Fixed IncomeApr 15 2014

Ignis bond fund under review by Morningstar after SLI deal

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Morningstar has stripped Ignis’s £247.4m Corporate Bond fund of its ‘bronze’ status as a result of the asset manager being taken over by Standard Life Investments.

The fund ratings agency has placed the fund under review, with Morningstar stating: “While we believe the fund is an attractive proposition for long-term credit investors and continues to be run diligently by fund manager Chris Bowie, we feel that until there is more clarity regarding the future of the proposition, it is prudent to place the fund’s rating under review at the current time.”

Managed by Chris Bowie with Adam Walker since December 2009, the fund has achieved a 102 per cent return over the past five years to April 11, according to FE Analytics, outperforming the IMA Sterling Corporate Bond sector’s average of 61 per cent for the term.

It was announced at the end of March that, subject to approval from the Financial Conduct Authority, Standard Life Investments was to buy Ignis Asset Management from Phoenix Group for £390m.

Ignis declined to comment.