Previously run by head of fixed income Alan Wilde, the £92m UCITS vehicle now has an unconstrained investment remit and is no longer tied to the Composite Index 50% FTSEAS, 50% CWGBI ex UK.
Aided by co-manager Richard Balfour, Dunham – who joined Barings from HSBC as head of global aggregate in May last year – is able to invest across government and sovereign bonds in developed and emerging markets, investment grade and high yield corporate bonds, currencies and derivatives. In its old guise, the fund was limited to government debt.
The objective of the Baring Strategic Bond Fund is to achieve long-term capital growth together with income.
“The low interest rate environment and wider market volatility is driving significant demand from investors for more flexible fixed income products that are able to generate strong and consistent returns,” said Rod Aldridge, head of UK wholesale.
“We believe that combining assets from around the globe can increase returns and reduce risk, while actively allocating between sectors can also enhance performance.”
