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

Trump, Modi and US-India trade tensions – who cares?

Trump, Modi and US-India trade tensions – who cares?

A bottom-up approach to finding hidden gems

Gabriel Sacks
clock 02 January 2026 • 4 min read
2026: Year of the racehorse or workhorse?

2026: Year of the racehorse or workhorse?

'Every year brings its challenges, and 2026 will be no exception'

Russell Andrews
clock 02 January 2026 • 4 min read
Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Will continue to be led by current management team

Patrick Brusnahan
clock 23 December 2025 • 2 min read