Standard Life Investments has launched a Short Duration Credit fund for Daniel McKernan, who was recruited from Swip last year.
The fund is the successor to Standard Life’s Select Income fund, which has been renamed and restructured. The principal change entails the fund reducing its duration risk through the use of derivatives, while its benchmark has switched from the IMA Sterling Corporate Bond sector average to a custom-hedged corporate bond index.
‘We continue to see value in credit spreads, but recognise that some investors are increasingly concerned about the negative impact that rising rates could have on the performance of corporate bonds,’ McKernan said.
‘The Short Duration Credit fund enhances the choice of fixed income funds we have available to retail investors and provides investors access to our credit selection expertise, but with materially less exposure to changes in interest rates.’