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

Partner Insight: UK small-cap opportunities are 'The best for more than 30 years', Downing's Judith MacKenzie says

Partner Insight: UK small-cap opportunities are 'The best for more than 30 years', Downing's Judith MacKenzie says

Growing interest in IPOs and a surge in pension fund interest put UK small-caps on course for strong growth.

Judith Mackenzie, Partner and Head of Downing Fund Managers
clock 28 November 2025 • 4 min read
'It's been frantic – in a good way': Orbis' Matt Spencer on maintaining momentum

'It's been frantic – in a good way': Orbis' Matt Spencer on maintaining momentum

Advisers in the UK are ‘exceptionally high quality’

Jenna Brown
clock 25 November 2025 • 8 min read
Why 'bubble talk' doesn't always burst markets

Why 'bubble talk' doesn't always burst markets

What’s really driving recent returns?

Eleanor Ingilby
clock 20 November 2025 • 4 min read