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Adviser  >  News  >  July 2008  >  Notification of Changes to Scottish Life's Managed Strategies Range

Notification of Changes to Scottish Life's Managed Strategies Range

Since September 2004, Scottish Life has offered a governed investment range known as Managed Strategies. One of the key features of our Managed Strategies is that they are reviewed every quarter by our Investment Advisory Committee (IAC), to ensure that they continue to hold the appropriate asset allocation for customers no matter the economic outlook.

Introduction of tactical overlay

At the latest Committee meeting held on the 18th June 2008, the IAC decided to enhance this process and introduced a tactical overlay.

A tactical overlay is an alteration to the benchmark asset allocation based on RLAM’s views on current market conditions. It is a guide to the weightings applied to the benchmark asset allocation to give a new, quarterly asset allocation.

The overlay allows the IAC to exploit current market opportunities without moving away from the benefits of long term asset modelling. Visit the Meeting Summaries page for full details of this meeting.

This tactical overlay and its effects on asset allocation are detailed below:

	Cautious portfolios		Balanced portfolios		Adventurous portfolios
	Allocation	Tactical Allocation	Allocation	Tactical Allocation	Allocation	Tactical Allocation
Equities (Default fulfilment by SL Global Managed fund)	27.0%	-0.5%	55.0%	+0.0%	75.0%	+0.0%
Property (Fulfilled by SL Property fund)	12.5%	-5.0%	12.5%	-5.0%	13.5%	-4.0%
UK Corporate Bonds (Fulfilled by SL duration corporate bond funds)	33.0%	+3.0%	20.5%	+3.0%	11.5%	+4.0%
UK Index Linked Bonds (Fulfilled by SL duration index linked funds)	27.5%	+2.5%	12.0%	+2.0%	0.0%	+0.0%
Total	100%		100%		100%

Table correct as of 14th July 2008.

Impact on clients

Clients investing in Managed Strategies from the 14 July 2008 will benefit from these changes.  For existing clients, they will start to benefit from this during July depending on the date they originally took out the policy.  Policies will move over to the new basis on the day after their policy start date.  Therefore if the policy started on the 18th of the month, it will switch into the tactical overlay on the 19 July 2008.

Ongoing review of tactical overlay and asset allocation

The tactical overlay, along with the usual asset allocation governance of the Managed Strategies benchmarks, will be reviewed at every IAC meeting. The new process allows for inter-quarter tactical updates if required.

Additional information

For more information on these changes, visit the Managed Strategies page.