As part of its fund selector analysis feature on emerging market debt, Morningstar has identified the funds to watch based on their assets under management.
The $4bn (£3.18bn, €3.7bn) Templeton Emerging Markets Bond Fund is managed by managers Michael Hasenstab and Laura Burakreis, who implement a high-conviction approach. The managers are known for sometimes building quite large stakes in unloved sovereign credits and being highly active in managing duration and currency exposure. They are backed by a well-resourced team of economist and country analysts.
At $7bn in assets under management, the Pictet Global Emerging Debt Fund is one of the largest in the category. The strategy is managed by Simon Lue-Fong and has been head of GEM bonds at Pictet since 2005. The fund is managed with an emphasis on limiting downside risk by establishing profit-loss thresholds for each active position taken. The fund invests mainly in hard currency debt, but may hold up to 30% in local currency bonds.
Far from its $8bn peak in 2013, the Julius Baer Local Emerging Bond Fund’s assets under management are still significant at near $5bn. Lead manager Paul McNamara took over the strategy at its inception in 2000. His two co-managers, Denise Prime and Caroline Gorman, have been with the strategy for six and 10 years, respectively. The local debt strategy in place here is benchmark-aware but quite flexible.
