Against a challenging backdrop for fixed income assets, the unconstrained nature of a strategic bond mandate looks attractive. Karine Glausner of Morningstar OBSR looks at some top funds.
Demand for fixed income assets has remained strong, fuelled by the search for yield, which has pushed investors into higher risk areas of the market such as high yield bonds and emerging market debt in recent months. Last year was another very strong year for fixed income assets, in particular credit. Corporate bonds achieved stellar returns, with high yield bonds in particular up 18% (based on the IMA £ High Yield sector average) on the back of improving market sentiment caused by a number of factors. These included central banks' actions such as the European Central Bank's long-t...
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