04/06/2007

Dynamic Distribution Breaks £100m

Leading fund manager, Standard Life Investments today celebrates a milestone for its Dynamic Distribution Fund which has passed through the £100m mark. During the last two months alone, the Authorised Unit Trust, which was launched in February 2006, has doubled its funds under management.

During its first year in the market, the Dynamic Distribution Fund has got off to an impressive start by topping the Cautious Managed Fund sector since launch¹, producing top decile performance over three and six months and one year² and generating a return of 12.34% for investors versus a sector average of 5.54% over the last year³.

'AA' rated by Citywire, Jacqueline Kerr is manager of the fund and Head of Mutual Fund Investments at Standard Life Investments. She said:

"This fund encapsulates all that is good about Standard Life Investments. Six out of 12 of the underlying mutual funds have produced top decile performance over two years which gives a strong indication of the strength of stock selection capability within the fund⁴. The fettered fund-of-fund structure means that we are able to pull on strengths from across our asset class range – which is an excellent advantage bearing in mind the high levels of performance we are generating across our mutual fund offering.

"An additional element which gives us a key competitive edge is that the fund takes advantage of a strategic property exposure. In our view, this is essential in the delivery of a truly diversified cautiously managed fund. The fact that this fund is not tied to a static weighting between the main asset classes, adds to the attractiveness of the fund as we are able to increase or reduce equity holdings to exploit expectations of market growth and therefore manage risk levels for our investors. As manager of the fund, it is hugely motivating for me to see it go from strength to strength and I am confident that the impressive pool of talent at Standard Life Investments, who work strictly within our repeatable and consistent focus on change process, will continue to drive and maintain impressive performance levels for our investors."

¹ Morningstar, bid-bid for the period 20/02/06 – 28/05/07
² Morningstar, bid to bid for the period to 1 May 2007
³ Morningstar as at 1 May 2007
⁴ Morningstar, bid-bid, income reinvested – of the 12 underlying funds, 3 have less than 2 years history