MyFolio - Forward looking investments

Forward looking investment process

MyFolio Funds are managed using a forward looking investment process. To determine the mix of assets that can deliver the highest possible return for given level of risk, Standard Life Investments consult with Moody’s Analytics, who are world leaders in risk modelling.

Moody’s project their assumptions into the future and don’t assume the return that has happened in the past will happen again in the future. Some other risk-based funds available in the market manage to ESMA which bases its calculations on what has happened in the past.

Moody’s Analytics take a 10-year view on asset classes and make recommendations to Standard Life Investments on the best mix of assets in which to invest for each risk level. This mix of assets is known as the strategic asset allocation (SAA) of a fund.

Forward looking returns

Through MyFolio, we aim to strike the balance between the risk your client is willing to take and the rewards they receive in return. The document attached illustrates the balance between risk, reward and time when investing in MyFolio. It shows the range of potential annual returns we expect over different time periods across each risk level.

Risk and reward document