In a note to its intermediary audience, SLI said the changes were made following its latest monthly strategic asset allocation review in conjunction with Moody’s Analytics.
The MyFolio team, led by Bambos Hambi (pictured), said introducing both all maturity and short-dated global corporate bonds enabled it to access a “larger and more liquid bonds universe” outside the UK.
“The global corporate bond market is currently over ten times the size of the sterling market. Investment here therefore serves to both diversify risk and broaden each fund’s range of return sources,” it added.
Six credit funds have been added across the range, including Vanguard’s short and normal duration funds for passive exposure, SLI’s whole of market duration fund and its recently-launched short dated fund, and Robeco’s whole of market duration fund and short duration fund.
Both the global corporate bonds and short-dated corporate bond exposure is hedged back to sterling.
The range has also made a change to its growth assets by adding global Reits as a longer-term strategic holding. It previously used the asset class as a tactical play for more than a year.
“This will provide the funds with improved liquidity and enhanced diversification across global property markets,” the note added.
The changes apply to the MyFolio Market Funds, Managed and Multi-Manager Funds and the Managed Income and Multi-Manager Income funds
