Standard Life Investment has added global credit and REITs to its MyFolio fund range in its latest quarterly review of its strategic asset allocation.
In an update shared with its intermediary investors, SLI said it had introduced global corporate bonds and short-dated global corporate bonds, both hedged back to sterling.
The allocation to global corporate bonds goes up to 11.8 per cent in the MyFolio Managed Income and Multi-Manager Income funds, in the lower to medium risk portfolio. Those funds also have the highest allocation of global short dated bonds at 3.3 per cent.
The purpose of the new allocation is to diversify risk and sources of return. “The global corporate bond market is currently over ten times the size of the sterling market,” the letter says.
The fund range’s existing allocation to REITs, which have been held as a tactical position for over a year, will become a permanent feature of the strategic asset mix. “This will provide the funds with improved liquidity and enhanced diversification across global property markets,” SLI tells investors.
The highest allocation to REITs is 3 per cent in the MyFolio Managed Income and Multi-Manager Income medium risk portfolios.
The changes are effective immediately.