Q2
2017
MyFolio Market V Fund
30 June 2017
OEIC Fund
The fund aims to provide a total return from a combination of income and capital appreciation over the
longer term, investing mainly in a range of collective investment schemes to achieve a broad exposure to
diversified investments, including equities, fixed and variable rate interest bearing securities and
immoveable property. Exposure to equities and fixed and variable interest bearing securities is achieved by
investing mainly in passively managed collective investment schemes. Exposure to immoveable property is
achieved by investing mainly in actively managed collective investment schemes. The fund may also invest
in transferable securities, money market instruments, deposits and cash. Typically, the fund will have high
exposure to assets providing potential for growth, such as equities.
Multi-Asset
Fund of Funds
Past performance is not a guide to future returns and future returns are not guaranteed. The price of assets
and the income from them may go down as well as up and cannot be guaranteed; an investor may receive
back less than their original investment. The fund may use derivatives to reduce risk or cost, or to generate
additional capital or income at low risk. Usage of derivatives is monitored to ensure that the fund is not
exposed to excessive or unintended risks. The value of assets held within the fund may rise and fall as a
result of exchange rate fluctuations.
Fund Manager
Fund Manager Start
Launch Date
Current Fund Size
Base Currency
Quarterly
Bambos Hambi
2 Jun 2011
9 Sep 2010
£196.0m
GBP
This document is intended for use by individuals who are familiar with investment terminology. To help you understand this fund and for a full
explanation of specific risks and the overall risk profile of this fund and the shareclasses within it, please refer to the Key Investor Information
Documents and Prospectus which are available on our website – www.standardlifeinvestments.com. Standard Life Investments has not considered
the suitability of investment against your individual needs and risk tolerance. If you are in any doubt as to whether this fund is suitable for you, you
should seek advice. An adviser is likely to charge for advice. We are unable to provide investment advice. Please note that the number contained in
the fund name is not related to the synthetic risk and reward indicator contained in the Key Investor Information Document (KIID).
Fund Information *
Composition by Fund Exposure
Fund %
Vanguard US Equity Index
Vanguard FTSE UK All Share Index
iShares Continental European Equity Index
iShares Japan Equity Index
L&G UK Index Trust
L&G US Index
iShares UK Equity Index
Vanguard Emerging Markets Stock Index
14.5
13.1
12.8
9.7
8.1
7.5
7.4
7.3
Fund %
iShares Pacific ex Japan Equity Index
iShares US Equity Index
SLI UK Real Estate
Cash and Other
M&G Property Portfolio
L&G Emerging Markets Government Bond Index
iShares Global Property Securities Equity Index
6.8
6.6
2.4
1.6
1.2
0.6
0.4
Tactical asset allocation+
The table below shows the tactical asset allocation of each asset class relative to the strategic asset allocation position.
Asset Class
Underweight %
Strategic asset %
Overweight %
Cash & Other
-
1.0
-
Sterling Corporate Bonds
2.0
2.0
-
UK Equities
1.8
30.4
-
US Equities
-
27.7
1.3
European Equities
-
11.7
1.3
1.3
Japan Equities
-
8.5
Asia Pacific Equities
-
6.9
-
Emerging Market Equities
-
6.9
0.5
UK Property
1.3
4.9
-
Global Real Estate
-
-
0.3
Emerging Market Debt
-
-
0.5
+
Portfolios not re-balanced daily. Due to market fluctuations the Fund Composition may vary from the Tactical Asset Allocation.
Fund Performance *
Price Indexed
190
The performance of the fund has been
calculated over the stated period using
bid to bid basis for a UK basic rate tax
payer. The performance shown is based
on an Annual Management Charge
(AMC) of 0.23%. You may be investing
in another shareclass with a higher
AMC. The charges for different share
classes are shown on the next page. For
details of your actual charges please
contact your financial adviser or refer to
the product documentation.
