Threadneedle Global Opportunities Bond Fund

investing in fixed interest assets has always been seen as lower risk however fixed interest assets are facing a challenging environment

Fixed Interest (Bond) Investments are appealing to investors primarily because they can provide downside protection and they are less volatile than equities.

In our opinion, the halcyon days of good returns from bonds is coming to an end, although there are surprises as was seen in 2014 when gilts were one of the stand out sectors. The challenge for investors is how to invest in an environment where interest rates are low, where in some areas they continue to fall and in some places where interest rates are about to rise.

In our latest fund manager review we meet Martin Harvey who is deputy manager on the Threadneedle Global Opportunities Bond Fund. His argument is compelling, that is to respond to this market you need a strategy that can go anywhere within the fixed interest environment to deliver returns. But he added there needs to be an acceptance of taking more risk within the fixed interest environment, this means potentially these funds could be more volatile and returns lower.

Launched in 2011 the Threadneedle Global Opportunities Fund aims to deliver a positive return of 4.5% (gross of fees) irrespective of market conditions.

Fund Facts Morningstar

Notes

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