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Three-year track record of Standard Life Investments EDGF


The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF), which aims to deliver an equity-like return over a market cycle with only two-thirds of equity market volatility, has now been in operation for over three years.

Since inception in November 2013, EDGF has performed well, returning 5.9 per cent per annum (gross of fees) with just 6.7 per cent volatility. While global equities returned 7.3 per cent per annum over the same period, volatility was notably higher, at 10.0 per cent (MSCI AC World Index, hedged to GBP). Since its launch, EDGF has also demonstrated strong resilience when equity markets have had sharp falls. [1]

EDGF versus competitors

As well as performing consistently in line with its return and volatility objectives, EDGF has outperformed many of its UK diversified growth fund (DGF) competitors. Chart 1 compares EDGF’s performance (net of fees) with that of the median of the top 10 DGFs in the eVestment universe [2].

The additional return generated by EDGF has not come at the expense of greater risk, with EDGF’s maximum drawdown of 9.7 per cent (i.e. the greatest historic potential loss for an investor) at the same level as that of the peer group median.

Chart 1: EDGF performance versus DGF universe

Genuine risk diversification at its heart

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while seeking to smooth out the peaks and troughs typically experienced in these markets.

To achieve these objectives, we did not restrict ourselves to investing in growth assets alone. In Chart 2, the dark and light blue blocks represent the risk of the portfolio’s investments in isolation. The chart illustrates that we also actively allocate to traditional market return assets, such as European equities, US credit and UK property. In addition, we invest in a blend of enhanced-diversification strategies, such as currencies, interest rates and relative value equity investments.

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

Importantly, the blend of enhanced-diversification investments that we choose provides EDGF with genuine diversification aimed at lowering portfolio volatility, as can be seen by the significant size of the ‘Enhanced-diversification’ bar on the chart. Moreover, each individual investment targets a positive return in isolation.

History has shown that a portfolio of investments which might seem well-diversified in good market conditions may lose those diversification benefits in times of extreme market stress. We term this ‘fair-weather diversification’. With EDGF, we seek to avoid this ‘fair weather diversification’, by continually assessing the robustness of the current portfolio versus a series of market stresses that have happened in the past and potential stress events for the market looking forward. As we saw earlier, EDGF has consistently demonstrated the ability to withstand large equity market falls over the past three years.

Why invest in EDGF?

EDGF benefits from two of our core strengths in multi-asset investing, namely dynamic management of traditional market investments - our core focus for decades - as well as our recognised skills in absolute return investing. In addition, EDGF benefits from the full intellectual insight of our views on markets and leverages our market-leading risk management infrastructure. Seeking to deliver investment growth in a smoother manner than traditional growth assets for a competitive price, EDGF should appeal to a wide range of investors, defined contribution pension savers in particular.


[1] Source: Standard Life Investments and MSCI AC World Index, 31 December 2016
[2] eVestment Diversified Growth Fund universe, top 10 funds 31 December 2016


Professional Investors only. Past performance is not a guide to future performance. The value of an investment can fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                         Risk contributed by each investment idea            

  

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

The Standard Life Investments Enhanced-Diversification Growth Fund (EDGF) is an innovative multi-asset approach for investors seeking low-volatility growth. Specifically, the Fund aims to deliver an equity-like return over a market cycle (typically five to seven years), but with only two-thirds of equity market volatility.

Since launch in November 2013, EDGF has performed strongly and consistently on both an absolute basis and relative to global equities, returning 6.3 per cent per annum gross of fees (Chart1). Moreover, the Fund has met its volatility objective, with around just two-thirds of the volatility of global equities.

Chart 1: Performance of EDGF versus global equities (20/11/13 to 31/8/16)

EDGF benefits from two of our core strengths in multi-asset investing, namely, dynamic management of traditional market investments, , as well as the expertise of our award-winning multi-asset investing team. Additionally, EDGF takes advantage of the intellectual insight of our views on markets and also leverages our market-leading risk management infrastructure.

Superior risk diversification limits volatility

Investors have long sought an investment approach that can deliver lower-risk capital growth. Using our expertise in diversification, we designed EDGF to match the total return of traditional growth assets over time, while smoothing out the peaks and troughs typical of these markets.

EDGF is an extension of the diversified growth concept. However, unlike traditional diversified growth funds, we are not restricted to investing in growth assets alone. As well as actively allocating to traditional market return assets, we also invest in a blend of enhanced-diversification strategies, carefully selected to perform well with the growth assets. In this way, we seek to capture the benefits of rising equity markets while limiting losses when markets decline (Chart 2).

Chart 2: EDGF: A well-diversified portfolio of return-seeking investments

                                    Risk contributed by each investment idea            

 

Enhanced-Diversification Growth Fund GBP Gross Z Shareclass
* MSCI AC World (hedged to GBP)

Importantly, each of the enhanced-diversification investments we choose for EDGF not only provides genuine diversification, but also targets a positive return on its own merits.

Demonstrating resilience even in the toughest market conditions

Such are the vagaries of markets that a portfolio of investments might seem well-diversified in good market conditions, but those same investments might all behave in a similar and downward manner in times of extreme market stress. We term this ‘fair-weather diversification’. 

To help EDGF to withstand testing market conditions, we assess how our current portfolio would perform in a series of diverse market stresses that have happened in the past. Additionally, we test for ‘extreme but plausible’ stress events that might occur in the future.

Since launch, EDGF has consistently met its performance objectives, delivering equity-level returns with around two-thirds of equity market volatility. This solid track record is testament to our innovative approach to managing investment risk.


EDGF

  • delivering superior risk-adjusted performance, generating equity-level returns  over the market cycle with around  just two-thirds of equity market volatility
  • achieving superior risk diversification to limit volatility
  • demonstrating resilience even in the toughest market conditions 

Professional Investors only. Past performance is not a guide to future performance. The value of an investment call fall as well as rise and an investor may not get back the original amount invested. EDGF uses derivatives extensively. 

Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority. www.standardlifeinvestments.com
 

Furtherreading
from Institutional Asset Manager

The merits of the mid-market manager

Mon 27/03/2017 - 14:30

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