The portfolio is a fund-of-funds primarily invested in other Standard Life Investments funds, although manager Jacqueline Lowe also invests outside the SLI when required.
The fund currently sits in third place within the Investment Management Association’s Mixed Investment 20-60 per cent share category with three-year returns 6.6 percentage points higher than the peer average.
The £195.11m fund has grown by almost £7m since last December. The total expense ratio of 1.62 per cent is among the lowest available for an actively managed fund-of-funds, well below the peer group average of 1.75 per cent.
The portfolio, which aims to deliver long-term growth from a combination of income and capital growth, has delivered year-to-date trailing returns of 11.85 per cent.
UK investment funds continue to dominate the portfolio, making up 92.05 per cent of total holdings. The £624.77m Standard Life UK Equity High Income Fund, which is currently delivering year-to-date trailing returns of 19.14 per cent, makes up more than a quarter of the portfolio.
The fund has a maximum initial charge of 4 per cent, a minimum investment of £500 followed by additional investments of £500, and minimum monthly savings of £50, which can be made through an Isa. The maximum annual management charge is 1.5 per cent.
While SLI’s portfolio remains one of the best-performing funds within the sector, the £47.39m Scottish Widows HIFML Diversified Return Fund has endured a much rougher ride.
Morningstar data shows the portfolio delivered three-year returns of 6.09 per cent, significantly lower than the peer average and the returns of the SLI fund.
It has year-to-date trailing returns of just 0.69 per cent, while the TER is among the higher priced at 2.21 per cent.
The fund aims to deliver positive returns each year, with the prospect of long-term capital growth in line with equity returns, but with a lower volatility.
Its largest holding is Insight Investment’s Ireland-domiciled ILF GBP Liquidity Fund, which has delivered year-to-date returns of 0.18 per cent.
The portfolio’s minimum investment is £5000, followed by additional investments of £500. It has a maximum initial charge of 4 per cent and an AMC of 1.5 per cent.
Adviser Says...
Chris Daems, director of London-based Principal Financial Solutions, said: “The Scottish Widows fund seems expensively charged and has relatively lacklustre past performance. However it does seem to have a large element of the portfolio held in cash, which may be suitable for some investors.
“On the other hand the Standard Life portfolio has outperformed the index and is significantly cheaper than the Scottish Widows fund, but it does seem to have a more dynamic portfolio with a large element invested in Standard Life’s internal UK equity and corporate bond funds.”