Jupiter Strategic Bond Fund

We’ve all heard about ‘go anywhere’ fund managers. These are the ones who have the ability to buy virtually anything. When it comes to shares, this would mean having the ability to buy small companies and large companies, UK companies and overseas companies, and even delving into emerging markets. But these types of funds also exist in the bond markets – funds that can invest across the entire global bond market, in search for attractive opportunities.

Where does a ‘go anywhere’ fund invest?

The global bond market is actually a lot more diverse than the stock markets for shares. For example, not only can you invest in bonds issued by companies, you can also invest in bonds issued by governments. In fact, there are organisations that you can’t buy shares in, but where you can buy bonds. Examples include building societies, charities, and organisations such as housing trusts. And like with shares, it is possible to buy bonds issued in virtually every single country in the world, from Argentina to Zambia.

Strategic Bond Fund

A ‘go anywhere’ bond fund is known as a ‘strategic bond fund’. And the manager has a difficult job. On one hand, the fund manager is looking to maximise returns, by investing in bonds that pay the highest income. But on the other hand, he/she needs to be aware of the risk of default – the risk that the companies being invested in will not pay their bonds back. For example, what offers the best investment opportunity – buying a bond issued by the UK government or buying a bond issued by a UK company? It can be a difficult balance to manage, which is why it’s worth seeking out an experienced fund manager with a capable team.

Jupiter Strategic Bond Fund

If the idea of such a ‘go anywhere’ bond fund appeals to you, then you may wish to consider the Jupiter Strategic Bond Fund. There are a lot of strategic bond funds to choose from, and they all do different things. What we like about the Jupiter Strategic Bond Fund is the manager has no constraints, which means he has full freedom to invest in any part of the bond market and seek out the most attractive investment opportunities. This flexibility also enables the manager to seek shelter in more defensive areas of the market, when the outlook for bonds is more challenging. And behind this process is an experienced team which helps keep the level of risk in check and aims to ensure returns are consistent.

There are other bond funds on the Barclays Funds List, in addition to the Jupiter Strategic Bond Fund. Some of these invest in different parts of the bond market and offer the potential for different yields and total returns. Find out more information on these funds.

Correct at time of publishing.

To diversify your investment, you may like to consider our own Barclays Ready-Made Investments (RMI). The RMI are just one example of a range of diversified funds which allow you to select the level of risk you are most comfortable with. These multi-asset funds invest in passive funds across a range of asset classes and regions, offering a globally diversified one-stop solution for investors. Ready-Made Investments are not the only funds that we offer and they won’t be appropriate for everyone.

Past performance of the fund and its manager are not a reliable indicator of their future performance.

We don’t offer personal investment advice so if you’re unsure you should seek that independently.

Funds are designed for the long term so you should only consider them if you can stay invested for at least five years.

These are our current opinions but the future, as ever, is uncertain and outcomes may differ.

Read the Assessment of Value report [PDF, 683KB] for funds run by Barclays.