Standard Life Higher Income Fund Retail Income
HL comment
Our view on this Fund
This fund generally has a bias in higher risk high yield bonds. As the risk of defaults has risen Erlend Lochen has used the fund’s flexibility to invest a large percentage of the fund (currently 26%) in government bonds which has been a positive move. Additionally, he is staying away from more uncertain areas like retail and autos preferring companies with high earnings visibility, like telecoms, which should drive longer term performance.
12-11-2008
Information from the fund manager
Please note: The information in this box has been provided by, and is issued by, the fund manager and not Hargreaves Lansdown.
HL group comment: Standard Life Investments
Our view on this Fund Management Group as a whole
The Standard Life Group originally operated only through branches of the mutual company in the UK and certain other countries. Its origins date back to the 1800s but it was in the 1990s that the group sought to diversify its operations into areas which complemented its core life assurance and pensions business, with the intention of positioning itself as a broad range financial services provider. Standard Life Investments was officially set up as a separate arm of the Standard Life Group in 1998 with the aim of establishing it as an independent investment management business providing services to both the group and third party retail and institutional investors. In July 2006 Standard Life became a publicly listed company with its headquarters based in Edinburgh, the UK's second centre of investment excellence. The investment arm has a good pool of home grown talent and they currently manage a broad range of collective investment funds. While they have traditionally been well known for their fixed interest funds, they have quietly been building an excellent track record on many of their equity funds. They are certainly worth a look when it comes to their investment offering.
13-09-2007
HL sector comment: GBP High Yield
Our view on this sector
Yields on many investment grade and higher risk high yielding bonds have gone up dramatically in the last few months as many investors have sold forcing prices down and yields up. The level of defaults being priced in looks historically high and are far greater than seen during the Great Depression giving an opportunity for investors to tap into high yields and potentially capital growth as global economic concerns ease. Recent sector changes make it easier for investors to compare like with like in the corporate bond universe.
20-11-2008