Standard Life Investments Short-Dated Corporate Bond Fund
27 October 2016
Global asset manager, Standard Life Investments, today launched the Short-Dated Corporate Bond Fund. The Fund aims to address the potential for significant drawdown that an increase in fixed income market volatility could bring, through an actively managed, diversified portfolio of predominantly sterling-denominated corporate bonds with a maturity of less than five years.
With core government bond yields at, or close to their lows, investors have become increasingly worried about the price impact that rising interest rates will have on their fixed income allocations. By utilising our strong global stock selection process and focusing on shorter-dated corporate securities, the Fund aims to reduce the impact of rising yields, while still targeting a better return and income than similar maturity government bonds.
The Fund is managed by Daniel McKernan, (Head of Sterling Investment Grade Credit), and Mark Munro, (Investment Director, Credit) and will leverage Standard Life Investments’ proven credit selection process and philosophy. It will be available as an OEIC and complements the existing suite of corporate bond funds across the Standard Life Investments OEIC range*.
Daniel McKernan commented: "With macro uncertainty increasing and evidence that we are drawing towards the end of the credit cycle, we would expect to see an increase in volatility in both government and credit markets. While short-dated corporate bonds are not immune to any increase in market volatility, we believe that they offer an excellent risk-adjusted option for investors".