Standard Life Global Index 20

The Standard Life Global Index 20 Fund invests mainly in index funds with about 20% in global shares and about 80% in global bonds and other fixed income investments. Its bond exposure can include corporate bonds, government-backed securities and index-linked bonds, and it may also hold cash and money market instruments. The fund is globally diversified and includes emerging markets in its equity allocation.

Yes. The Standard Life Global Index 20 Fund follows a passive approach by investing in a portfolio of index funds rather than trying to pick individual winners. This means it aims to mirror broad market exposure across global shares and bonds. The underlying investment manager is Vanguard Asset Management (Europe).

The Standard Life Global Index 20 Fund may use a currency hedged share class for part of its overseas exposure to help reduce currency risk. Currency risk means foreign exchange movements can make overseas investments worth more or less in the fund's base currency, even if the local market has not changed. This can matter because the fund invests globally across both shares and bonds.

The Standard Life Global Index 20 Fund faces risks from both bond markets and stock markets. Bond values can be affected by interest rates, inflation, credit spreads and the chance that an issuer may not repay as promised; in plain language, bond prices can fall and income may not be fully paid. Its equity and emerging market exposure also adds volatility, and investing in China A shares or emerging markets can carry higher political, liquidity, foreign exchange and regulatory risk.

The Standard Life Global Index 20 Fund may use derivatives for efficient portfolio management, risk reduction or to help meet its investment objective, but it does not make extensive use of them. It may also use securities lending to earn extra return and help offset costs. Securities lending means the fund temporarily lends out securities, which can add some risk even if it may increase returns.