SLI launches short duration version of inflation-linked bond fund

Standard Life Investments has created a short-duration version of its £844m Global Index-Linked Bond fund.

The new fund will be run by head of real returns Jonathan Gibbs and real returns investment director Adam Skerry. The pair runs the Standard Life Global Index-Linked Bond fund that was launched just more than a decade ago.

With a worldwide universe ranging from sovereign bonds to derivatives, the new fund will be protected against inflation, but will have a much lower exposure to interest rate hikes.

Gibbs says the new fund uses the same strategies and instruments as the main fund, but offers more choice for investors.

“Global inflation portfolios have provided attractive returns and strong diversification qualities for many years,” he says.

“This new offering allows investors to access this diversification, and the global opportunity set, with a lower exposure to duration risk.”

The fund’s ongoing charges figure is 1.13 per cent for retail investors and 62 basis points for institutional investors. Retail share classes sport a 4 per cent entry charge as well.