180
170
160
150
140
130
Source: Standard Life Investments
(Fund)
120
110
Jun-17
Dec-16
Jun-16
Dec-15
Jun-15
Dec-14
Jun-14
Dec-13
Jun-13
Dec-12
Jun-12
100
MyFolio Market V
Year on Year Performance
Source: Standard Life Investments (Fund)
Year to
30/06/2017 (%)
Year to
30/06/2016 (%)
Year to
30/06/2015 (%)
Year to
30/06/2014 (%)
Year to
30/06/2013 (%)
Retail Fund Performance
22.1
4.5
6.9
9.2
18.5
Institutional Fund Performance
22.9
5.4
7.8
10.3
19.2
Platform One
22.7
5.2
7.6
10.0
19.4
Cumulative Performance
Source: Standard Life Investments (Fund)
1 Year (%)
3 Years (%)
5 Years (%)
Retail Fund Performance
6 Months (%)
6.2
22.1
36.4
76.7
Institutional Fund Performance
6.6
22.9
39.6
83.6
Platform One
6.5
22.7
38.8
82.3
Note: Past Performance is not a guide to future performance. The price of shares and the income from them may go down as well as up and
cannot be guaranteed; an investor may receive back less than their original investment.
For full details of the fund's objective, policy, investment and borrowing powers and details of the risks investors need to be aware of, please
refer to the prospectus.
For a full description of those eligible to invest in each share class please refer to the relevant prospectus.
Definitions
Cash and Other - may include bank and building society deposits, other money market instruments such as Certificates of Deposits (CDs),
Floating Rate Notes (FRNs) including Asset Backed Securities (ABSs), Money Market Funds and allowances for tax, dividends and interest due if
appropriate.
Quarterly Commentary
Environment
Equity markets worldwide delivered
another quarter of positive returns,
driven by the improving global economy
and a generally positive corporate
reporting season. Sentiment received a
boost after Emmanuel Macron won the
French election, triumphing over his
anti-EU rival Marine Le Pen. Elsewhere,
a surprise election in the UK and its
inconclusive result unsettled domestic
markets. Meanwhile, the US Federal
Reserve (Fed) raised rates as expected
in June and the European Central Bank
(ECB) unsettled markets when it hinted
that it might start to reduce quantitative
easing later this year.
June was the pivotal month for
government bond markets during the
quarter. Three of the world’s major
central banks issued statements that
seemed to signal a move towards
tighter monetary policy. The result was
to send government bond yields sharply
higher in the last few days of the
month. Politics dominated corporate
bond markets during April and May.
Investors warmly embraced the victory
of centrist candidate Emmanuel Macron
in France’s presidential election and
credit spreads tightened. The prospects
for monetary policy occupied investors
as the period closed but corporate
bonds remained broadly resilient and
finished the quarter with a positive
return.
UK commercial real estate maintained
its stable performance during the
second quarter. Having turned positive
in the first quarter, capital values
continued to rise, while rental growth
also remained positive.
Activity
We review the Strategic Asset Allocation
(SAA) for each of the MyFolio funds
every quarter, with the aim of ensuring
that we continue to meet investors’
long-term interests. Following the most
recent review, we made no changes to
the SAA model.
During the quarter, we increased the
level of risk in the portfolio, favouring
the sustained global uptick in real
growth, given the lack of inflationary
pressure, in part driven by a weaker
commodities landscape. We therefore
made the following Tactical Asset
Allocation (TAA) changes.
Increased our exposure to European
equities – growth momentum in Europe
has been strong year-to-date with
consensus 2017 GDP growth
continuously revised upwards, and
manufacturing and services data
highlighting the positive economic
backdrop.
Slightly increased our position in Asia
ex-Japan equities – we believe that any
economic slowdown here is unlikely in
the next year. We are now at a neutral
allocation versus our SAA.
In addition, we have listed below some
of the main TAA positions held during
the second quarter.
Underweight position in UK equities –
we favour positions in other developed
markets where our convictions are
higher, such as Europe, the US and
Japan.
Overweight allocation to US equities –
as the economic backdrop remains
positive, though President Trump’s
policies have proved harder to
implement than expected.
Overweight holdings in Japanese
equities – due to attractive valuations
and the potential for improved
dividends. Wage growth is progressing
and inflation stalling, so rising real
incomes should support corporate
earnings as should a weaker currency.
Any changes to the weightings of the
underlying funds were as a result of the
changes in TAA carried out over the
review period.
Performance
Overall, the strategic allocations to
European equities, UK equities and
emerging market equities were the
strongest contributors to returns over
the period. At the TAA level, the
overweight position in European
equities was beneficial in performance
terms, with no significant detractors.
