Strategic bond managers: Our asset allocation moves

FIXED INCOME

As strategic bond funds continue to attract record inflows, Katie Holliday examines the current asset allocation trends across the sector.

In today’s economic environment, it is easy to see why strategic bond funds are so appealing. The sector has proven the most popular IMA sector for eight consecutive months, according to IMA statistics published in May. As government bonds trade at record lows and the volatile nature of markets continue to dissuade investors from taking too much risk, the ability for strategic bond fund managers to take advantage of the dramatic swings between risk-on and risk-off periods is an attractive selling point. Returns from fixed income in general, and the Strategic Bond sector in particular, ha...