Investors in the Santander Strategic Bond fund will now be exposed to a broader investment remit, which was previously run as a cash-like product with a Libor benchmark but can now invest across the sterling fixed-income spectrum following an overhaul.
Santander Asset Management has ditched its fixed income team in Madrid for the fund and moved it under the auspices of the London-based sterling fixed income team.
Management of the £21m fund moved to Azim Meghji, head of UK fixed income, and David Scammell, senior bond fund manager, at the start of July.
The fund now sits alongside the Santander Corporate Bond fund and Santander Government bond funds, also managed by the same team, to provide a wider range of UK fixed income products for clients.
Speaking to FTAdviser Mr Meghji said: “Having the flexibility to invest across the sterling fixed income spectrum is important in seeking out value in fixed income markets, especially given the current level of yields.
“The redesigned Santander Strategic Bond fund has the ability to do exactly this. With a benchmark unconstrained approach we will look to allocate across government bonds, investment grade and high yield bonds over the cycle with the ability to take conviction views from both a top down and bottom up perspective when appropriate.”
The Santander Strategic Bond Fund’s investment objective and aim is to provide an opportunity for capital growth and income. The fund invests primarily in a diversified portfolio of investment and sub-investment grade securities.
As of 29 August 2014, the top 10 holdings of the fund were HM Treasury gilts, Coventry Building Society, Annington Finance, AA Bond Co Ltd, Anglian Water (Osprey) Financing PLC, Time Warner Cable Inc, Amlin, Axa, Verizon Communications and Porterbrook Rail Finance Ltd.
The fund was 36.7 per cent cash at that date.
emma.hughes@ft.com
