SLI converts portfolio to launch short duration fund

Standard Life Investments has launched a short duration credit fund following the conversion of its existing Select Income fund.

Run by recent hire Daniel McKernan (pictured), the Short Duration Credit fund offers investors reduced exposure to interest rate risk, and complements the wide spectrum of fixed income funds already offered by the fund manager. SLI converted its Select Income fund yesterday after shareholders approved the changes. The Short Duration Credit fund will see the duration inherent in the corporate bonds it holds reduced through the use of derivatives. Its benchmark has also changed from the IMA Sterling Corporate Bond peer group average to a custom-hedged corporate bond index. McKerna...