May
Global Focused Strategies Fund
2015
31 May 2015
The fund aims to provide positive investment returns in all market conditions over the medium to long term
through a discretionary multi-asset approach that integrates macro insights with fundamental security
research. It invests actively within and between all major asset classes and across the capital structure of
firms, exploiting medium term investment views drawn from a broad expert research platform. The fund
targets a level of return over rolling three-year periods equivalent to cash plus seven and a half per-cent per
year, gross of fees. Operating distinct idea generation, strategy selection and portfolio construction steps,
the fund uses well established processes to target a particular level of positive return with a strong
emphasis on risk awareness whatever the economic environment. The fund uses a combination of
traditional securities and derivatives and can take long and short positions.
The value of investments within the fund can fall as well as rise and is not guaranteed - you may get back
less than you pay in. The fund may use derivatives for the purpose of efficient portfolio management and to
meet its investment objective. The value of overseas assets held in the fund may rise and fall as a result of
exchange rate fluctuations.
Fund Manager
Launch Date
Current Fund Size
Base Currency
Benchmark
SICAV Fund
Absolute Return
Fund
Monthly
Neil Richardson & David Sol
11 Dec 2013
€492.0m
EUR
6 Month EURIBOR
This document is intended for use by individuals who are familiar with investment terminology. Please contact your financial adviser if you need an
explanation of the terms used. Please note that the Portfolio Risk and Return Analysis table is only updated on a quarterly basis. (31 March, 30 June,
30 September and 31 December).
For a full explanation of specific risks and the overall risk profile of this fund and the shareclasses within it, please refer to the Key Investor
Information Documents and Prospectus which are available on our website – www.standardlifeinvestments.com
Fund Information *
Quarterly Portfolio Risk and Return Analysis
Strategy
Stand-alone Risk
Exposure %
0.4
0.3
0.1
Closed
Weighting (risk based %)
Contribution to Returns %
2.3
1.8
0.4
0.1
0.1
0.0
0.4
1 Yr
0.0
0.2
0.0
0.5
1.1
1.0
0.9
0.7
0.5
0.3
Closed
5.9
5.7
5.0
4.1
2.6
1.7
-0.5
-0.1
-0.1
0.3
0.3
0.1
0.0
-0.6
0.2
-0.1
0.2
0.3
0.1
0.4
Chinese equity infrastructure
European equity telecoms
European equity winners
European dividends
European equity investment banks
Global equity miners
Japanese dividends
Indonesian equity
US equity tech v small cap
UK equity housebuilders v retailers
Italian equity small cap v large cap
GEM equity winners
US equity buybacks
UK equity winners
European autos
European equity luxury goods
GEM equity value dispersion
German v French equity
Global equity oil majors
1.1
0.9
0.9
0.9
0.8
0.7
0.6
0.5
0.5
0.5
0.5
0.4
0.2
0.2
Closed
Closed
Closed
Closed
Closed
6.0
5.1
4.9
4.7
4.4
3.6
3.5
3.0
2.8
2.7
2.5
2.3
1.2
1.0
0.8
0.0
0.1
0.2
0.3
-0.1
0.4
0.2
0.0
0.2
0.2
0.0
0.1
0.0
0.9
0.0
-0.5
0.0
0.0
0.4
0.0
0.1
-0.1
0.3
-1.2
1.0
0.2
0.1
0.4
0.2
-0.1
0.3
0.0
0.6
0.0
0.0
0.4
-0.2
FX
Long USD v KRW
Long INR v EUR
Long USD v CAD
Long USD v EUR
Long USD v JPY
Long MXN v ZAR
0.7
0.6
0.5
0.4
0.4
Closed
4.0
3.1
2.8
2.3
2.0
0.0
1.3
1.4
1.1
0.1
0.0
0.0
2.0
2.1
1.6
1.2
-0.3
Inflation
Short French forward-start inflation
0.3
1.9
0.0
0.0
Property
Japanese real estate
1.1
6.1
0.4
0.3
Volatility
Long Kospi variance
Closed
0.0
-0.6
FX hedging
FX hedging
1.0
0.0
0.0
Cash
Cash
Residual
Total
Diversification
Expected Volatility
0.0
0.0
-0.8
6.7
0.2
-0.5
Credit
High yield credit
Contingent capital bonds
Brazilian protein producers
German equity v CDS
Duration
Short US duration
US butterfly
Australian v UK duration
Brazilian government bonds
Korean government bonds
Japanese v European payer spread
Australian forward-start interest rates
Equity
0.2
0.0
18.1
12.4
5.7
Q1
Individual strategy contributions are based on gross returns. The attribution of returns to individual strategies is performed on a best endeavours basis and uses market data at the close of business
at the end of each period. This data is typically unavailable at the time unit prices are struck resulting in minor differences between unit price performance and this attribution. Such differences do
not accumulate so cancel out over time.
