“We see demand from clients wanting to diversify the fixed income part of their portfolios. It’s a tool to manage the interest rate sensitivity,” Dan Atwood, proposition manager of retail index funds, said.
“Shorter dated products will reduce the duration of portfolios.”
He added that L&G was looking at the possibility of launching further products in this category.
The Short Dated Sterling Corporate Bond Index Fund is designed to track the Markit iBoxx Sterling Corporates 1-5 Index. This index is comprised of investment grade corporate bonds denominated in sterling that have a maturity of between one and five years.
The annual management charge is 0.15%, with plans to make the fund available through all major intermediary platforms.
