Risk management and control

For all investment portfolios, proper risk management and control are vital to avoid exposing investors to any unnecessary risk. We rigorously monitor and manage risk at a number of different levels, from individual portfolios up to company level risk. For our multi-asset portfolios, there is a particular requirement to understand portfolio risk and how all our investment positions might interact within the portfolio. For this reason, we have dedicated teams of risk specialists whose role is to support the managers of our various multi-asset products.

Our extensive risk management expertise and infrastructure allow us to effectively monitor, understand and control risk across our diverse range of multi-asset portfolios.

There are four distinct groups engaged in our multi-asset risk management process.

  • The multi-asset risk and structuring team is an integral part of the multi-asset investing team (MAIT). It provides our multi-asset managers with ongoing insight into the risk profiles of portfolios and of individual investment positions. The risk specialists use both proprietary and industry standard tools to measure and monitor risk.
  • Working independently of the MAIT, the investment risk team monitors performance and risk of all of the portfolios managed at Standard Life Investments.
  • Also working independently of the MAIT, the investment governance team ensures the consistency and integrity of our investment process versus each specific portfolio mandate.
  • The risk & exposures committee authorises all investment instruments and counterparties that may be used, and monitors exposures.

Additionally, we carry out extensive checks daily, to ensure robust pricing of all our portfolios by our independent administrator and custodian.