1. The importance of robust portfolio construction
Q1 2019
The importance of robust portfolio construction
For Professional Investors Only – Not for public distribution This document is intended for investment professionals only and must not be relied on by anyone else. There are various general and fund specific risks associated with investing in any fund. Please refer to the MyFolio funds Prospectus or Simplified Prospectus for full details of the risks applicable to each fund
Please note that the number contained in the fund name is not related to the synthetic risk and reward indicator contained in the Key Investor Information Document (KIID)
Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.

2. Understand key principles on robust portfolio construction
Learning Objectives
By the end of this session you should:
Understand key principles on robust portfolio construction 1
Understand how controlling volatility may benefit the outcome for your clients 2
Understand the importance of asset allocation and how portfolios are managed efficiently 3

3. General Investment Propositions
Advisor Managed Solutions: Bulk Model Portfolio or Individual Model Portfolios
Discretionary Fund Managers (DFM) or DFM Model Portfolio Service
Risk based funds
In-house discretionary solutions
Source: Standard Life Aberdeen,

4. Portfolio construction
Six factors to consider
Diversification benefits - asset allocation framework
Valuation aware
Take a long-term view
Don’t chase performance
Consider investment styles & understand your fund managers
6. Alternative investing

5. Step 1 - Take a diversified approach
Strategic & tactical asset allocation
Tactical Asset Allocation
The investor can take advantage of shorter-term investment opportunities. In doing so, making modest increases to markets they favour. This is suited to an active trading approach.
Strategic Asset Allocation
A longer term investment based around the investors risk tolerance, time horizon and investment objectives. This allocation changes over time but is compatible with a buy-and-hold strategy.
Key considerations:
Risk profiling tool
How often asset allocation is being assessed
Diversification benefits & asset allocation approach
Timeframe
Source: Aberdeen Standard Investments

6. Step 1 - Take a diversified approach
What is diversification?
Growth assets: Equities, High yield bonds, Emerging Market Local Currency Bonds and Real Estate
Defensive assets: Cash, Government bonds, Corporate and Global index linked bonds
How investments move in relation to each other is called correlation. If two investments are negatively correlated, that means generally when one performs well, the other won’t. If two investments are positively correlated, they’ll generally both perform well at the same time.
Correlation: To get the real benefit of diversification think about choosing investments that don’t move in the same way as each other.
Source: Aberdeen Standard Investments

7. Step 1 - Take a diversified approach
Example of a diversified portfolio
Defensive
Growth
Source: & Aberdeen Standard Investments, MyFolio Market II SAA Nov 2018

8. Step 2 – Valuation aware
Forecasts for risk and return – GBP currency, 10Y horizon
* GBP Unhedged. Source: Aberdeen Standard Investments, 2H2018 Note: Returns are over ten years (GBP hedged) on a per annum basis. Expected returns forecasts, provide no guarantee of future returns outcomes, and will change over time.

9. Short Dated UK Government Bonds UK IL Gilts Short Dated UK IL Gilts
Step 2 – Valuation aware
Example defensive fixed income sectors
UK Government Bonds
Short Dated UK Government Bonds
UK IL Gilts
Short Dated UK IL Gilts
Global Index Linked Bonds
Money Market including Cash
Sterling Corporate Bonds
Short Dated Global Index Linked Bonds
Short Dated Sterling Corporate Bonds
Global Corporate Bonds
Short Dated Global Corporate Bonds
Absolute Return Bonds
Source: Aberdeen Standard Investments, the MyFolio Strategic Asset Allocation change in November 2018 *

