Standard Life Investments (SLI) has launched its eighth corporate bond fund, to be managed by sector stalwarts Daniel McKernan and Mark Munro.
The fund, which aims to reduce the impact of rising yields and address fixed income market volatility, will primarily invest in sterling-denominated shorter-dated corporate securities, with a maturity of less than five years.
McKernan, head of sterling investment grade credit, and Munro, credit investment director, both joined SLI in 2013. Since, they’ve come to manage three of the firm’s funds; AAA Income, Investment Grade Corporate Bond and Short Duration Credit.
Other vehicles in the firm’s eight-strong corporate bond range include the Ethical Corporate Bond and Short Duration credit.
McKernan said that with macro uncertainty increasing, and evidence the global economy is nearing the end of the credit cycle, the firm expected 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 they offer an excellent risk-adjusted option for investors,” he added.
Standard Life Investments manages assets of £269 billion (€299 billion) as of June 30 2016.
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