Standard Life Investments

Enhanced-Diversification Growth

Enhanced-Diversification Growth aims to generate equity-type returns over the economic cycle (typically five to seven years in duration), but with less than two-thirds of equity market volatility.

Enhanced-Diversification Growth is essentially a diversified growth strategy. However, unlike many traditional diversified growth approaches, it is not wholly reliant on different growth assets to provide its return and diversification benefits. While it holds a range of market return investments (such as equities, bonds and real estate across the globe) it also uses enhanced-diversification strategies to provide both additional sources of return and high levels of diversification.

Within Enhanced-Diversification Growth, we can use the diversification strategies and investment resource of our multi-asset specialists. We can therefore target enhanced, lower-risk performance versus conventional diversified growth portfolios, in a cost-effective manner.

Benefits of the Enhanced-Diversification Growth portfolio

  • Looks further afield for diversification opportunities – is not reliant only on growth assets to provide diversification.
  • Smoother investment journey – utilises return-seeking, enhanced-diversification strategies, providing greater resilience in times of market stress.
  • Experienced team and established process – the portfolio is constructed around our established and renowned process for generating strategies, combining strategies with conventional assets to mitigate risk, and risk-based portfolio management and control.