Standard Life Investments’ (SLI) Strategic Bond fund is likely to increase its exposure to emerging market debt, according to the managers.
SLI adjusted the mandate on the £137.5m fund three years ago this month to give its managers more flexibility, so they now can invest across the fixed income spectrum. The move has produced top-quartile returns.
The team consists of Daniel McKernan, Mark Munro, David Ennett and Sebastian Mackay.
The managers said they had been cautiously adding some emerging market debt positions since the spring of 2013. This was prompted by comments made by former Federal Reserve chairman Ben Bernanke about the end of US quantitative easing, which had sent the asset class into a large correction.
Mr Ennett said: “We have started to add small positions in emerging markets, trying to get the top picks and best ideas.
“But we are going to start to use the emerging market sovereign team more and more.”
