MyFolio: £0-10 billion in six years flat

man jumping on grass field representing a growth in MyFolio investment funds

Investing

Gareth Trainor

13th December 2016 at 12:00pm

Our MyFolio investment options have been hugely popular since they were launched six years ago, and now have over £10 billion in assets under management. (Source: Standard Life Investments, as at 31 October 2016.)

So what’s the secret of their popularity and why do people keep investing in them?

You choose how much risk you want to take  

The MyFolio range lets you choose your investments based on how much risk you’re comfortable taking. This reflects research we’ve carried out that indicates risk is one of the factors people are most worried about when it comes to investing. (Source: Standard Life research, 2012.)

It also recognises that many people don’t have the time or expertise to regularly manage their investments – our experts do the hard work for you. Specialists at Standard Life Investments are involved at every stage of the investment process; from deciding which types of investments should be in the funds and in what proportions, to selecting individual investments, to managing the funds day in, day out.

And, for added comfort, the funds are regularly reviewed by governance professionals, whose job it is to make sure they are doing what they should and are being managed appropriately.

Even if you’re an experienced investor, MyFolio funds can make a good ‘core’ investment because they include a well-diversified mix of asset classes. Read more here.

MyFolio funds have delivered on our promises  

Each MyFolio fund aims to achieve the best possible return for its given level of risk.

The chart below shows what £100,000 invested in MyFolio funds when they were launched would now be worth.

We’ve used the five MyFolio Managed Funds, our most popular MyFolio funds. As expected, the lower-risk MyFolio Managed I Fund has grown the least in value and the higher-risk MyFolio Managed V Fund has grown the most.

My Folio graph

My Folio Managed Funds graph showing period October 2010 – September 2016.

 

Value of £100,000 invested at launch

Annualised return (since launch)

Year-on-year performance

Year to 30 September 2012

Year to 30 September 2013

Year to 30 September 2014

Year to 30 September 2015

Year to 30 September 2016

MyFolio Managed I

£132,909

4.9%

8.9%

4.2%

4.7%

1.75%

7.6%

MyFolio Managed II

£144,489

6.3%

12.2%

6.9%

6.1%

2.5%

9.7%

MyFolio Managed III

£155,203

7.6%

13.9%

11.4%

7.2%

2.6%

10.8%

MyFolio Managed IV

£160,990

8.3%

14.5%

14.9%

8.1%

2.8%

12.5%

MyFolio Managed V

£169,238

9.2%

15.8%

18.2%

8.5%

3.0%

14.5%

Source: Morningstar Direct, from launch (6 October 2010) to 30 September 2016. Returns are calculated on series 4 pension funds, are total return in pounds sterling and all charges are included.

Past performance is not a guide to the future.

MyFolio funds have delivered consistently against their aims 

As I mentioned before, research has told us that risk is a big factor when people come to choose their investments – they don’t want nasty surprises. So another key aim of the MyFolio funds is to provide customers with smoother returns, while at the same time maximising opportunities for returns.

That doesn’t mean the funds don’t go up and down in value over the short term – they do, and the more risky ones can still go up and down quite significantly. But the amount each fund’s value changes by should ordinarily be within a set range.

The chart above shows that the funds have softened the ups and downs of the market as expected, with the level I fund having the smoothest returns, and the level V fund seeing more volatility but getting better returns.

Meanwhile, the MyFolio Managed III Fund – a medium risk option – has achieved positive returns 91.7% of the time. (Source: Morningstar Direct, rolling one-year periods from launch on 6 October 2010 to 30 September 2016.)

Don’t just take our word for it  

At Standard Life, we’re proud of the MyFolio range and what it’s achieved for our customers.

Over the years, the range and the team at Standard Life Investments behind MyFolio have also received plenty of external recognition. Most recently, they were Highly Commended in the Multi Manager/Fund of Funds Management Group of the Year category at the 2016 Investment Week Specialist Awards.

If you like what you hear, it’s easy to invest in MyFolio. They’re available in an ISA and in most of our pensions. Find out more about My Folio here.

If you’re already a MyFolio investor, login to see up-to-date information about how your investments are doing.

Of course, MyFolio funds may not be right for everyone. You should take advice and regularly review your financial goals.

The value of any investment can go up or down and may be worth less than was paid in.

The information in this blog or any response to comments should not be regarded as financial advice and is based on our understanding in December 2016.