DSP BlackRock Strategic BondDSP BlackRock Strategic Bond Fund is the quintessential ‘shut and forget, all weather debt fund’. Launched by DSP BlackRock (erstwhile DSP Merrill Lynch) in the year 2007, the fund has witnessed impressive growth over the past few years.
The fund follows a dual strategy, wherein the portfolio could benefit in one of two ways: reduction in interest rates, or an improvement in the overall credit cycle. The portfolio is presently positioned in such a way that it could take advantage of the improving credit cycle (the so called ‘spread compression’ story) and remain invested in duration through government securities. The fund maintains a rather controlled approach to dynamic portfolio management, preferring to avoid taking high risk bets.
The funds mandate is flexible in nature; permitting the portfolio manager to invest across the duration spectrum as well as in debt instruments that have a high probability of upgrades or spread compression. Through active portfolio management, the fund manages its portfolio duration based on various fundamental and technical factors.
The dynamic nature of the fund enables the investor to participate through interest rate and credit cycles.
RISK CONTROL MEASURES* Robust team comprising credit team, trading team and portfolio managers
* Fund management team works closely with an independent Risk & Quantitative Analysis (RQA) team.
* This structure provides for robust decision making across credits and rates
Ideally Suited For… Institutional clients as well as individuals who are risk averse, and need to deploy lump sums for a medium to long term time horizon of at least 3 years
Why Invest Here in 2017? The near-term direction of interest rates remains uncertain, and yields have already fallen heavily in recent times. In such circumstances, investors should consider actively managed debt funds that have tight risk control measures in place. DSP BlackRock Strategic Bond Fund makes for an ideal investment for debt fund aficionados in 2017.
