Standard Life Investments

Investment process

The Enhanced-Diversification Growth portfolio is managed by our established and award-winning multi-asset investing team (MAIT). To construct the portfolio, we apply our rigorous investment process, which draws on expertise from across the company. This collaborative approach ensures we make well-informed investment decisions and fully exploit our best investment ideas.

Idea generation

The MAIT carries out extensive research and risk analysis. Using our Focus on Change investment philosophy, the team liaises closely with our asset class specialists to gain insight into key market drivers. This helps identify longer-term investment opportunities across global asset classes so that we can allocate appropriately.

Selection

Working as part of the MAIT, the managers responsible for the Enhanced-Diversification Growth portfolio decide on the overall blending of market return assets and enhanced-diversification strategies. In addition, they agree on the individual weightings for the selected strategies.

The portfolio is subject to regular review and discussion between the portfolio managers and our on-desk risk specialists. The portfolio must at all times meet our criteria regarding:

  • conviction in its return potential
  • its effectiveness in mitigating risk
  • its liquidity and scalability.

Implementation

The portfolio management team implements the approved strategies effectively and efficiently, using an array of market tools and instruments. These include direct investment, index futures and swaps. Once a strategy has been implemented, the team regularly monitors it and tests our conviction in its return potential. This ensures the portfolio contains only our highest conviction ideas.