Standard Life Global Index 100

The Standard Life Global Index 100 Fund invests almost entirely in global shares through a portfolio of index funds, including exposure to emerging markets. It may also hold collective investment schemes, transferable securities, deposits, money market instruments and cash. The fund is passively managed, so it aims to follow the relevant markets rather than try to pick winning stocks.

The Standard Life Global Index 100 Fund may invest part of its overseas exposure in a currency hedged share class to mitigate some currency risk. Currency risk means that changes in exchange rates can reduce the value of overseas investments when they are converted back into the fund's base currency. This may help reduce some of the impact of currency movements, but it does not remove the risk entirely.

The Standard Life Global Index 100 Fund is exposed to equity market risk, so its value can move sharply when stock markets rise or fall. It also has emerging market exposure, which can carry greater political, tax, economic, foreign exchange, liquidity and regulatory risk than developed markets. Other named risks include index tracking risk, counterparty risk, inflation risk, use of derivatives and securities lending.

The Standard Life Global Index 100 Fund may use derivatives for efficient portfolio management, risk reduction or to help meet its investment objective, although it does not make extensive use of them. Derivatives are contracts linked to other assets, and they can magnify losses in difficult market conditions. The fund's assets may also be used for securities lending to earn extra return or offset costs, which can add risk if a borrower does not return the securities.

The Standard Life Global Index 100 Fund may suit investors looking for long-term investment returns from a broadly diversified global equity portfolio. Because it is invested almost entirely in shares, it is likely to be more appropriate for investors who can accept substantial ups and downs in value over time. The fund aims for both income and capital growth, with income reinvested into the unit price.