Strategic bonds

Strategic bond funds are the most flexible type of bond fund. They can invest in any type of bond – government, investment grade, high yield and emerging market, as well as other fixed interest investments. The manager will be able to increase or decrease exposure to certain types of bond, depending on the economic and investment environment, and their view as to which is currently a more attractive investment. These funds also tend to have more investment tools at their disposal, which can, for example, help protect the fund from rising interest rates.