10. Step 2 – Valuation aware Example fixed income due diligence questions
Describe the universe covered by the research analysts?
Are there any preliminary screenings conducted to narrow down the universe? If so, detail.
Approximate number of issuers covered by your internal research?
Please describe in detail each step of the process related to issuer and issue selection. What criteria are used? If applicable, distinguish the criteria used for the selection of issuers and those used to select particular issues of the same issuer.
Please describe the criteria used to size your positions. What role do benchmark weights play?
Do you use ex-ante risk indicators such as tracking error, volatility or value-at-risk?
Please describe your duration management discipline. Are you trying to add value from active duration management?
Describe the universe covered by the research analysts?
To understand the remit/workload per analyst.
Are there any preliminary screenings conducted to narrow down the universe? If so, detail.
To understand how the manager filters out issuers from the investment universe, and which percentage of the overall universe is actively researched.
Approx number of issuers covered by your internal research?
To understand how much reliance the manager has on third-party providers in their research process. A large reliance on external data providers is typically frowned upon.
Please describe in detail each step of the process related to issuer and issue selection. What criteria are used? If applicable, distinguish the criteria used for the selection of issuers and those used to select particular issues of the same issuer.
To understand the bottom-up research process involved, the type of analysis performed, and which criteria the manager uses to determine inclusion in portfolios.
The second part of the question (if applicable) is to determine how the manager selects amongst the bonds of a single issuer based on the capital structure, maturity, etc.
Please describe the criteria used to size your positions. What role do benchmark weights play? Do you use ex-ante risk indicators such as tracking error, volatility or value-at-risk? What metric do you use to size positions (DTS, % market value, tracking error, etc.)?
Very important question when it comes discipline in maximum positions (relative to B/M or in absolute term), and how this is quantified (TE/vol/VAR) to enable portfolio sizing.
This ensures the appropriate monitoring for a diversified portfolio, and that no single exposure dominates the risk profile.
Please describe your duration management discipline. Are you trying to add value from active duration management?
Typical question to determine the different sources of alpha of the fund manager. A credit team largely comprised of credit analyst for instance would be focused more on generating returns through stock selection than through duration management and will often has a leeway to manage against a benchmark (for e.g. +/- 2 years vs benchmark). On the other hand, a strategic bond fund manager will likely generate a key part of his/her returns through duration management, and can thus expect a larger leeway (for e.g. duration to be between 0 and 8 years).
Source: Aberdeen Standard Investments, Qvidian.

11. Q. Approximate number of issuers covered by your internal research?
Step 2 – Valuation aware
Example fixed income due diligence questions
Q. Please describe your duration management discipline. Are you trying to add value from active duration management?
Q. Approximate number of issuers covered by your internal research?

12. US and UK equity returns
Near top of cycle, so lower expected returns. Prefer UK over US, mainly on valuation grounds.
US equity forecasts are lower than their long-term average.
Profit margins are at all time highs.
Valuations are stretched
The US Dollar is expensive
US equity returns pa in USD 3.2%, GBP 1.7%
10Y local currency return components
UK equity, better than other regions
UK equities are unusually cheap compared to US
FTSE100 companies have global reach, deriving around two thirds of their revenues from the rest of the world
UK companies pay high dividends
UK equity return in GBP 5.7% pa
Source: Aberdeen Standard Investments, 2H Note: Charts calculated in local currency terms on ten-year per annum basis. These are predictions and actual events or results may differ materially.

13. Step 3 - Take the long-term view
Far greater certainty in returns over long time horizons
US Equities Best and Worst Returns ( )
19.5% pa
-3.4% % pa
When you have a short term time horizon for making investments for your clients, you can clearly see the range of returns are wide. The scale of the downside and upside returns are broadly similar.
Conversely, if you invest for the long term the range of outcomes over the long term is much more favourable as you benefits from the compounding of dividend and long term growth of equities.
As you can see a long term view can have negative outcomes, which is why diversification on a strategic and tactical asset allocation is important.
Source: Morningstar (10/12/2018). Past performance is no guarantee to future returns.

14. Step 4 - Don’t chase performance
Investors habitually buy yesterday’s winning funds, which then disappoint
Excess Returns Before and After Selecting Active Manager
Source:Goyal, A., & Wahal, S. (2008). The selection and termination of investment management firms by plan sponsors. The Journal of Finance, 63(4),

15. Step 5 - Consider investment style & understand your fund managers
Active fund selection is about far more than past performance
Examples of Investment Style:
Value
Size
Yield
Volatility
Growth
Momentum
Quality
Style Research can be employed to evaluate fund managers; utilising the historic investment footprints of a fund to understand the decision making process of a manager. For example, if a fund selector was investigating a value orientated manager, you would expect consistent evidence of securities being purchased at a discount to the wider market and sold following a re-rating.
Source: MyFolio Due Diligence Guide

16. Step 5 - Understand your fund managers
Example Fund Manager A - Value
Artemis European Opportunities
Example Fund Manager B - Growth
Reference Dan from Verbatim,
SPEAK: differeing styles: growth, yield, calue, quality, size, volatility, momentum
Source: Style Research, Aberdeen Standard Investments, December For illustrative purposes only.

