Nine strategic bond funds for all situations
By Kristen McGachey, 23 May 16
The ‘go anywhere’ approach of strategic bond funds has been a big hit with investors in recent years and big calls across the fixed-income spectrum are now having a huge influence on returns.
Funds to watch - newcomers
- A ‘go-anywhere’ fund with a global mandate across the rating spectrum, Muzinich Global Tactical Credit Fund, is managed with an absolute return mindset and targets dollar cash plus 5% as a benchmark. Muzinich was established in New York but now has resources in London and key cities across Europe. Michael McEachern (pictured) takes the lead on the fund sighting flexibility as the key to delivering steady returns across the credit cycle.
- Fraser Lundie is lead manager on Hermes Multi Strategy Credit Fund that was launched less than two years ago and has already grown to nearly £500m in size. This fund looks to exploit both high-yield and investment-grade opportunities in the US, Europe and emerging markets. There is also a firm focus on the downside risk and they look to produce a fund with expected volatility less than high-yield investing.
- Western Asset Management is an affiliate of Legg Mason and this fund offers access to chief investment officer Ken Leech with more than 30 years’ experience. Promoted as a high-conviction, unconstrained mandate Legg Mason Western Asset Macro Opportunities Bond Fund seeks to be different from the rest in class. Exploiting the vast resources, the fund manager looks to construct a core long-term portfolio together with medium-term tactical positions and short-term trading opportunities.
Tags: Bonds
