Standard Life Global Index 60

The Standard Life Global Index 60 Fund invests in a diversified mix of index funds, with approximately 60% in global shares and about 40% in global bonds and other fixed income investments. Its fixed income exposure can include corporate bonds, government-backed securities and index-linked bonds. The fund also may hold cash, money market instruments and other collective investment schemes.

The Standard Life Global Index 60 Fund follows a passive approach, meaning it is designed to track broad markets rather than try to beat them through active stock picking. It uses underlying index funds managed by Vanguard Asset Management (Europe), with key holdings including global stock and bond index funds and an emerging markets stock index fund. Income received by the fund is reinvested and shown in the unit price.

The Standard Life Global Index 60 Fund carries both equity and bond market risk, so its value can rise and fall with stock markets, interest rates and wider economic news. It also has currency risk, which means overseas investments can become more or less valuable when exchange rates move. Because it invests in emerging markets and China A shares, it may face higher political, regulatory, liquidity and foreign exchange risks than developed market funds.

The Standard Life Global Index 60 Fund may use a currency hedged share class for part of its overseas exposure to help reduce currency risk. Currency risk means exchange-rate movements can affect the value of foreign investments when they are measured in euros. This does not remove the risk entirely, but it can reduce some of the impact of currency swings.

Yes, the Standard Life Global Index 60 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 financial contracts linked to other assets, and they can add complexity as well as risk. The fund’s assets may also be used for securities lending to help earn extra return and offset costs.