SLI’s Global Index Linked Bond Fund breaks £100M

Global fund manager, Standard Life Investments has announced that its highly successful Global Index Linked Bond Fund has broken the £100m mark.

The fund has produced top decile performance over six months, one and two years and since its launch on 19th May 2004, has returned 20.7% to investors - outperforming the IMA Global Bond sector average by 8.1%.

The fund is aimed at providing a low risk investment vehicle generating real returns in a global environment. Investing primarily in sovereign-based and corporate inflation linked debt, it also invests in conventional government bonds, investment grade corporate entities, and other interest bearing securities issued globally. Returns are generated from a global portfolio of bonds and derivatives, the majority of which are linked to the changes in the levels of inflation indices in their country of issue.

Head of Mutual Fund Investment at Standard Life Investments, Jacqueline Kerr, said: “We are delighted that our Global Index Linked Bond Fund has reached this most impressive milestone. Set against other bond fund alternatives, the performance of this fund is outstanding and our investors are reaping the benefits of this. For example – an investor who put £1000 into the fund at launch will have seen their investment grow to £1207.

“The fund has been most popular with investors seeking to limit the impact of inflation on the value of their investment. It’s also been ideal for those investors wishing to meet future liabilities that are linked to inflation, or to those looking for diversification. “The success of the fund is down to the astute investment expertise exercised by Jonathan Gibbs, who is able to draw on the knowledge and experience of government, inflation, currency and corporate bond experts in our highly successful global bond team.”

Jonathan Gibbs, fund manager of the Global Index Linked Bond Fund, commented: “It has been very exciting to see the growth of this fund, which offers an innovative approach to bond investing, and a significant source of return and diversification for its investors. In the current environment of tighter risk constraints and rising commodity prices, we expect the fund to continue to perform well.”