We take risk very seriously and have a dedicated Risk Management team to measure and monitor risk across all portfolios. In addition, our Asset Class Fund Managers and Client Account Managers play a role in managing risk in clients' funds.
Risk can take many forms, from the risks associated with a particular product to operational risks, to the risks associated with a given market or stock.
Product or fund risk is simply the risk associated with choosing a particular investment product or fund. Each of our funds has a clearly defined fund specification setting out the parameters within which the portfolio manager can invest. Our clients also benefit from the security of knowing that there are always at least two managers, the Client Account Manager as well as the Asset Class Manager, monitoring every portfolio.
Operational risks are those associated with individual investment houses and their business processes. For instance, fund managers should not be allowed to expose their funds to unnecessary risk by investing in assets outside the remit of the fund specification. Standard Life Investments has a well developed and efficient Controls & Compliance function which reports to the Chief Executive. Their independent monitoring provides comfort to investors that fund specifications will be appropriately controlled.
Market & stock specific risks are those associated with individual investment markets and shares which all investment managers aim to control through effective asset allocation and stock selection. Our House View ensures a consistent approach to managing market risk across our product range. To reduce the potential risk associated with specific companies, we undertake comprehensive research and company visits to minimise the potential risk associated with investing in certain companies. Our Risk Management team also uses computer based risk management programs to monitor each fund's exposure to individual stocks and sectors.
Standard Life Investments Limited, tel. +44 131 225 2345, a company registered in Scotland (SC 123321) Registered Office 1 George Street Edinburgh EH2 2LL.
The Standard Life Investments group includes Standard Life Investments (Mutual Funds) Limited, SLTM Limited, Standard Life Investments (Corporate Funds) Limited and SL Capital Partners LLP. Standard Life Investments Limited acts as Investment Manager for Standard Life Assurance Limited and Standard Life Pension Funds Limited.
Standard Life Investments may record and monitor telephone calls to help improve customer service.
All companies are authorised and regulated in the UK by the Financial Services Authority.
©2008 Standard Life Investments.
