SECTOR PROFILE
IA Sterling Strategic Bond
“ In this environment of higher yields , we think fixed income strategies should start providing diversification again ”
Eduardo Sánchez Associate research director at Square Mile
“ With yields at very low levels after quantitative easing and the measures taken by central banks , it all changed as inflation surged . “ In this environment of higher yields , we think fixed income strategies should start providing diversification again and , depending on the bias you want to take , an allocation to strategic bonds can get you access to these yields .” Eoin Walsh , founding partner at TwentyFour , says strategic bond funds are supposed to be just that
– strategic – giving the portfolio managers the flexibility to position themselves for where we are in the credit cycle . “ The degree of flexibility used by fund managers can vary significantly , as can portfolio construction ,” he says . “ For example , some managers may use leverage or hold equities , while others may rely on trading or derivative gains to supplement lower-yielding bonds .” Given these differences in style and portfolio construction , Walsh
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