17. Step 5 - Consider investment style & understand your fund managers
Blending managers with different styles can smooth returns
Excess Return Correlation: 0.1
Excess Return
Standard Deviation
Tracking Error
Information Ratio
Batting Average
European Equity Fund Manager A - Value
3.0%
12.5%
4.8%
0.6
56.9%
European Equity Fund Manager B - Growth
2.3%
11.0%
4.2%
0.5
45.8%
50 / 50 Blend
2.7%
11.4%
3.4%
0.8
63.9%
Source: Morningstar, based on. 01/12/2012 to 30/11/2018. GBP Monthly Returns. Past performance is no guarantee to future returns.

18. Global Smaller Companies Overview
15%
Small
Market cap
85%
Large
70%
Small
Number of companies
30%
Large
Market cap
No. of companies
Performance*
No. of analysts
MSCI AC World Index
85%
2480
+197% 22
MSCI AC World Small Cap Index
15%
6095
+564% 6
As at Q3 2018
Chart / Table is only updated annually however, amend the performance to ensure that it matches throughout the presentation
Source: * Factset, Thomson Reuters DataStream, Bloomberg, 01 January 2000 to 30 September 2018 in GBP. Past performance is no guarantee to future returns.
Small caps provide a large and under-researched asset class

19. Equity Fund Due Diligence questions
Fund Management team structure and changes?
What is the funds current investment style (if any) and is it intended that this is maintained through changing economic cycles?
What are the buy and sell disciplines imposed (if any) and what degree of flexibility is used within the decision making process?
How many company visits do you make? How often do you consult with the companies held in the portfolio?
Do you use any quantitative tools or measures to identify anomalies and if so which? (e.g. price/book, price momentum, return on equity (ROE), volatility).
How do you treat currency exposure, do any of the funds hedge the exposure?
In what market conditions would you expect your fund to perform best? Are there any circumstances when you would expect under performance?
Source: Aberdeen Standard Investments, Qvidian.

20. Equity Fund Due Diligence questions
Q. What is the funds current investment style (if any) and is it intended that this is maintained through changing economic cycles?
Q. In what market conditions would you expect your fund to perform best? Are there any circumstances when you would expect under performance?
Source: Aberdeen Standard Investments, Qvidian.

21. 6. Alternative investments
Why invest in commercial real estate?
Potential for Capital Growth
Better Portfolio Diversification
Potential for Steady Income
As an Alternative investment, UK Commercial Property provides strong diversification vs Fixed Interest and Equities.
Commercial Property offers less price variability, which is a valued part of a portfolio for many investors.
Potential for Capital / Income loss
Commercial real estate tends to perform in line with the economy, if the economy does badly the commercial property could lose value i.e. Global Financial Crisis
Potential for tenants to default and a property to lie empty
You should view commercial real estate as a long term investment
Delay in access to investment
Most commercial property funds only hold a relatively small amount of cash
Selling a commercial property can take a long time, as a result there may be periods when a fund is unable to give investors immediate access to their investment
This can occur if dealing in a direct real estate fund is suspended because a significant number investors apply to sell their investment
High transactions costs
When buying or selling commercial real estate, transaction costs can be very large e.g. UK stamp duty on purchases alone are 5% of purchase price
To ensure there transaction costs do not materially disadvantage existing investors, the manager can change the pricing basis of the fund e.g. Bid to Offer spread
Source:

22. What are the investment risks of commercial real estate?
Benefits of investing in commercial property, be mindful of the risk involved
Potential for Capital / Income loss
Delay in access to investment
High transactions costs
Source:

