Top 5 Strategic Bond Funds

Bond investing in times of falling prices requires a diversified portfolio. These five strategic bond funds are highly rated by analysts and make the most of the market

Emma Wall 24 July, 2014 | 12:03AM

This article is part of Morningstar's Guide to Investing for Income

After a decade long rally, the bond game is over. Investors now face the challenge of finding opportunities in a market where bond prices are falling. The good news is that yields are rising – so with a bit of skill those looking for income or total return can navigate the run down.

Strategic bond funds have a wide remit. Fund managers are free to invest across the sectors, mixing duration, yield – and risk. This blended approach is the most nimble and when executed correctly can be the most effective in the current climate. We used Morningstar Direct to screen the highest yielding strategic bond funds which were also highly rated by Morningstar analysts, the top five are listed below. Three of the funds are managed by Henderson, who has a particularly strong team in this space following acquisitions of two smaller fund managers.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Emma Wall  is former Senior International Editor for Morningstar

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