A low interest rate environment and escalating volatility in the equity markets has increased investor appetite for bonds.
One of the most popular sub sectors are strategic bonds funds – an area of the industry which has had some of the biggest recent inflows.
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 management.
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