Finance

Higher Income Fund breaks the £1/2bn barrier

Higher Income Fund breaks the £1/2bn barrier

11 April 2007

Leading fund manager, Standard Life Investments today celebrates a major milestone for its Higher Income Fund as it passes through the £500m mark. The fund, which was launched on 7th February 2000, has returned top decile performance over 2 and 3 years and has been top quartile over the year to date, 1 and 5 years1.

The Higher Income Fund, managed by Erlend Lochen and Alasdair MacLean, has become a real success story for the bond team at Standard Life Investments. Over a five year period, the fund has returned over 52% to investors versus a sector average just over 43%2. The success of the fund has also been formally recognised by Standard & Poor’s and Forsyth OBSR through it being awarded ‘A’ and ‘AA’ ratings respectively.

Erlend Lochen, Head of High Yield and joint manager of the Higher Income Fund at Standard Life Investments, said:

“The good performance in the last five years has mainly been due to good stock selection and a significant weighting in the high yield within the fund. Over the last year, we have added two high yield analysts to the team in Arthur Milson and Samantha Lamb. We will continue to build a strong high yield team that can maintain and improve on our successful stock selection process to provide competitive investment performance going forward.”

Jacqueline Kerr, Head of Mutual Fund Investments at Standard Life Investments, said:

“It is really pleasing to be able to highlight the successes of our highly experienced bond team which is currently running several very strong performing funds. The Corporate Bond Fund, which is managed by Andrew Sutherland, has returned top quartile performance over the year to date, 2, 3 and 7 years1 and the Select Income Fund, managed by Alasdair MacLean, has been top quartile over 3 and 6 months, 1, 2 and 3 years1. The team’s ability to produce a robust and consistent performance has been widely recognised by Standard & Poor’s who have awarded all of our corporate bond fund range with either ‘A’ or ‘AA’ ratings.”

“We currently manage over £46bn in global fixed interest around the world, making us one of the five largest fixed interest managers in the UK3. The fact that our assets under management in this asset class have doubled over the last five years alone is a resounding endorsement that the excellent team culture and robust investment process we have in place, provides a recipe for success for our investors.”

1 Standard & Poors Micropal, bid- bid, for the period to 1st April 2007
2 Standard & Poors Micropal, bid-bid, 01/04/02 – 01/04/07
3 as at 31/12/06

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