Standard Life Canadian Equity Class

1.
2.
3.
The following key elements
outline the approach the
Tactical Income Fund will
base itself upon:
Manage overall volatility:
The fund will utilize an active asset allocation
policy to dynamically aim to protect against
down markets, while opportunistically
investing in positive market conditions
by seeking any yield producing security
or market, based upon its projected
return profile.
Produce income:
By investing in dividend-paying stocks and
higher yielding interest-bearing bonds,
the fund will seek to produce a total return
sufficient to fund the stated monthly
distributions with excess returns contributing
to future portfolio growth.
Rely upon a trusted and proven
investment platform:
Standard Life Investments will be combining
its broad and seasoned expertise to manage
the solution for your clients:
a. Corporate bonds (previously Corporate
High Yield Bond) and duration strategy:
Utilizing the investment strategies
underlying the Corporate Bond Fund, the
fixed income component of the Tactical
Income Fund will be invested in higher
yielding, investment grade corporate
bonds and will be managed with an
unconstrained duration management
guideline to manage and profit from
swings in bond yields.
b. Dividend equity strategy:
We originally pioneered dividend investing
in 1994, and will feature higher-yielding
dividend-paying securities in the Tactical
Income Fund – evaluated to deliver income
and dividend growth over an entire cycle,
similar to the strategy currently employed in
the Monthly and Diversified Income Funds.
c. Dynamic asset allocation:
As part of the Standard Life Investments
culture, focusing on both return and risk,
the Tactical Income Fund will benefit from a
long history of successful active asset
allocation decision making. With an
unconstrained asset allocation – that can
run from 100% fully invested in equities, to
100% fully invested in bonds or cash – the
strategy is based on our proven
institutional asset allocation process, so as
to produce returns that meet the
expectations of investors, with a particular
focus on aiming to protect capital in down
markets, while allowing returns to be
captured in up markets.
The Quarterly Review 11