SLI launches short-dated bond fund

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Standard Life Investments has today announced it is launching the Short-Dated Corporate Bond fund for investors to navigate fixed income volatility.

The fund will investment in predominantly sterling-denominated corporate bonds with a maturity of less than five years.

It will be managed by Daniel McKernan, head of sterling investment grade credit, and Mark Munro, investment director for credit.

It has an annual management charge of 1 per cent and an upfront charge of 4 per cent.

McKernan says: “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”.