Bestinvest says
This fund benefits 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 outperformance relative to the peer group. The fund will tend to have a high correlation to the performance of gilts.
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 within +/1 year of the benchmark. Macro economic views also influence management decisions on the portfolio’s sector exposures and individual stock credit ratings. Relative to the M&G Strategic Corporate Bond fund, yields levels will generally be more stable.