Unconstrained bond funds – the right strategy to deal with low yields?

04 Mar 2016

Equity markets are elevated, bond yields are at historic lows, growth remains tepid, and the US Federal Reserve has a tightening bias. For investors seeking absolute returns, it is an extremely difficult environment.

One proposed solution to the low rate problem is seen in the increasing popularity of ‘unconstrained’ bond funds as investors search for higher returns with less risk.

In this article, we investigate the different types of risk inherent in fixed income investments and what types of unconstrained bond funds will have the greatest likelihood of delivering on investor expectations. 

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