In June 2012 Standard Life was the first in Ireland to launch a range of risk targeted funds, and they’ve proved to be a popular choice. Standard Life currently manage over €15,billion of assets in such funds.
Standard Life realised that peoples attitude to risk can change as we move through life. The MyFolio range offers a choice of funds at 5 risk levels. The more risk the more potential for return. Investing in the MyFolio fund range is quick and easy. You can simply identify your appropriate risk level using our risk assessment questionnaire. MyFolio is open to investors with lump sum of €10,000 or those who wish to invest €125 per month. It can be accessed via pensions for a minimum of €50 per month.
To acknowledge the 5th Anniversary, we took the opportunity to interview Sinead Cullen, Business Manager with Standard Life.
HFM Q: What is MyFolio Active Philosophy?
Sinead A: Myfolio Active is a ‘fettered’ fund of funds meaning it only invests in other actively managed funds across the Standard Life fund range. It aims to give investors broad exposure to a diversified range of assets including equities, bonds, absolute return funds and property appropriate for their risk profile. “We’re aiming to achieve that efficient frontier so that the more risk you take, the better your return”.
HFM Q: What makes MyFolio different from other risk rated funds?
Sinead A: There are a few things which differentiate MyFolio from other risk rated funds;
1. Robust investment process
Given the critical importance of asset allocation when it comes to investment return, the investment process for MyFolio places significant resource in this area, and specifically in relation to strategic asset allocation.
2. Independent expertise in Strategic Asset Allocation process
Standard Life Investments with the support of an independent company, Moody’s Analytics’ aim to maximise returns for the level of risk selected. Moody’s Analytics work with Standard Life Investments to decide on an appropriate strategic asset allocation for each MyFolio Fund. This Strategic Asset Allocation approach takes a 10-year view on future performance of each asset class. It then makes recommendations to Standard Life Investments on the best mix of assets in which to invest for each risk level. Each selected asset combination will represent one of the five risk levels offered through the MyFolio funds
3. Choice of investment style
At Standard Life, we offer investors two suites of MyFolio Funds – five MyFolio Active funds and five MyFolio Market funds. The key difference is their investment style.
- The underlying funds of the MyFolio Active range are actively managed by Standard Life Investments and they invest across all major asset classes including absolute returns.
- The underlying funds of the MyFolio market range are predominantly passively managed by Vanguard, a world leader in passive investment management.
HFM Q: Would you consider MyFolio to be an attractive alternative to non performing deposit accounts?
Sinead A: For clients willing to accept an element of investment risk for higher potential return than deposits, MyFolio may be viable investment solution. MyFolio aims to combine the right asset classes and create the optimal portfolio to achieve the best returns for investors within their chosen risk profile.
HFM Q: 5 Years on – Has MyFolio delivered?
Sinead A: The performance of the MyFolio Active funds has been consistent and strong since launch 5 years ago. The lowest risk fund, MyFolio Active I returned 26.5% whilst the highest risk MyFolio Active V delivered the strongest return of 63.9%** These charts show the linear risk and reward aspect across the MyFolio range of funds.
Moneymate 11 June 2012 to 11 June 2017. Volatility of returns are annualised standard deviation using weekly data points. Annualised performance is net of annual management charges.
**Source: Moneymate 11 June 2012 to 11 June 2017. Cumulative performance is net of annual management charge.
HFM Q: What is the MyFolio fund Outlook?
Sinead A: There is still a lot of political uncertainty which has yet the potential to impact markets. We believe Standard Life’s close relationship with companies gives MyFolio and advantage. Our managers meet company chief executives on a daily basis so we’re very close to what’s actually going on. That gives us an edge in how to position our portfolios.
If you are interested in having your Attitude to Risk profiled, please complete our Risk Assessment Questionnaire and return it to our office, we can then go through your report and discuss your investment options which best suit your profile.
As with all investments, it is important to remember that values can fall as well as rise