A low interest rate environment and escalating volatility in
the equity markets has increased investor appetite for
One of the most popular sub sectors are strategic bonds funds
- an area of the industry which has had some of the biggest
The largest fund in the space is M&G Optimal Income Fund,
according to the Absolute UCITS database. It is run by Richard
Woolnough and has more than $10 billion assets under
Strategic bonds, depending on the fund, have an unconstrained
approach to investing in the global fixed income market.
One of the newer portfolios is the Newscape Strategic Bond
Fund and its lead manager Charlie Kerr (pictured) says
that the reason for this is because investors are focusing
these days more on capital preservation rather than return on
He says: "Over the past few years, strategic bond funds have
seen the biggest inflows amongst the...