Standard Life Investments

Press Release

Total return credit fund celebrates three year anniversary

28  September  2017

The Standard Life Investments Total Return Credit Fund marked its three-year anniversary on 24 September. Since launch, the fund has delivered an impressive 5.6%* with volatility of 3.7%*. This compares favourably both with high-spread, low-duration assets such as global high yield and low-spread, long-duration assets such as global government bonds.

Fund Manager, Mark Munro commented

Mark Munro
"An unconstrained approach to investing has helped to deliver attractive returns as it allows us to bring together our highest conviction bond ideas from across the global credit market in one portfolio. However, in a world of low yields and considerable uncertainty, limiting downside risks is just as important as capturing upside potential."

"By fusing our highest conviction credit ideas with select and tailored macro dampening strategies, we seek to capture the very best of the upside of credit markets but at the same time limit the downside in adverse market conditions"

The Total Return Credit Fund was launched in response to the low yield environment that has made it harder for investors to achieve an attractive level of risk-adjusted return from traditional credit markets. With interest rates likely to remain low by historical standards for the foreseeable future, investors may need to reappraise how best to acquire a return from credit more closely aligned with their requirements.

The Fund seeks a compelling return of 6-8% per annum from the global credit universe over the course of a market cycle, while reducing volatility and limiting drawdown risk. To target this, the Fund combines a high-conviction portfolio of our best global credit ideas with tailored downside protection strategies.

The Fund’s unconstrained mandate allows it to invest across global credit markets, including global high yield, investment grade, emerging market sovereign and corporate debt, asset-backed securities and subordinated financial bonds. Managed by the Total Return Credit team, it brings together the proven credit selection expertise of our Global Credit team with the established risk-management techniques of our Multi-Asset Investing team.

*Standard Life Investments - annualised returns

NB This Fund is a Luxembourg SICAV