SLI's Sutherland abandons traditional gilts in favour of high-yield bond plays

Standard Life Investment's Andrew Sutherland is shifting his Strategic Bond fund away from tradition...

Standard Life Investment's Andrew Sutherland is shifting his Strategic Bond fund away from traditional gilts towards index-linked variations and high-yield bonds. The fund, which has received £20m of inflows since its February launch date, is currently positioned 65% in corporate bonds and 35% in gilts. But Sutherland, who is head of corporate credit at the group, says new money coming into the fund would be put into high-yield bonds rather than gilts. Sutherland, who also holds senior banks, utilities and telecoms, says he is surprised by the extent to which corporate bonds have unde...