Fund Performance *
Price Indexed
Performance has been calculated over
the stated period on the share price
performance basis, based on the
institutional shareclass and net of fees.
For your relevant charges please contact
your Standard Life Investments Sales
Representative.
109
108
107
106
105
Source: Standard Life Investments
(Fund) and Thomson Datastream
(Benchmark)
104
103
102
101
100
99
Global Focused
Strategies
May 15
Apr 15
Mar 15
Jan 15
Feb 15
Dec 14
Nov 14
Oct 14
Aug 14
Sep 14
Jul 14
Jun 14
May 14
Apr 14
Mar 14
Feb 14
Jan 14
Dec 13
98
6 Month EURIBOR
Cumulative Performance
Source: Standard Life Investments (Fund) and Thomson Datastream (Benchmark)
YTD (%)
1 month (%)
3 months (%)
6 months (%)
1 year (%)
Global Focused Strategies
7.9
2.4
2.1
7.2
7.5
6 Month EURIBOR
0.0
0.0
0.0
0.1
0.2
Since launch (%)
Global Focused Strategies
8.3
6 Month EURIBOR
0.4
Note: Past Performance is not a guide to future performance. The price of shares and the income from them may go down as well as up and
cannot be guaranteed; an investor may receive back less than their original investment.
For full details of the fund's objective, policy, investment and borrowing powers and details of the risks investors need to be aware of, please
refer to the prospectus.
Monthly Investment Review and Outlook
Market review
Global equities moved modestly higher
in May. However, markets were fairly
volatile and performance was mixed at
a regional level, with developed
markets outperforming emerging
markets.
The US S&P 500 Index reached a new
record high, buoyed by favourable
corporate results and receding
expectations of an imminent rate hike.
Elsewhere, UK stocks benefited from
the Conservative Party’s surprise
election win, while Japan made solid
gains on better-than-expected growth
figures. Progress in Europe was
hampered by lingering uncertainty over
Greece, as agreement between Athens
and its creditors remained elusive.
Government bonds again
underperformed equities and yields
rose. Credit also posted negative
returns, with high yield issues faring
better than investment grade. Spreads
were little changed over the month.
Global economic data were mixed. In
Europe, for instance, Spain and Italy
reported solid first-quarter growth,
while German business confidence
registered a sharp month-on-month
decline in May. Eurozone consumer
confidence also worsened for the
second consecutive month in May. In
Japan, meanwhile, the economy grew
between January and March for the
second straight quarter, exceeding
market expectations.
In currency markets, the US dollar
rallied from its mid-May low.
Commodity prices again weakened.
Activity
We opened a short European long-term
interest rate strategy, taking advantage
of the elevated levels of volatility in
European bond markets.
We closed our high yield credit
position. We felt the risk/reward profile
was no longer attractive, given the low
level of the risk-free rate and the
potential for monetary tightening to
force rates and possibly spreads
higher.
Performance
Global Focused Strategies returned
2.44% during the month (net of fees),
compared to the benchmark 6-month
EURIBOR return of 0.00%.
Japanese equities were markedly
buoyant in May, thanks to upbeat
corporate results, improving economic
data and yen weakness. This drove
strong gains from our Japanese capital
return strategy, which seeks to benefit
from Japanese companies increasing
shareholder returns through higher
dividends and share buybacks.
Also profitable was our UK equity
housebuilders versus retailers
position. UK housebuilders had a
particularly strong month following the
Conservative Party’s surprise outright
election win. With political risk
surrounding the housing market
greatly reduced, housebuilders
significantly outperformed retailers.
Following its relative weakness last
month, the US dollar regained
momentum, bolstered by firmer
economic data. This was positive for
our currency pairs favouring the US
dollar versus the Korean won, the
Japanese yen and the euro.
