- Why invest in equities?
- Why invest with Standard Life Investments?
- Our equities funds
- Investment philosophy and process
- About our equities team
- Global equities
- Contact us
- Fixed income
- Real estate
- Absolute returns
- Absolute Return Global Bond Strategies
- OEICs & unit trusts
- Investment trusts
- Fund prices
- All OEICs and unit trusts
- Investment trusts
- Standard Life Funds
The weighted average length of time to the receipt of a bond’s benefits (coupon and redemption value). Duration is a measure of the sensitivity of a bond’s price to a change in interest rates, expressed as a number of years. Using interest rate swaps, we can implement duration strategies that allow us to benefit from particular changes in market interest rates.
Where an index or asset appears to offer good value relative to another. For example, we may prefer the UK FTSE All-Share Index relative to the German DAX Index.
A property of some investment strategies where there is the right, but not the obligation, to participate in the change in value of an underlying security. This right, or optionality, may be good value and we can invest to take advantage appropriately. Strategies implemented using options can also express a view on implied volatility, which is the future level of volatility anticipated by the market, and is an expression of the market price of optionality.
The additional yield above that from government bonds received by investors for holding a bond with a particular credit rating. For example, the spread on AAA-rated debt will be less than the spread on BBB-rated debt. We can profit from a change in credit spreads by buying or selling credit default swaps.
The choosing of individual securities to be held within a portfolio. It is possible to isolate the security selection skills of a fund manager by investing in their portfolio alongside an index future to guard against market falls.
The inflation rate necessary for an index-linked bond to deliver the equivalent total return to a conventional bond of equivalent maturity. We can profit from break-even rates where our view on the future level of inflation differs to the market’s view.
Short-term lending or bond market rates. We can profit from short rates strategies if our view on current levels differ from those of the market.
Real Estate Investment Trust