23. Liquidity and flexibility
A different kind of real estate investing – Real Estate Investment Trusts (REITS)
Idiosyncratic asset class with equity and debt characteristics but, at their core, REITs are real estate
Liquidity and flexibility
Stable income
Often confusion about the name, but REITs are just a tax efficient structure for corporate entities to invest in underlying real estate
Investing over the short term i.e. up to 12 months then performance is like that of equities
Investing over the long term i.e. >12 months then historical analysis has shown performance to be more correlated with direct real estate investing
Benefits of listed real estate investing include:
Liquidity and Flexibility
Liquidity – our listed team can easily put $1bn into market across 5 business days without impacting pricing
Flexibility – greater liquidity permits more flexibility - it is also cheaper to trade in shares of property co’s than directly (ability to buy in at discounts; UK large caps c30%, smaller specialist REITs smaller discounts)
Stable Income Profile (attractions for income portfolios)
Long-term nature of the leases – predictability of the cash flows given contractual lease obligations
Higher than average distribution yields and attractive dividend growth versus traditional equities
Enhanced Diversification vs UK Direct Investment
By geography - 24 countries in benchmark universe
By sector - companies tend to focus on a particular property sector and geography with distinct economic and fundamental drivers
Able to take advantage of wide range of opportunities across the investment landscape
COPY FROM NEXT SLIDE:
What are the investment risks? - While the benefits of investing in listed real estate are compelling, you should also be mindful of the risks involved.
Potential for capital/income loss Listed real estate investment is an investment in listed real estate/quoted property company equities. Equities and equity related securities are sensitive to variations in the stock markets which can be volatile and change substantially in short periods of time. In particular, investing in emerging market equity markets involves a greater risk of loss than investing in more developed markets due to, among other factors, greater political, tax, economic, foreign exchange, liquidity and regulatory risks.
When a fund’s investments are concentrated in the real estate sector, this may result in greater volatility and lower liquidity than portfolios which are more broadly diversified by type of company in which they invest.
Source: Aberdeen Standard Investments and FTSE EPRA/NAREIT Global Index, 30 September 2018

24. What are the investment risks?
A different kind of real estate investing – Real Estate Investment Trusts (REITs)
Idiosyncratic asset class with equity and debt characteristics but, at their core, REITs are real estate
What are the investment risks?
Listed real estate investment is an investment in listed real estate/quoted property company equities
Equities and equity related securities are sensitive to variations in the stock markets which can be volatile and change substantially in short periods of time
REITs are concentrated in the real estate sector, this may result in greater volatility and lower liquidity than portfolios which are more broadly diversified by type of company in which they invest
Source: Aberdeen Standard Investments

25. Robust portfolio construction summary1 2 3
Diversification benefits
Valuation aware
Take the long-term view
To get the real benefit of diversification think about choosing investments that don’t move in the same way as each other.
Major assets classes have done well over the last decade.
They start as modest investments, but over time they increase little by little. 4 5 6
Consider investment styles and understand your fund manager
Don’t chase performance
Consider Alternative Investments
Past performance is not a guide to future returns.
Blending managers with different styles can smooth returns.
Correlation and diversification.
Static

26. Understand key principles on robust portfolio construction
Learning Outcomes
Understand key principles on robust portfolio construction 1
Understand how controlling volatility may benefit the outcome for your clients 2
Understand the importance of asset allocation and how portfolios are managed efficiently 3

27. Introducing the MyFolio suite of funds
Important to emphasise the choice of 3 styles, ability to blend across the styles and potential to use different styles for particular clients circumstances or preferences.
And it is available across multiple wrappers, providing ease and simplicity for advisers and clients.
Already the SLI MyFolio site has proven attractive for corporate clients, for example:
Cost conscious clients may blend passive (market) With one of the active suites…I e SLI
MyFolio Funds provides choice rather that trying to cram clients in single solutions
Source: Aberdeen Standard Investments. ‘© Owned by each of the corporate entities named in the respective logos. Companies selected for illustrative purposes only to demonstrate the investment management style and not as an indication of performance or investment recommendation.’
Enabling advisers control of risk, investment style and cost

