Standard Life launches short-dated corporate bond fund

Standard Life Investments has launched a short-dated corporate bond fund, which aims to reduce the impact of rising yields, while still targeting a better return and income than similar maturity government bonds.

The fund intends 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.

It is managed by Daniel McKernan, head of Sterling Investment Grade Credit, and Mark Munro, investment director of Credit. It will be available as an OEIC and complements the existing suite of corporate bond funds across the Standard Life OEIC range

“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,” McKernan said.

ABOUT THE AUTHOR
Alicia Villegas
Alicia Villegas speaks Spanish and Italian and is Iberia Correspondent for InvestmentEurope. She was shortlisted for the Rising Star Award at the British Media Awards 2017 and Writer of the Year at the PPA Independent Publisher Awards 2016. Previously, she worked for almost three years at the seafood business website Undercurrent News as a market reporter. In Spain, she also worked for more than five years for several media outlets.

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