Gill Hutchison reviews the IA Sterling Strategic Bond sector

A multi-faceted universe of funds

clock • 5 min read

There are clear reasons why strategic bonds funds have not participated in the 'duration party' of recent years but, asks Gill Hutchison, shouldn't investors expect them to be, well, more strategic?

Judged by relative performance alone, investors could be forgiven for feeling a little disappointed with their strategic bond funds. Over one, three and five years, the sector average performance is behind that of both the Sterling Corporate Bond and UK Gilts sectors. And while it is closer to the average return of the Sterling High Yield sector, it still lags over five years (source: Investment Week/Morningstar, to 09/09/16). Is this purely returns-based disappointment fair? On the basis of some of the fund marketing campaigns that have been deployed over the years, it can be argued it ...

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