Standard Life Investments enters into a strategic alliance with Chuo Mitsui

What is happening?
On 28th July 2010 Standard Life Investments entered into a strategic alliance with Chuo Mitsui, one of the largest trust banks in Japan, for reciprocal distribution and asset management services.

The agreement will result in Standard Life Investments providing stock selection advice to Chuo Mitsui for their global equity funds, whilst Chuo Mitsui will provide asset management and advisory services for Standard Life Investments Japanese equity portfolios.

We are delighted that following a period of lengthy discussions and due diligence both in the UK and Japan, by both companies, we have reached this agreement.

Am I affected and how is this being communicated?
1) If you invest in fund GG, then you will receive a letter outlining the details of the impact on your funds.

2) If you are investing in the following funds then you are affected by this announcement and the details are outlined below.
 

3) If you are invested in fund FJ, Pension Japanese Fund, then whilst the fund does invest in Japanese Equities you are not directly affected by this announcement.

What does it mean for me?
If your funds are affected by the announcement (see points 1 and 2 above) then Standard Life Investments will delegate the day-to-day management of the Japanese equity component within the fund to Chuo Mitsui. The Fund names, codes, objectives, guidelines, risk parameters and fees remain unchanged as a result of these developments. Importantly, Standard Life and Standard Life Investments will retain overall responsibility for the Fund, including governance and adherence to the Fund guidelines. The Fund will continue to be subject to the rules and guidance as set out by the Financial Services Authority under the Financial Services and Markets Act 2000. These changes will take affect from 1st September 2010.

For those of you that invest in Japanese Equities but are not impacted (see point 3 above), please note that Standard Life Investments will continue to manage your fund and will benefit from using Chuo Mitsui's research. The Fund names, codes, objectives, guidelines, risk parameters and fees remain unchanged as a result of these developments.
Why is Standard Life entering into an alliance with Chuo Mitsui?

We believe this strategic alliance will prove beneficial to you by providing direct access to the investment management expertise of one of the most successful active Japanese equity managers in the market place, who have built an experienced and talented team with an exceptional track record.

Why are we retaining an in-house Japanese Equities team?
Standard Life Investments are retaining all of our existing Japanese Equities team and we are gaining two Chuo Mitsui analysts in Edinburgh. This helps to integrate Chuo Mitsui's enhanced Japanese analysis and research across our Japanese, Asia Pacific and Global Equities portfolio in a consistent manner.

What do you need to do now?
Unless you wish to change your choice of investment funds, you don't need to do anything as your funds will continue to be administered by Standard Life Investments and you will retain the same fund code and policy number. From 1st September 2010,the underlying investments in your fund will be managed by Chuo Mitsui.

If you are unsure about the suitability of your current choice of funds or require advice, you should contact your financial adviser. If you don't have an adviser please contact Standard Life in your usual way or you can visit www.unbiased.co.uk

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