IA Sterling Strategic Bond
The core option : Janus Henderson Strategic Bond Sánchez picks out the £ 2.9bn
Janus Henderson Strategic Bond fund , managed by Jenna Barnard and John Pattullo , as a core option in Square Mile ’ s duration-risk category . “ Last year the fund didn ’ t have a great time because the managers were overweight in interest rate risk , but we expect it to do better going forward as they are defensive in credit risk ,” he says . “ They have proved adept at managing macroeconomic , market and securityspecific risks over a range of market conditions . The fund should be of interest to investors seeking income and capital growth .” It is currently yielding 3.7 %.
The ISA choice : Allianz Strategic Bond When investing in bonds , Gabriella Macari , chartered wealth manager at Tillit , says investors should consider the full breadth of the asset class . For this reason , she says Tillit ’ s ISA pick in the sector is Mike Riddell ’ s £ 2.1bn
Allianz Strategic Bond fund . “ It aims to be as uncorrelated to equities as it possibly can over a three-year period and has the flexibility for its managers to roam the global bond markets for the best opportunities ,” she says . “ The fund currently has a large exposure to higherquality government bonds , such as US Treasuries .” The Allianz Strategic Bond fund is currently yielding 2.1 %.
The active option : Aegon Strategic Bond Sánchez likes the active approach adopted by Alexander Pelteshki and Colin Finlayson in the £ 429m
Aegon Strategic Bond fund . “ The credit expertise from Pelteshki and the macroeconomic expertise from Finlayson are complementary to each other ,” he says . “ The managers are more punchy than many of their peers in that they take more credit risk . Again , this fund struggled last year because of the managers ’ higher credit-risk exposure , but in the last four months it recovered strongly .” The fund is yielding 4.5 %. It is in the fourth quartile over one year , but is in the first quartile over five .
Issue 93 - March 2023 / 57 /