Legal & General Strategic Bond Fund
Celebrating £1bn AUM as at 30 May 2025
L&G Strategic Bond Fund
The Legal & General Strategic Bond Fund seeks to outperform fixed income markets across multiple credit and interest rate cycles. We aim to do this by managing interest rate and asset class exposure across a diversified investment universe of both government and corporate debt. Click here to meet the team.
Active management of interest rate exposure
Diversified exposure to corporate debt
Team-based approach for long-term outcomes
Watch ‘Drama and dynamism: spotlight on the L&G Strategic Bond Fund’
Mat Rees and Amélie Chowna reveal how conviction, teamwork, and paying close attention to market cues helped them to withstand extreme market volatility for their £1 billion portfolio.
Watch the full series
Photo credit: Adithio Noviello of Citywire
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In this article, we explore the merits of a strategic bond fund to help navigate uncertain market dynamics, and how diversification, duration and risk management have been key in shaping the L&G Strategic Bond Fund's returns over the years.
Team-based approach for long-term outcomes
We believe in delivering long-term outcomes for clients through a collaborative and team-based approach. The strategy utilises the full range of L&G’s active fixed income capabilities, including teams of investment grade credit, emerging markets and high yield research analysts, investment specialists and credit strategists.
Colin Reedie
Head of Active Strategies
Matthew Rees
Lead Portfolio Manager
Head of Global Unconstrained Fixed Income
+ 6 team members
Developed Market Investment Grade Credit
Government Bonds
Risk Management
Uday Patnaik
Head of Asia Fixed Income and Global Emerging Markets Debt
+ 7 team members
Emerging Market Debt
John Ryan
Head of Global High Yield
+12 team members
Global High Yield
In practice
By bringing together specialists from across L&G, we can distil their expertise into the best ideas for our portfolios, creating an adaptable, repeatable and forward-looking investment process.
Awards should not be considered a recommendation. Past performance is not a guide to the future.
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FAQ
A strategic bond fund is an actively managed fund that can invest across a broader range of fixed income assets compared to traditional bond funds. This is because it adopts an ‘unconstrained’ approach, which means the fund manager has freedom to invest across all categories and geographies of the investment type while being benchmark agnostic.
1. Global diversification – The global economy is shifting and investors' appetite for certain asset classes and geographies is evolving. An unconstrained investment approach that focuses on diversification can help investors adapt to the changing landscape.
2. Income is back in fixed income – Interest rates remain elevated in a bid to fight inflationary pressure. Fixed income is now offering a more attractive income to investors.
3. Broad flexibility: opportunity amid uncertainty – The future is becoming even harder to predict and as a result market volatility is more common. Sudden market price movements provide opportunities for nimble, active managers.
1. Truly unconstrained approach designed to capture upside from a global opportunity set.
2. Highly flexible duration management aiming to balance risk between credit and interest rates.
3. Established investment process that has led to a robust long-term performance history versus other asset classes in up and down markets.
1. Diversified sources of alpha:
- Unconstrained and adaptable investment approach
- Global allocation across geographies (including emerging markets), sector and issuer
2. Nimble: Active overlay of rates exposure
- Highly flexible duration management
- Primarily used as a hedge for credit
- Further alpha generation
3. Aims for smoother return outcomes
- Adaptable strategy
- Successfully navigated different market environments
Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested.
Whilst L&G has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.
The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing in this fund is available in the prospectus here:
It should be noted that diversification is no guarantee against a loss in a declining market.