When looking for ideas to fill the portfolio, the team looks at stocks through a yield lens, but with a total-return mindset. This means the portfolio will target a yield of around 3 per cent to 5 per cent, though this can vary depending on market conditions.
The fund has returned 36 per cent in the past five years, almost double the average returns of its peers in the IA Sterling Strategic Bond sector. The fund has an ongoing charge of 0.7 per cent.
A sector as vast as the strategic bond one needs a manager who has the rare ability to accurately read the economic environment, as well as pick individual investments. Hodges has repeatedly shown he is capable of doing both through this flexible mandate, making it an excellent option for all market conditions.
Darius McDermott is managing director of FundCalibre
