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

PA360: 'Diversified approach has room for both active and passive' - David Coombs

PA360: 'Diversified approach has room for both active and passive' - David Coombs

‘Volatility is your friend if you are a long-term investor’

Jenna Brown
clock 01 May 2025 • 2 min read
PA360: FOMO can 'significantly' alter investors' risk appetite

PA360: FOMO can 'significantly' alter investors' risk appetite

Albemarle Street Partners’ Charlie Parker on the social element of investing

Isabel Baxter
clock 01 May 2025 • 1 min read
PA360: Investors must understand importance of 'proper diversification'

PA360: Investors must understand importance of 'proper diversification'

‘Investors don’t have to choose a single door’

Sahar Nazir
clock 01 May 2025 • 1 min read