Standard Life Investments

Enhanced-Diversification Growth Fund

The Enhanced-Diversification Growth Fund (EDGF) aims to generate equity-type returns over the economic cycle (typically five to seven years in duration), but with less than two-thirds of equity market volatility.

Enhanced-Diversification Growth Fund is essentially a diversified growth portfolio. However, unlike many traditional diversified growth approaches, it is not wholly reliant on different growth assets to provide its return and diversification benefits. While it holds a range of market return investments (such as equities, bonds and real estate across the globe) it also uses enhanced-diversification strategies to provide both additional sources of return and high levels of diversification for the portfolio.

Enhanced-Diversification Growth Fund is able to use the diversification strategies and investment resource of our multi-asset specialists. This allows it to target enhanced, lower-risk performance versus conventional diversified growth portfolios, in a cost-effective manner.

Benefits of EDGF

  • Looks further afield for diversification opportunities – is not reliant only on growth assets to provide diversification.
  • Smoother investment journey – utilises return-seeking, enhanced-diversification strategies, providing greater resilience in times of market stress.
  • Experienced team and established process – the portfolio is constructed around our established and renowned process for generating strategies, combining strategies with conventional assets to mitigate risk, and risk-based portfolio management and control.
You should consider Enhanced-Diversification Growth Fund if you:However, Enhanced-Diversification Growth Fund may not be suitable if you:
wish to invest in a growth portfolio that targets stock market-type returns over the economic cycle but with less volatility than funds that invest purely in listed shares. Do not wish to take any risk with your capital
Do not wish to invest in a portfolio that uses financial derivatives
Have a time horizon of less than five years.