S&P Capital IQ Fund Research has assigned Gold gradings to 15 funds within Standard Life Investments’ MyFolio range.
The range is designed to be an outsourced investment solution for IFAs and wealth managers.
Central to this product is risk grading divided into five different levels, “I” being the lowest and “V” the highest. For each risk level, Standard Life offers a low-cost fund of passive funds, an active fettered and an unfettered fund of funds, as well as income versions (the latter not yet covered by S&P Capital IQ).
The risk guideline range for these funds goes from three per cent up to 18.5 per cent (risk level I to V). Subject to each fund’s annualised volatility guideline, Standard Life Investments sets a strategic asset allocation (SAA) after consultation with Barrie & Hibbert with the aim of maximising long-term returns. This is based on modelling economic and long-term market variables (such as asset risk premiums), and is reviewed quarterly.
For a more timely response to changing market conditions, a tactical allocation overlay is applied within a +/- five per cent range for the SAA weighting of each asset class. This is set directly by Standard Life Investments’ multi-asset investing team of 25, led by Euan Munro and split into strategic research, risk and structuring, and multi-asset fund management.
Bambos Hambi heads the fund solutions team of eight, responsible for about GBP1.9bn as at end-September 2012.
“Standard Life Investments’ MyFolio range is well designed and draws off similar resources to the successful GARS product (also graded Gold by S&P Capital IQ) as well as having an experienced fund selection team. Given this, and the strong start made by these funds within their respective peer groups, they achieve S&P Capital IQ Gold gradings,” says Randal Goldsmith, S&P Capital IQ fund analyst.