Strategic Bonds  

Guide to strategic bonds

  • Learn what a strategic bond fund is.
  • Grasp how it might fit into a portfolio of investments.
  • Understand the differences between strategic bond funds and the alternatives.
CPD
Approx.60min
Guide to strategic bonds

Introduction

In an era of low interest rates, geopolitical uncertainty and predictions of rising inflation, the pressure on asset managers and advisers to provide a reliable and sustainable return cannot be underestimated.

Bonds are, or have been seen as a safer option, a way of bagging an almost all but guaranteed return. 

Fund managers have responded to investors ever hungry for the security of bond investing by offering them access to funds which include diversified portfolios of bonds.

These strategic bonds have grown hugely in popularity, and the Strategic Bond sector was the Investment Association's most popular sector in November 2016. A £50m net inflow made it the best-selling fixed income sector for the first time in more than a year.

But strategic bonds are themselves diverse offerings with different approaches and one size most certainly does not fit all. 

This guide will aim to provide an informative look at strategic bonds including:

What makes a bond fund 'strategic'.

Why is there such a difference between various strategic bonds in the IA sector.

The role they can or should play in an investor's portfolio.

Alternatives to a strategic bond fund - and the pros and cons of these.

samantha.downes@ft.com

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Which of these is not one of the three core areas of fixed income, according to Mr McMahon?

  2. Using a strategic bond fund allows investors to hedge themselves against what, says Mr Veysey?

  3. According to Mr Dash, what has been a general trend among strategic bond funds over the last few years?

  4. Investors in mainstream strategic bond funds need to be aware such funds are likely to what, says Mr McMahon?

  5. Jordan Sriharan advises investors be aware of what types of funds?

  6. Non-core holdings should make up what percentage of a strategic bond fund?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Learn what a strategic bond fund is.
  • Grasp how it might fit into a portfolio of investments.
  • Understand the differences between strategic bond funds and the alternatives.

I completed this CPD in

To bank your CPD please complete the form below.

Were the stated learning objectives met?

Why weren't they met?

What did you learn from undertaking this CPD exercise?

Why did you undertake this piece of learning?

Any comments about this article or FTAdviser's CPD in general?

Banked!

Congratulations, you have successfully completed and banked this piece of CPD

Already Banked!

You have already banked for this article.

To bank your CPD you must sign in or

Register

One or more questions have been incorrectly answered,
 please review your answers and try again.

Please complete all the above text fields to bank your CPD.

More Investments CPDSee my completed CPDSee all CPD