At a fund level, the performance of the
tracker funds over the quarter was in
line with expectations. The returns
matched their equivalent indices and
timing differences, fees and slight
variations between the asset classes
and the underlying fund benchmarks
could explain tracking errors.
Outlook
Global equities have performed well
year-to-date and confidence remains in
the outlook for earnings, cashflows and
dividends. That said, there is still
political uncertainty, with elections in
Germany and, potentially, Italy on the
horizon. The UK also has the thorny
task of negotiating its exit from the EU;
the recent inconclusive election result
has made that task more daunting. In
the US, President Trump’s policy
agenda also faces numerous
headwinds, while geopolitics will
remain an ever-present source of
volatility.
Fixed income investors will focus on the
course of monetary policy. The ECB’s
ongoing bond purchase programme will
encounter seasonal low supply over the
summer, which should also provide
support. This should lead to spread
compression (a narrower yield
difference between government bonds
and corporate bonds).
UK real estate dynamics remain
supportive although we expect
moderate market returns. In a low
growth environment, UK real estate
continues to provide an elevated yield
compared with other assets. Given the
backdrop of continuing heightened
uncertainty, however, we expect more
polarised performance between prime
and secondary assets.
Other Fund Information
Lipper
Bloomberg
ISIN
SEDOL
Retail Acc
68120239
SLMMKT5 LN
GB00B4XXTK68
B4XXTK6
Retail Inc
n/a
n/a
n/a
n/a
Institutional Acc
68120224
SLMK5IA LN
GB00B4YRJT68
B4YRJT6
Institutional Inc
n/a
n/a
n/a
n/a
Lipper
Bloomberg
ISIN
SEDOL
Platform One Acc
68165259
SLMMRPA LN
GB00B3T5XZ20
B3T5XZ2
Platform One Inc
n/a
n/a
n/a
n/a
Reporting Dates
XD Dates
Payment Dates (Income)
Interim
31 Dec
n/a
n/a
Annual
30 Jun
30 Jun
31 Oct
Valuation Point
Type of Share
ISA Option
7:30 am
Accumulation
Yes
Initial Charge
Annual Management Charge
Ongoing Charges Figure
Retail
4.00%
0.95%
1.05%
Institutional
0.00%
0.23%
0.40%
Platform One
0.00%
0.40%
0.63%
The Ongoing Charge Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Fund. It is made up of the Annual
Management Charge (AMC) shown above and the other expenses taken from the Fund over the last annual reporting period. It does not
include any initial charges or the cost of buying and selling stocks for the Fund. The OCF can help you compare the costs and expenses of
different funds.
*Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is
licensed for use by Standard Life**. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be
accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Standard Life** or any other third party (including any
third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data.
Past performance is no guarantee of future results. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to
which Third Party Data relates.
**Standard Life means the relevant member of the Standard Life group, being Standard Life plc together with its subsidiaries, subsidiary undertakings
and associated companies (whether direct or indirect) from time to time.
“FTSE®”, "FT-SE®", "Footsie®", [“FTSE4Good®” and “techMARK] are trade marks jointly owned by the London Stock Exchange Plc and The Financial
Times Limited and are used by FTSE International Limited (“FTSE”) under licence. [“All-World®”, “All- Share®” and “All-Small®” are trade marks of
FTSE.]
The Fund is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”), by the London Stock Exchange Plc (the
“Exchange”), Euronext N.V. (“Euronext”), The Financial Times Limited (“FT”), European Public Real Estate Association (“EPRA”) or the National
Association of Real Estate Investment Trusts (“NAREIT”) (together the “Licensor Parties”) and none of the Licensor Parties make any warranty or
representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE EPRA NAREIT Developed Index (the
“Index”) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and
calculated by FTSE. However, none of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index
and none of the Licensor Parties shall be under any obligation to advise any person of any error therein.
“FTSE®” is a trade mark of the Exchange and the FT, “NAREIT®” is a trade mark of the National Association of Real Estate Investment Trusts and
“EPRA®” is a trade mark of EPRA and all are used by FTSE under licence.”
Useful numbers Investor Services
0345 113 69 66.
www.standardlifeinvestments.co.uk
Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL.
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201707121036 INVRT000
0617 XKHW