108. How to make money when everyone else is losing it

Mike Riddell and Kacper Brezniak tell us why they believe most strategic bond funds behave like equities. They talk us through how the fund actually managed to make money during the market falls earlier this year, tell us why they like emerging market debt and emerging market currencies, and explain how negative yields on Japanese bonds can turn positive for sterling investors.
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The positioning of Allianz Strategic Bond fund is driven by the team’s macroeconomic view. Mike believes most strategic bond funds have a high correlation with equities and has designed this fund to be very different. He is not afraid to radically alter the positioning of the portfolio quickly and this flexibility allowed him to delivering spectacular results during the coronavirus crisis.

Read more about Allianz Strategic Bond

What’s covered in this podcast:

• Why the manager thinks most strategic bond funds are like equities [0:33]
• How the manager went about designing this fund [1:42]
• How the fund managed to make money in February and March when everything lost money [4:59]
• How the fund also managed to do well when markets recovered [7:07]
• What changes the managers have made since the summer [10:07]
• Why the managers like emerging market debt [10:40]
• How negative Japanese bond yields can turn positive for sterling investors [13:31]
• Why the fund’s yield moves up and down [14:30]
• Why investors should consider bond funds for diversification, not income [15:30]

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Remember, all investments can fall in value as well as rise, so you could make a loss. Before you make any investment decision, make sure you’re comfortable and fully understand the risks.Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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