With UK government bond (gilt) yields coming down and the March 2018 gilt falling to a negative yield, income-seeking investors need to look up the risk curve if they want better returns. If you have the appropriate risk appetite, a good option could be a strategic bond fund such as IC Top 100 Fund MI TwentyFour AM Dynamic Bond Fund (GB00B5VRV677), which has the ability to invest flexibly so can adjust to difficult macroeconomic conditions.
- Invests across fixed-income spectrum
- Good performance
- Attractive yield
- Experienced managers
- European high-yield market could turn
This fund's highly flexible approach means it can invest across a wide range of fixed-income assets, including investment-grade bonds, high-yield bonds, government bonds and asset-backed securities. Its use of hedging and derivatives, including credit and interest rate derivatives, also means it is well-placed to perform strongly throughout the credit cycle, in both rising and falling interest rate environments.