28. Capturing expertise at every step of the process
Bambos Hambi
Head of Multi-Manager Strategies
STEP 1
STEP 2
STEP 3
STEP 4
STRATEGIC ASSET ALLOCATION
TACTICAL ASSET ALLOCATION
Global Strategy
15 investment professionals
Multi-Asset Risk and Structuring
16 investment professionals
Multi-Asset, Macro, Rates and Implementation
60 investment professionals
Multi-Manager Strategies
19 investment professionals
FUND SELECTION / PORTFOLIO CONSTRUCTION
REBALANCING AND REVIEW
Multi-Asset Implementation
8 investment professionals
Investment Fund Governance
7 governance professionals
Strategic Asset Allocation Committee
8 investment professionals
Moody’s Analytics
Quantitative Risk Input
Quarterly update: Prince / presentations team
SAA Research & Portfolio Engineering
8 investment professionals
Source: Aberdeen Standard Investments, 30 September 2018

29. Illustrative risk levels%
MARKET RANGE
MANAGED RANGE
MULTI MANAGER RANGE
Quarterly update: Brian
Average
3 Year PA
5.0
6.6
7.8
9.0
10.1
4.5
6.1
7.6
8.8
9.9
4.3
5.9
7.3
8.6
9.5
The charts show the three year annualised rolling returns, based on weekly data (262 observations per fund), the minimum and maximum three year annualised returns and the average three year annualised return per risk strategy.. Institutional share class. Institutional share class Source: LipperIM, return calculated on a total return basis in GBP based upon a window of 156 weeks rolling forward 1 week, 30 September 2018

30. 3 styles that can be “mix and matched” Income and growth options
MyFolio summary
3 styles that can be “mix and matched”
Income and growth options
Expert resource employed across investment process
Performance and risk delivered in line with expectations to date
MyFolio Multi-Manager, Multi-Manager Income & MyFolio Market ranges are part of the Centra Complete CIP Rated Investment Solution for Growth
MyFolio funds are risk rated by: Defaqto Engage, Distribution Technology, Synaptics, Finametrica & Oxford Risk
© Owned by each of the corporate entities named in the respective logos. Companies selected for illustrative purposes only to demonstrate the investment management style and not as an indication of performance or investment recommendation. Source: Aberdeen Standard Investments

31. MyFolio Lookthrough Tool & Adviser Support
Use MyFolio Lookthrough Tool to:
Find fund information quickly and easily
Access the latest fund updates, reports and bulletins at fund range and share class level
Create customised client reports for up to 20 clients at a time, with the option to personalise with your photo and company logo
Chart the performance of the funds over a range of time periods
Access it online at

32. Thank you for listening and for any further enquiries please come see us on the stand

33. MyFolio performance update
Volatility
Charges**
3 Months
Return
12 Months
3 Years
Annualised Return
5 Years
Launch*
Total Return
Std Dev
AMC %
MyFolio Managed I
-3.0
-3.6
2.2
2.7
35.3
3.7
3.1
0.225%
MyFolio Managed II
-5.0
2.8
3.6
48.6
4.9
4.4
MyFolio Managed III
-7.0
-6.4
3.3
4.3
62.4
6.1
5.8
MyFolio Managed IV
-8.8
-7.9
4.0
5.0
70.4
6.7
7.3
MyFolio Managed V
-11.0
-9.7
5.4
79.1
8.8
MyFolio Market I
-2.6
-2.1
39.9
4.2
3.4
0.075%
MyFolio Market II
-4.5
-3.2
4.8
56.2
5.6
MyFolio Market III
-6.1
-3.9
6.4
5.7
68.6
6.5
MyFolio Market IV
-8.0
-4.9
7.8
6.6
8.2
MyFolio Market V
-10.1
-6.3
89.4
8.0
10.0
MyFolio Multi-Manager I
-2.8
-3.4
2.4
31.8
2.9
0.475%
MyFolio Multi-Manager II
-4.6
3.8
46.7
MyFolio Multi-Manager III
-5.8
4.1
58.0
MyFolio Multi-Manager IV
-8.1
5.2
70.1
7.0
MyFolio Multi-Manager V
-10.0
-8.5
5.5
76.6
7.1
8.5
FTSE All World Total Return Index £
10.3
Monthly update: Performance / ITT (Daniel / Finlay) for FTSE World Net Return Index £
sent from performance monthly
Data saved in source folder
* Launch: 01 October ** Institutional share class available through Standard Life Platforms. Source: Aberdeen Standard Investments, Morningstar, 31 December 2018, institutional accumulation share class performance shown, standard deviation based on 36 monthly data points. Past performance is not a guide to future results. Standard Life Investments claims compliance with the Global Investment Performance Standards (GIPS®). The fund specific data presented above is supplementary information to the Mutual Funds Managed Risk 1 composite report, which is enclosed in the Appendix for your reference
Strong performance

