Standard Life Investments wins high yield bond mandate

Standard Life Investments, the global fund manager, today announced that it has been appointed by Icelandic Securities Ltd to be the investment manager for a new High Yield Bond fund. The Icelandic Securities High Yield Bond Fund will be marketed to Icelandic investors. Icelandic Securities Ltd is one of the largest asset management companies in Iceland with €1bn (ISK 90bn) in funds under management.

Due to be launched on the 9 th February, the Fund has already secured initial commitments of over €12m (ISK 1.08bn) and has a target size of €40m (ISK 3.59bn) for the end of 2007. The mandate will be managed on a wholly discretionary basis and will be invested primarily in European high yield bonds. Alasdair MacLean, Investment Director – Credit, Standard Life Investments will be the portfolio manager responsible for the account.

Standard Life Investments has already been successful in managing a €33m (ISK 2.96bn) Global Government Bond Fund, launched in November 2005, for Icelandic Securities. Standard Life Investments manages more than €68bn in fixed income markets around the world.

Arne Vagn Olsen, Head of Marketing and Business Development, Icelandic Securities, said: "We are delighted to be once again joining forces with Standard Life Investments. This new fund will enhance greatly the range of products and services that we offer to our customers and provides a logical next step for Icelandic investors that have already began the process of overseas diversification through the Global Government Bond Fund.

“Investors will also be attracted by the prospect of good returns from Eurozone High Yield bonds in addition to the benefits from hedging the Fund from Euro into Icelandic Krona where the short rate differential seems set to remain substantial.”

Pat Woods, Investment Director – Benelux and Iceland, Standard Life Investments, said: “I’m very excited at the prospect of deepening our relationship with Icelandic Securities. Their decision to appoint us to manage this fund is recognition of our growing reputation as one of the leading bond managers in Europe. The European high yield bond market is an exciting one because of its relative immaturity but few asset managers have the necessary resources to exploit the opportunities that exist. Standard Life Investments has both the scale and the expertise. That’s why I’m confident this new fund will meet many of the investment needs of both individuals and institutional investors in Iceland.”