View more on these topics

Standard Life offers inflation-proofed fund

Standard Life Investment&#39s global index-linked bond fund aims to provide income by investing mainly in government and corporate inflation-linked bonds. Although the fund may provide capital growth, this is not its main priority.

The fund is an addition to Standard Life Investments&#39 range of lower-risk funds and it will have at least 15 holdings to ensure the portfolio is diversified.

As well as investing in index-linked bonds, the fund can also invest in conventional government bonds and investment-grade corporate bonds but these must total no more than 20 per cent of the portfolio.

The fund is managed by Jonathan Gibbs, who joined Standard Life Investments in 2002 from Henderson. At Henderson, he was divisional director and a member of the global interest rate team. Prior to that he spent time at the Kuwaiti Investment Office and the Bank of England.

When managing the fund, Gibbs is able to deviate from the benchmark index – the Barclays Global Inflation Linked Index &#45 within a set range. In terms of duration, the fund can be minus or plus two years relative to the benchmark weightings. In geographical terms, the fund can deviate by up to 15 per cent either side of the benchmark for the US, UK and France and 10 per cent either side of other countries. Overseas bonds currently dominate the portfolio at 72.4 per cent while 18.9 per cent is invested in UK index-linked bonds. The remainder is split between cash and gilts.

Inflation rises can erode the value of investments over time, so a fund that offers retail investors protection against this on a global basis could be useful. However, the fund&#39s main focus on index-linked bonds means that as well as lower risks relative to other bond funds, the returns generated will also be low. It will be up to the fund manager to create a portfolio that can successfully incorporate a small amount of conventional bonds to provide a worthwhile returns while remaining within the low-risk remit.


Mark Chilton on Mortgages

Over the past few months, while negotiating the structure of Pure!y with our investors, the word lacuna kept cropping up, meaning a hiatus or gap in the logic of an argument. I think I have found a lacuna in the mortgage market. Come M-Day, the FSA will place more emphasis than ever on price as […]

Nobles help Invesco make VCT debut

Noble & Company is promoting the venture capital trust debut from Invesco Perpetual. The Invesco Perpetual Aim VCT will invest in the alternative investment market and will be managed by the team which already runs several smaller companies funds. Nobles and Invesco Perpetual intend to raise up to £40m for the VCT, which will be […]

Cavanagh counts cost of Ernst & Young deal

Cavanagh Group&#39s operating loss increased from £70,000 to more than £1m in the six months to April 30 as the firm started to integrate acquisition Ernst & Young Financial Management. Cavanagh reported losses of £1.08m, around half of which it blames on the non-recurring costs of the £3m move for EYFM. However, turnover more than […]

Silent treatment from Woolwich

Two years ago, I placed clients on a two-year discounted mortgage with the Woolwich. Our clients have had their letter stating that they are moving onto the variable rate and are keen to review their mortgage options. It is a good case with a low loan to value ratio and no arrears. Our clients signed […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm