Bestinvest says
Benefiting from one of the most respected bond teams in the peer group with a proven track record across market cycles. The fund is managed with a view to delivering out performance relative to the peer group, consequently the broader performance characteristics of the fund are unlikely to deviate substantially from those of the broader asset class.
The investment approach is primarily ‘top-down’but the manager also uses bottom up strategies for stock selection, with the ultimate aim of maximising total returns within specific risk controls. The fund manager’s views of the likely direction of macro economic factors such as economic growth, inflation and interest rates are reflected in the portfolio through the active management of, for example, yield curve positioning and duration. Duration will usually be managed to with +/1 year of the peer group. Macroeconomic views also influence management decisions on the portfolio’s sector exposures and individual stock credit ratings. Relative to the new M&G Strategic Bond, yields levels will generally be more stable.