STANDARD Life Investments has launched a fund which aims to address the potential for significant drawdown that could arise because of increased volatility in the fixed income market. The Short-Dated Corporate Bond Fund is an actively managed, diversified portfolio of predominantly sterling-denominated corporate bonds with a maturity of less than five years.

Lead fund manager Daniel McKernan noted that with core government bond yields at, or close to their lows, investors have become increasingly worried about the price impact of rising interest rates.