Our Brazilian government bond
strategy also made gains, as the
market started to move on from the
Petrobras scandal, focusing instead on
the government’s sound fiscal policies
and the anchoring of long-term
inflation expectations.
Elsewhere, our global equity miners
strategy posted a negative return as
commodity prices again struggled. Our
long equity volatility strategy also lost
ground – the upward move in US
equities weighed on the implied levels
of volatility to which we are exposed.
Outlook
Our central expectation is still for
modest global growth, albeit with
regional variations. A growing
divergence in central bank monetary
policy will remain an important driver
of asset returns. On the one hand, the
US appears to be nearing a tighter
monetary regime, whereas economies
like Europe and Japan continue on a
looser monetary path. Geopolitical
tensions remain high and on many
metrics asset prices appear expensive.
We seek to exploit the opportunities
that these conditions present by
implementing a diversified range of
strategies using multiple asset classes.
Other Fund Information
Retail Acc
-
Bloomberg
ISIN
WKN
Domicile
Custodian Name
Auditor Name
Retail Dist
-
Institutional Acc
SLIGFSD LX
LU0995142212
A1W9Y1
Institutional Dist
-
Luxembourg
The Bank of New York Mellon (Luxembourg) S.A., 2-4 Rue Eugene Ruppert, L-2453 Luxembourg,
Grand Duchy of Luxembourg
PricewaterhouseCoopers S.à r.l., Reviseur d'entreprises 400, route d'Esch, L-1014 Luxembourg,
Grand Duchy of Luxembourg
Reporting Dates
Interim
30 Jun
Annual
31 Dec
Settlement Time
Email
Telephone
Share Price Calculation Time
Dealing Cut Off Time
T+4
[email protected]
+352 24 525 716
15:00 (Luxembourg time)
13:00 (Luxembourg time)
Currency
EUR
EUR
EUR
*Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is
licensed for use by Standard Life**. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be
accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Standard Life** or any other third party (including any
third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data.
Past performance is no guarantee of future results. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to
which Third Party Data relates.
**Standard Life means the relevant member of the Standard Life group, being Standard Life plc together with its subsidiaries, subsidiary undertakings
and associated companies (whether direct or indirect) from time to time.
“FTSE®”, "FT-SE®", "Footsie®", [“FTSE4Good®” and “techMARK] are trade marks jointly owned by the London Stock Exchange Plc and The Financial
Times Limited and are used by FTSE International Limited (“FTSE”) under licence. [“All-World®”, “All- Share®” and “All-Small®” are trade marks of
FTSE.]
The Fund is not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE”), by the London Stock Exchange Plc (the
“Exchange”), Euronext N.V. (“Euronext”), The Financial Times Limited (“FT”), European Public Real Estate Association (“EPRA”) or the National
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representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE EPRA NAREIT Developed Index (the
“Index”) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and
calculated by FTSE. However, none of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index
and none of the Licensor Parties shall be under any obligation to advise any person of any error therein.
“FTSE®” is a trade mark of the Exchange and the FT, “NAREIT®” is a trade mark of the National Association of Real Estate Investment Trusts and
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Additional Information for Switzerland : The prospectus, the key investor information documents, the articles of incorporation, the annual and
semiannual report in German, and further information can be obtained free of charge from the representative in Switzerland: Carnegie Fund Services
S.A., 11, rue du Général-Dufour, CH-1204 Geneva, Switzerland, web: www.carnegie-fund-services.ch. The Swiss paying agent is: Banque Cantonale de
Genève, 17, quai de l’Ile, CH-1204 Geneva. The last share prices can be found on www.fundinfo.com.
To find out more about our fund range, visit our website or alternatively speak to your
usual contact at Standard Life Investments.
www.standardlifeinvestments.com
Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL.
Standard Life Investments Limited is authorised and regulated by the Financial Conduct Authority.
Standard Life Investments Global SICAV is an umbrella type investment company with variable capital registered in Luxembourg (no. B78797) at 2-4, rue Eugéne Ruppert,
L-2453 Luxembourg, Grand Duchy of Luxembourg.
Calls may be monitored and/or recorded to protect both you and us and help with our training.
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201506181423 INVRT661 0515 SPRJ_EUR