34. Mutual Funds Managed Risk I
Composite Name
Mutual Funds Managed Risk 1
Inception Date
Firm
Standard Life Investments
Currency
GBP
Report End Date
Anlzd Return (Composite)
Anlzd Return (Benchmark)
3 Year Anzld StdDev (Composite)
3 Year Anzld StdDev (Benchmark)
Dispersion
Market Value
Total Firm Assets
% of Firm Assets
Number of Portfolios
Dec 2008 --
Dec 2009
Dec 2010
0.01
-0.03
2,151,603
131,730,800,000
0.00 1
Dec 2011
7.25
8.31
37,272,889
123,331,600,000
0.03
Dec 2012
7.34
6.12
89,348,989
133,922,900,000
0.07
Dec 2013
4.99
3.97
2.78
3.03
128,265,213
149,971,000,000
0.09
Dec 2014
6.42
2.64
2.69
168,261,515
221,550,800,000
0.08
Dec 2015
1.95
1.09
3.10
2.99
226,984,978
227,454,110,000
0.10
Dec 2016
6.00
8.54
3.17
316,617,668
240,136,780,000
0.13
Dec 2017
4.79
4.19
3.27
3.04
465,084,901
229,686,080,000
0.20
Firm Disclosures
A complete list and description of all of the firm's composites are available from Aberdeen Standard Investments. There are no minimum asset levels set below which portfolios are not included in a composite. All performance calculations and returns have been calculated gross of management fees. All returns are presented on an all-inclusive basis and as such all capital gains interest income and withholding taxes have been taken into account in market valuations and returns. All indices are on a gross of tax basis apart from FTSE UK indices which are net of Withholding Tax. There are no Non-Fee-Paying portfolios included in any composite. The Daily True Time Weighted Rate of Return methodology has been used from 2001 apart from unitised Cash, Property, GARS and Myfolio products where NAV performance is used. Prior to this NAV performance was used for all products. Additional information regarding policies for calculating and reporting returns is available upon request. Dispersion is calculated using high/low difference. Where there are less than 36 months of returns, the Composite and Benchmark Standard Deviations have not been calculated. Aberdeen Standard Investments 'The Firm' consists of all fee-paying funds managed by Aberdeen Standard Investments and its Subsidiaries which include Aberdeen Standard Investments (Mutual Funds) Limited SLTM Limited Aberdeen Standard Investments (Corporate Funds) Limited Aberdeen Standard Investments (USA) Limited and Aberdeen Standard Investments (Hong Kong) Limited. Past performance results from Aberdeen Standard Investments Limited UK Firm and Aberdeen Standard Investments Limited Irish Firm have been linked to form the performance record of the new firm Aberdeen Standard Investments. The new firm was created on 01 Jan Standard Life Investments claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Aberdeen Standard Investments has been independently verified by PricewaterhouseCoopers LLP for the periods 1996 to The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.
Composite Disclosures
Includes part period return for 2010 from 01 November
The composite includes funds that invest in equities, absolute returns, fixed/variable rate interest bearing securities, and immovable property. The fund is benchmarked against a blend of 7.1% 3 Month Libor, 5.8% 6 Month Libor, 6.4% Bloomberg Barclays World Govt Inflation Linked (Hgd to GBP), 2.3% BofA Merrill Lynch Global High Yield (GBP Hedged), 4.9% FTSE All-Share, 1.9% FTSE World Europe x UK, 3.5% IMA UK Direct Prop, 2.3% JP Morgan GBI-EM Global Diversified Composite, 1.1% MSCI AC Asia Pacific ex Japan, 1.1% MSCI EMF, 1.4% MSCI Japan, 4.5% S&P 500, 8.3% Sterling Overnight Interbank Average, 6.4% WGILB ex UK 1-10Yr 70% + UK ILB 1-10Yr 30%, 21.5% iBoxx Sterling Non-Gilts, 21.5% iBoxx Sterling Non-Gilts (1-5 Y). The benchmarks are rebalanced regularly to ensure they remain in line with the chosen risk level. The benchmark prior to 01 October 2011 for the High Yield component of the blended benchmark was BofA Merrill Lynch Sterling High Yield. The new component is more appropriate to the strategy. The standard annual fee applicable to this composite is 0.225%, but individual fees are negotiated on an account basis. Derivatives may be used to manage the portfolio more efficiently, to reduce risk or to meet it's investment objective if this is permitted and appropriate.

