The Dynamic Distribution fund from Standard Life Investments is a fettered fund of funds, which means that the Fund invests primarily in other funds already run by Standard Life Investments.

The Fund capitalises on Standard Life Investments' expertise in three key areas:

• UK Equities
• UK Bonds
• and Property.

Actively managed
It is actively managed at two levels; both at asset allocation and at stock selection level. The asset allocation considerations are the yield required for the Fund, Standard Life Investments' House View and the relative value of the competing assets being looked at. The active stock selection is undertaken by the fund managers who run the underlying funds that the Dynamic Distribution Fund invests in. Examples of these funds include the UK Equity High Income Fund (an S&P AA-rated Fund), the UK Opportunities Fund (an AA-rated Fund), the Higher Income Fund which is also A-rated.

A fund with a competitive advantage
This Fund has a competitive advantage in two key areas:

• Firstly, it provides access to property, something that many competitors are unable to offer. SLI do this through investment in their UK Property Trust. That's the same Fund that the Select Property Fund gains its access to Direct UK Property through.
• The second area is that within the asset allocation strategy, Standard Life Investments do not adhere to the 60:40 rule. In other words, they do not allow the tax tail to wag the investment dog. SLI believe that the extra flexibility within the asset allocation strategy will produce better returns over the medium term for investors.

Top performance
The Dynamic Distribution Fund has already started to build a respectable track record since its launch in February 2006 of this year. On a bid to bid basis the Fund has produced a top decile performance over six months to 1 September 2006 - returning 2.75% over six months and outperforming the Cautious Managed sector average which had a slightly negative return over the same period. (Source: Standard & Poor's Micropal) Past performance is not a guide to the future. The value of investments can fall as well as rise.

It is available for direct investment, as an ISA, Capital Investment Bond, International Bond and for pension investment.

It should be noted that whilst the fund pays out a distribution through an ISA, through our Life and Pension platforms the distributions are reinvested.

If you would like more information on the Dynamic Distribution Fund, see the Distribution Fund Range summary,which provides more detail about this fund, and how it differs slightly from the SLI Distribution Fund. Alternatively, visit Focus on Funds.

No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of this content.

Links to other newsletter stories

Take a fresh look at DGP

60 Seconds with Andrew Milligan

A tax efficient way to save

Why sell offshore?

Spotlight on Property

With profits review programme

Our CIB just got better!

New funds added to sigma

Insight Property Fund

Additional expenses and Total Expense Ratios

'Playing it cool' with Distribution Bonds

Useful links

Your feedback

Tell us what you think of our newsletter.
Give feedback here

Newsletter preferences

•click here to update