James Foster: So why pick a strategic bond fund?

Benchmarking can cause issues

clock • 4 min read

The best opportunities in bond markets change over time, says James Foster, making it important to be able to take a flexible approach to fixed income investing

While traditional bond funds tend to restrict themselves to one area of the fixed income market, strategic bond funds can invest across the credit spectrum. They can move between government bonds and those issued by corporate borrowers - whether these are classed as ‘investment-grade' (bonds rated BBB or above) or ‘high-yield' (those rated below BBB). A flexible approach allows these funds to adapt quickly to changing market conditions. By owning the right bonds for each stage of the economic cycle, capital can be preserved in difficult times with the aim of profiting when conditions imp...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Private markets access for the masses is coming – get your operation in order

Private markets access for the masses is coming – get your operation in order

The merged entity carries approximately £310bn in private market assets

Ben Hammond
clock 24 February 2026 • 4 min read
Paws for thought: Understanding the power of pent-up demand in China

Paws for thought: Understanding the power of pent-up demand in China

The number of pets in China could rise to 570 million by 2029

Xin-Yao Ng
clock 24 February 2026 • 4 min read
Julius Baer International enters MPS market

Julius Baer International enters MPS market

Gareth Johnson appointed as head of MPS

Isabel Baxter
clock 24 February 2026 • 2 min read