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Funds

Strategic Bond Fund

Generating income in a low yield environment

 

The objective of the Strategic Bond Fund is to provide a total return to investors through an attractive level of monthly income as well as the potential for capital growth.

Investment Approach:

 
Our investment approach employs a high-quality focus of corporate bonds with a tactical overlay to enhance total returns through undervalued sector/issue allocations:

  • We focus on investment grade bonds with an attractive risk/return
  • We take a global outlook with the widest possible opportunity set
  • We adopt an active approach with a tactical overlay to ensure that the fund remains harmonised and is run effectively 

 

Investment Process:

 

Our robust investment process helps guide all investment decisions and provides consistent performance.

1. Macroeconomic view
We begin with a macroeconomic view that feeds down into individual bond selection. Our views help shape our thoughts on longer-term interest rates, currencies and credit. We then support our long-term views with tactical ideas that identify shorter-term opportunities and risks.
 
2. Credit selection
We screen individual bonds using our valuation model, which filters more than 22,000 issues against our own valuation measures. We then conduct our own credit research on each bond, where we look for good cash flow generation, strong liquidity profile and the ability to deleverage their balance sheet. Some of the best opportunities come from a misunderstanding of leverage and perceived risk.
 
3. Risk analysis
Risk is an important part of the investment process. We manage interest rate, credit and currency risks through our diversified portfolio approach.

4. Portfolio construction
We construct diversified portfolios comprising no more than 20% allocated to high-yield bonds and 80% sterling bond exposure. We continuously monitor and measure performance at a fund and individual security level.
 
To find out more about investing in our Strategic Bond Fund contact us

For the most up-to-date Key Investor Information Documents (KIIDs), Prospectus and Supplementary Information please follow this link.

Useful Documents

Strategic Bond Fund Factsheet

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Strategic Bond Fund Brochure

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Strategic Bond Fund Application Form

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Additional Purchase Request Form

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Redemption Request Form

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Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.