35. Please note that the information shown below relates to the MyFolio fund range. Please note that the number contained in the fund name is not related to the synthetic risk and reward indicator contained in the Key Investor Information Document (KIID) Each fund has an individual risk rating and the below risks relate to all 25 MyFolio funds. For specific fund risks, please refer to the KIID and Prospectus on our website, (a) The fund invests in securities which are subject to the risk that the issuer may default on interest or capital payments (b) The fund price can go up or down daily for a variety of reasons including changes in interest rates, inflation expectations or the perceived credit quality of individual countries or securities (c) The fund invests in equities and equity related securities. These are sensitive to variations in the stock markets which can be volatile and change substantially in short periods of time (d) The use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as a failure amongst market participants. The use of derivatives may result in the fund being leveraged (where market exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will be to magnify losses. The fund does not make extensive use of derivatives

36. For professional clients only – Not for public distribution
GR-DIS
For professional clients only – Not for public distribution
Past performance is not a guide to future results. The value of investments, and the income from them, can go down as well as up and clients may get back less than the amount invested. Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments The views expressed in this presentation should not be construed as advice or an investment recommendation on how to construct a portfolio or whether to buy, retain or sell a particular investment. The information contained in the presentation is for exclusive use by professional customers/eligible counterparties (ECPs) and not the general public. The information is being given only to those persons who have received this document directly from Aberdeen Asset Managers Limited or Standard Life Investments Limited (together “Aberdeen Standard Investments”) and must not be acted or relied upon by persons receiving a copy of this document other than directly from Aberdeen Standard Investments. No part of this document may be copied or duplicated in any form or by any means or redistributed without the written consent of Aberdeen Standard Investments. © 2018 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to: The Morningstar Analyst Rating for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the Morningstar Analyst Rating for a fund. Morningstar Analyst Ratings are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund’s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term. Neutral represents funds in which our analysts don’t have a strong positive or negative conviction over the long term and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term. Long term is defined as a full market cycle or at least five years. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit

37. For professional clients only – Not for public distribution
GR-DIS
For professional clients only – Not for public distribution
The information contained herein including any expressions of opinion or forecast have been obtained from or is based upon sources believed by us to be reliable but is not guaranteed as to the accuracy or completeness. Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is licensed for use by Standard Life Aberdeen*. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Standard Life Aberdeen* or any other third party (including any third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to which Third Party Data relates. * Standard Life Aberdeen means the relevant member of Standard Life Aberdeen group, being Standard Life Aberdeen plc together with its subsidiaries, subsidiary undertakings and associated companies (whether direct or indirect) from time to time. Aberdeen Asset Managers Limited is registered in Scotland (SC108419) at 10 Queen’s Terrace, Aberdeen, AB10 1XL, Standard Life Investments Limited is registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL, and both companies are authorised and regulated in the UK by the Financial Conduct Authority. GB