its forecasted volatility range of 8.5% 12% over a 10 year time horizon.
Quantitative Data Performance Cumulative Performance (Data as at 20 Apr 2016) Period Fund (%) Sector (%) Quartile Ranking 6 months 2.1 3.2 1 year 1.1 2.3 3 years 19.1 13.7 5 years 37.6 26.8 Discrete Annual Performance to Last Quarter End Period Fund (%) Sector (%) Quartile Ranking 0 12m 0.8 2.2 12 24m 11.0 9.9 24 36m 6.5 3.7 36 48m 11.5 10.7 48 60m 4.6 1.4 Geographic Breakdown USA(91%) International(53%) Information Technology(29%) Financials(25%) Consumer Discretionary(9%) Canada(8%) Industrials(7%) JAPAN(GOVERNMENT OF) 1.7% NTS 20/03/54 JPY50000(7%) Telecommunications Utilities(7%) Other(102.3%) Asset Allocation Positioning Name (Data as at 31 Dec 2015) % Weighting Money Market 100.0 Commodity & Energy 100.0 US Equities 98.7 Government Bonds 87.3 Global Fixed Interest 52.7 Financials 36.3 Utilities 20.4 Others 304.6 Top Ten Holdings (Data as at 30 Nov 2015) Company Name % Japan 119.4 Indian Equities 99.7 North America 49.8 Europe ex UK 19.9 Pacific ex Japan 13.4 USA 11.3 UK 8.8 STANDARD LIFE INVESTMENTS UK PROPERTY ACCUMULATION FEEDER TRUST INST ACC STANDARD LIFE TM NORTH AMERICAN 8.5 Germany 7.7 8.6 Sector Breakdown (Data as at 31 Dec 2015) USA (100%) Medium dated bonds (46%) Long dated bonds (32%) Others (24%) Short dated bonds (22%) Financials (13%) American Emerging Government Fixed Interest (13%) Consumer Discretionary (12%) US Government Fixed Interest (11%) Other(126.8%)
Fund data may not total 100 due to rounding. Price total return performance figures are shown in GBP and calculated on a bid price to bid price basis (mid to mid for OEICs) with net income (dividends) reinvested.
Risk Summary Investors should be aware that only investing in funds from within the Standard Life group could mean that at times the manager may lack the flexibility to diversify across investment styles and therefore the portfolio could have a bias to a smaller number of themes and ideas than if he were able to select funds from the whole of the market. Qualitative Risk Assessment Equity Risk Interest Rate Risk Credit Risk Exchange Rate Risk Liquidity Risk Emerging Markets Risk Derivative Risk Manager Risk Significant Potentially Significant Not Significant FE Risk Rating 42 SRRI 4 Equity Risk The fund has exposure to shares. Shares are volatile investments but diversification across asset classes may moderate these risks. At times of economic stress, volatility may rise as might correlations between asset class returns. Interest Rate Risk This is a multi asset fund. Higher interest rates may adversely impact valuations of many financial assets. Credit Risk This is a multi asset fund with exposure to credit markets. A widening in credit spreads may impact the fund. Note that wider credit spreads often occur at times of weaker stock markets and/or weakening economies. Exchange Rate Risk The fund has some exposure to assets denominated in foreign currencies. Changes to exchange rates may impact the fund price. Liquidity Risk The fund primarily invests in liquid assets. Emerging Markets Risk The fund has exposure to emerging markets. Derivative Risk The fund invests in other funds which employ derivatives as part of its investment strategy. Manager Risk The manager is seen as an important element in Square Mile's rating of the fund, although potential alternatives may exist elsewhere in the organisation. Square Mile will reappraise the rating if the lead manager were to leave. Important Notice This factsheet is for the use of professional advisers only. It is published by, and remains the copyright of, Square Mile Investment Consulting and Research Ltd ("SM"). Unless agreed by SM, this commentary may only be used by the permitted recipients and shall not be provided to any third parties. SM makes no warranties or representations regarding the accuracy or completeness of the information contained herein. This information represents the views and forecasts of SM at the date of publication but may be subject to change without reference or notification to you. SM does not offer investment advice or make recommendations regarding investments and nothing in this factsheet shall be deemed to constitute financial or investment advice in any way and shall not constitute a regulated activity for the purposes of the Financial Services and Markets Act 2000. This factsheet shall not constitute or be deemed to constitute an invitation or inducement to any person to engage in investment activity. Should you undertake any investment activity based on information contained herein, you do so entirely at your own risk and SM shall have no liability whatsoever for any loss, damage, costs or expenses incurred or suffered by you as a result. The fund's prospectus provides a complete description of the risk factors. Unless indicated, all figures are sourced from Financial Express Ltd. The information in this factsheet is believed to be reliable but its completeness and accuracy is not guaranteed. SM does not accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein.