Are hedged global bond funds the same as strategic bond funds?

coyrls

Strategic Bonds is an IA Sector: https://www.theia.org/industry-data/fund-sectors

coyrls

Sterling Strategic Bond

Funds which invest at least 80% of their assets in Sterling denominated (or hedged back to Sterling) fixed interest securities. This excludes convertibles, preference shares and permanent interest bearing shares (PIBs). At any point in time the asset allocation of these funds could theoretically place the fund in one of the other Fixed Interest sectors. The funds will remain in this sector on these occasions since it is the Manager's stated intention to retain the right to invest across the Sterling fixed interest credit risk spectrum.

Notes:

1. Across all fixed income sectors there is no prescription within the non-core parameters. Firms are reminded that, whilst the sectors provide freedom in respect of investment in the non-core element of the definitions, the investment strategy adopted must be transparent to the end customer, appropriate to deliver on the fund objective and take account of the firm's TCF (Treating Customers Fairly) obligations.
2. Convertibles, preference shares and permanent interest bearing shares (PIBs) are excluded from core holdings in the fixed income sector classifications.
3. Where ratings of a bond differ between the rating agencies, an average credit rating should be used.
4. Derivative usage should be within the spirit of the sector restrictions and not lead to the economic exposure of the fund being outside the set limits of its sector. The Investment Association does not wish to inhibit funds from using their full UCITS powers, whilst recognizing the limitations on independent monitoring at the present time. Firms are asked to provide certification of the economic exposure of their funds to help the monitoring company interpret the purpose of a derivative as far as possible.
5. In the fixed income sectors, a security with 0-3 months to maturity will be treated as a non-core holding. Securities maturing within 3-12 months will be treated as bonds.
6. Investment in all types of Asset Backed Securities (ABS) is allowed in the core holdings of £ Corporate Bond, £ Strategic Bond, £ High Yield, Global Bonds and Global Emerging Markets Bond sectors. It is the responsibility of the providers to specify, monitor and convey the risk characteristics of an individual fund rather than the Investment Association or its Sectors Committee. Funds which invest solely in specific types of investment securities for examples convertibles or ABS are classified to the Investment Association Specialist sector.
7. The “spirit” may be considered as being whether a fund’s investments or strategy tends towards the achievement of the overall sector scheme objective of allowing like-for-like comparisons to be made between funds. Managers should note that the user group for sectors should be assumed to be consumers and their advisers. Funds should not rely in making their case on applying a narrow, legalistic or unusual interpretation to what are in practice broad definitions.

aroominyork

Strategic bond fund is not a marketing term: it must have at least 80 per cent of funds invested in sterling or sterling-hedged fixed income. Hence my first post of whether they are comparable to a hedged global bond fund which invests across government and corporate fixed income. Let's please not re-post this entire thread.

bowlhead99

aroominyork said:

Strategic bond fund is not a marketing term: it must have at least 80 per cent of funds invested in sterling or sterling-hedged fixed income. Hence my first post of whether they are comparable to a hedged global bond fund which invests across government and corporate fixed income. Let's please not re-post this entire thread.

tcallaghan93 said:
Exactly, it's a marketing term.

aroominyork said:
No, for the love of God, it's a technical description!

Well, what is the IA or ABI series of classifications other than an industry standard way to group together funds from different providers for the purpose of assisting with the marketing of those funds to people who want to know what they are getting into and how performance and costs and volatility compare with their peer group. So I would agree that it's fund marketing terminology, whether it is 'technical' or not.   For example, AAA+  rated and BB rated and 4 year modified duration are technical terms for bond instruments but 'short duration investment-grade credit fund' is a marketing term to help match investors with product providers.

I agree that that callaghan's phase of reopening older and older threads where good quality discussion has already concluded, just to add a few words, seems unusual - but when you are dishing out your opinions at a frenetic pace (more rapidly than the aggregate of the other forum users can post new content) you will soon be left with only older threads on which to work your magic.

respectmymonah

It's too broad to mean anything.
Government bond - means something
Corporate, high yield, junk, investment grade - all mean something, but arguably investment grade is a bit vague. But "strategic"?
And I don't agree that its a technical term because associations of people who have a vested interest in selling investments say it is.

I don't think one of the most prolific posters on here should be criticising other people for activelyengagingwith the forum 😅

coyrls

respectmymonah said:

It's too broad to mean anything.
Government bond - means something
Corporate, high yield, junk, investment grade - all mean something, but arguably investment grade is a bit vague. But "strategic"?
And I don't agree that its a technical term because associations of people who have a vested interest in selling investments say it is.

I don't think one of the most prolific posters on here should be criticising other people for activelyengagingwith the forum 😅

Nice one, created another account with a different user name, who would have thought of that?

bowlhead99

respectmymonah said:

And I don't agree that its a technical term because associations of people who have a vested interest in selling investments say it is.

Yes, I have already agreed with you on that. You didn't need to create a new account for yourself just to say it again.

I don't think one of the most prolific posters on here should be criticising other people for activelyengagingwith the forum 😅

It's because I'm so conceited, I can't stand other people coming along with their own opinions on things. 

aroominyork

Is there a full moon tonight?