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European Corporate Bond Fund Sicav breaks EUR1bn


Standard Life Investments’ European Corporate Bond Fund Sicav has broken the EUR1bn barrier in assets under management.

Launched in September 2003 and managed by Craig MacDonald, with Saida Eggerstedt as deputy manager, the fund aims to provide consistent risk¬-adjusted outperformance from the European credit market by investing in a wide range of investment grade corporate bonds.

The fund has produced top quartile performance over one, three and five years and since launch.  It has also outperformed its benchmark, the iBoxx European Corporate Bond Index, over the same time periods.

Barry MacLennan, investment director – mutual funds, Standard Life Investments, says: “With credit spreads at current levels, corporate bonds remain attractive, both in income and value terms. But it is essential, in this environment, to choose a fund manager who will focus on avoiding problem names as well as spotting winning opportunities. The European Corporate Bond Sicav draws on the insights of our highly ¬experienced corporate bond team and benefits from our own in-¬house credit matrix. It uses our Focus on Change philosophy which enables us to identify opportunities that the market has not factored in, with a particular focus on choosing the right companies to invest in.”

MacDonald adds: “The fund’s performance has consistently benefitted from the strong single name focus through the liquidity crisis in 2008 as well as the recovery in spreads in 2009. As companies have been able to refinance and extend their debt profile, the fund has bought into BBB-¬rated names like Xstrata, Pinault Printemps, Lafarge and AB Inbev. Exposure in the financial sector has been increased gradually over 2009 but still with a focus on choosing the strongest banks.”

Standard Life Investments’ Sicav offering provides investors with access to 18 sub funds across a diverse range of geographies and sectors in both equities and bonds. The funds have public distribution status in Denmark, Finland, Germany, Hong Kong, Ireland, Luxembourg, Norway, Sweden and the UK.

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