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Global Real Estate Fund Contents 03 04 05 06 08 09 10 11 Introduction to the Global Real Estate Fund Why invest in the Global Real Estate Fund? What does the Global Real Estate Fund invest in? Where in the world? Who is the Global Real Estate Fund suitable for? Important risks to consider Why choose Standard Life? About Standard Life Investments Standard Life Global Real Estate Fund Commercial real estate can be an attractive investment opportunity given its stable income return, the potential for capital growth over the long term, in addition to the valuable diversification benefits it can offer. However, for most people it's a difficult area to invest in. The Standard Life Global Real Estate Fund offers a unique opportunity to invest in global commercial property markets. It invests in direct property, actual ‘bricks and mortar’ and also invests indirectly through listed real estate, Real Estate Investment Trusts (REITs) and other real estate investment funds. It aims to provide you with long-term growth through a combination of income and capital appreciation. Warning: If you invest in this fund you may lose some or all of the money you invest. Warning: The value of your investment may go down as well as up. Warning: This investment may be affected by changes in currency exchange rates. Global Real Estate Fund 03/12 Why invest in the Global Real Estate Fund? Investing in a broad range of global real estate opportunities helps towards achieving a well-diversified portfolio while also maximising the potential for growing your investment. 1 Global opportunities 2 Diversification 3 Investment flexibility 4 Stable income 5 Capital appreciation 04/12 The fund invests in a wide range of sectors and assets in many countries and provides for the flexibility to choose the best return opportunities at any given time. The fund uses both direct and indirect global real estate investments which can provide for increased diversification and help reduce risk. The fund doesn’t have a specific split between direct and indirect investments. The split will change based on market conditions, which means the fund will always aim for the best possible return for your investment. Commercial property can offer a stable rental income from financially secure long-term tenants that occupy the buildings the fund holds. Direct property assets can appreciate in value over time, providing the potential for capital growth. Global Real Estate Fund Enhanced-Diversification What does the Global Real Estate Fund invest in? Direct real estate A tangible asset often referred to as ‘bricks and mortar’. It allows access to properties that many investors couldn’t afford on their own. It also provides income in the form of rent. This fund can invest in commercial property including offices, retail outlets and industrial buildings. Listed real estate - property shares This is shares in real estate companies that own, manage and develop properties. These are more liquid than direct real estate as they can be traded on a daily basis. Real estate investment trusts (REIT) A REIT is an investment trust that invests in property and is traded on the stock market. They operate in a tax efficient structure and most of the rental income they generate must be passed directly to investors. Real estate investment funds The fund can also invest in other real estate investment funds to gain access to other countries and sectors. Global Real Estate Fund 05/12 Where in the world? The Hague Edinburrg gh Calgary Dublin Dublin Lond L London ndon nd on on Paris Boston Fra ran an a nkf kffu urrt u urt St Helier Barcelona Countries where the fund holds assets Standard Life Investments office Source: Standard Life Investments, 28 February 2017 06/12 Global Real Estate Fund Poland Seoul Beijing Czech Republic Hong o g Kong Singa apore p pore Tokyo Sydney Perth Melbourne Global Real Estate Fund 07/12 Who is Global Real Estate suitable for? It’s important to understand what you’re investing in. We’ve given some points below to help you decide if the Global Real Estate Fund is right for you. You should consider Global Real Estate if you ¬are looking for the opportunity to achieve a total return combining income with the potential for some capital appreciation over the longer term ¬wish to invest in direct real estate, real estate related equities and cash and indirect real estate including real estate related equities, real estate investment trusts (REITs) real estate investment funds and cash ¬have an investment time horizon of at least five years. Global Real Estate may not be suitable if you ¬do not want to take any risk with your capital ¬are not prepared to accept periods of losses due to the volatile nature of markets ¬are not willing to accept the possibility of fluctuations in the level of income generated within the fund. Switching your funds, transferring or cashing in You may be one of many investors in this fund. Sometimes, in exceptional circumstances, we may wait before we carry out your request to switch funds, transfer or cash in your policy. This delay could be for up to a month. But, the delay could be up to 12 months because property and land can take longer to sell. We may also change the pricing basis of a fund to reflect cash flows in and out. These are processes which aim to maintain fairness between those remaining invested and those leaving a fund. If we have to delay switching, transferring or cashing in, we’ll use the fund prices on the day the transaction takes place these prices could be very different from the prices on the day you made the request. 08/12 Global Real Estate Fund Important risks to consider You should also be aware of the following risk factors: (a) Commercial property is less liquid than other asset classes such as bonds or equities. Selling property can be a lengthy process so you should be aware that you may not be able to sell your investment when you want to. (b) Commercial property transaction charges are higher than those which apply in other asset classes. A high volume of transactions would have a material impact on fund returns. (c) Property valuation is a matter of judgement by an independent valuer and is therefore a matter of the valuer's opinion rather than fact. (d) The fund invests in equities and equity related securities. These are sensitive to variations in the stock markets which can be volatile and change substantially in short periods of time. (e) Dividend payment policies of the REITs in which the fund invests are not representative of the dividend payment policy of the fund. (f) The fund may invest in emerging market equities and/or bonds. Investing in emerging markets involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity and regulatory risks. (g) Investing in derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as a failure amongst market participants. The use of derivatives may result in the fund being leveraged (where economic exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will be to magnify losses. The fund does not make extensive use of derivatives. Global Real Estate Fund 09/12 Why choose Standard Life? Standard Life is a leading long-term savings and investments company. Headquartered in Edinburgh and operating internationally, we've been in Ireland since 1834 and have been helping generations of Irish customers plan for their future. Your policy is protected Standard Life in Ireland operates as a branch of our UK parent company. This means that any policies taken out since 1 December 2001 are covered by the UK’s Financial Services Compensation Scheme (FSCS) in the event that Standard Life is in default. So if you invest in a Standard Life pension or investment policy, 100% of the claim is covered, with no upper limit. There is no equivalent Irish compensation scheme. For information on FSCS cover, see Your policy is protected (FSCSFAQ). 10/12 Global Real Estate Fund About Standard Life Investments Strong and market leading Standard Life Investments is a leading asset manager, who manage €325.6 billion* on behalf of clients worldwide. Talented people At the heart of their success is over 1,700* investment professionals and support staff working for them around the world. They spend a lot of time and energy recruiting and keeping the best and most talented people. * As at 31 December 2016 Taking care of your money They thoroughly research and analyse each investment idea before they add it to any of our funds. They use their own tried and tested methods to do this. Their aim is to constantly look ahead to anticipate change, so that they can deliver the best rewards for our investors. Global reach Their headquarters are in Edinburgh and they have offices in Boston, Hong Kong, London, Beijing, Sydney, Dublin, Paris and Seoul. They also have close links with leading investment companies in India and Japan. A decision to invest should not be based on the information within this document. Please talk to your financial adviser for more information, or if you need an explanation of the terms used. Global Real Estate Fund 11/12 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) 639 7000 Mon-Fri, 9am to 5pm. Call may be monitored and/or recorded to protect both you and us and help with our training. Call charges will vary. www.standardlife.ie 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. GRECUST V01 0217 ©2017 Standard Life, images reproduced under licence