Download Standard Life MyFolio Market Funds

Standard Life MyFolio Market Funds
Introduction
Launched in 2010, the MyFolio funds are risk based multi asset portfolios offering a choice of active and passive
investments over five risk profiles. The Market portfolios are the lower cost investment solution, investing in a portfolio
of passive funds. The MyFolio Market funds are managed by Bambos Hambi, who has many years’ experience in
multimanager investing. He is backed by investment director James Millard and a large, experienced and wellresourced Fund Solutions Team, which is there as a central resource on fund selection to the Standard Life Group. In
addition to the Fund Solutions Team, the tactical asset allocation within the funds is undertaken by Standard Life
Investments’ Multi Asset Investment Team (MAIT), the team responsible for the Global Absolute Return Strategies
(GARS) product. The manager will also use external resources where appropriate.
Fund Range
The Standard Life MyFolio Market funds are risk based and predominantly passive. The range comprises:
FUND
SECTOR
LAUNCH DATE
VOLATILITY TARGET
MyFolio Market I
IA Volatility Managed
September 2010
N/A
MyFolio Market II
IA Volatility Managed
September 2010
N/A
MyFolio Market III
IA Volatility Managed
September 2010
N/A
MyFolio Market IV
IA Volatility Managed
September 2010
N/A
MyFolio Market V
IA Volatility Managed
September 2010
N/A
Investment Process
The funds have a strong asset allocation process, based on risk / return optimisation and combined with a tactical overlay. There is a relatively
simple approach across the range, using the core asset allocation as the base then focusing on the underlying fund selections to populate the
portfolios. The strategic asset allocation for the funds is set by Standard Life Investments in consultation with Moody’s Analytics (formerly
Barrie & Hibbert) who undertake a risk / return optimisation process using the strategic asset classes that are agreed with Standard Life
Investments. Moody’s Analytics then make recommendations as to the optimum combination of those assets. Tactical asset allocation
positions for each fund are then decided by the Multi Asset Investing Team (MAIT). MAIT apply their own tactical views to fine tune the
strategic allocations to take advantage of shorter term opportunities, effectively tilting the strategic asset allocations towards their favoured
asset classes. The MyFolio range of funds are run in quite a disciplined manner and, as such, there is a limit as to the extent of any tactical tilt
of +/- 5% within each asset class and this same limit applies to any variation in the splits of growth and defensive assets. The key underpin to
this process is the support given by the multi asset team, which has significant experience in running complex multi asset strategies and
developing global asset allocated portfolios. This, in combination with the external resource of Moody’s Analytics, gives the asset allocation
process a very robust foundation. Although the funds predominately invest in passive funds, there may be occasions where an appropriate
passive fund is not available and, in this situation, the allocation will be made to the most suitable alternative asset class or to an actively
managed fund. The fund selection process is centred on finding suitable passive funds that will replicate the performance of the strategic asset
class benchmarks. The key criteria for selection is the confidence in the fund manager to deliver a low tracking error at a competitive price.The
Market funds will also invest strategically into a number of active real estate funds. The selection of the active property funds follows the same
process as for other external managers with the aim of creating a diversified holding to act as a proxy for the commercial property market.
Our Opinion
The whole process, from asset allocation through to fund selection, utilises the strength of both internal and external resources to form a
balanced combination of portfolios. This robust structure forms the basis from which all portfolios are built and provides a consistency across
the range. Advisers looking to combine different styles for clients within the MyFolio range can do so knowing the portfolio will have the same
underlying characteristics. Within the MyFolio fund range the Market funds have the lowest cost base and, as such, the key selection factors
are cost and tracking error. The Market funds range form part of an investment proposition that we believe to be one of the most
comprehensive solutions available to the retail investment market.
Important Notice
This factsheet is aimed at Investment Professionals only and should not be relied upon by Private Investors. Our comments and
opinion are intended as general information only and do not constitute advice or recommendation. Information is sourced direct from
fund managers and from a number of websites. This information is therefore as current as is available at the time of production.
Information compiled June 2017