Funds to watch – 3-yr performance
The Pimco Global Bond fund has been run by Andrew Balls, Lorenzo Pagani and Sachin Gupta since 2014, relative to a USD-hedged version of the Barclays Global Aggregate benchmark. Its core positions are in the largest developed market sovereign debt issuers (Japan, eurozone, and the US) but the process allows for latitude in credit, securitised issues and emerging market debt investments. It is rated Bronze by Morningstar.
Baillie Gifford Worldwide Global Credit was launched in 2012 and has since been managed by Stephen Rodger, Robert Baltzer and Nell Franklin, who together average more than 15 years’ experience. The high-conviction approach results in a concentrated portfolio of 60-80 issuers based strictly on fundamental analysis. The fund is designed to add value over the long term relative to the Barclays Global Credit Index benchmark.
The Payden Global Bond fund, launched in 1997, is managed by the trio of Kristin Ceva, Nigel Jenkins and Natalie Trevithick. The fund is actively managed against the Citigroup World Government Bond Index and relies on duration, country, credit and currency views as key return drivers. Risk management is integral to the process as the firm places emphasis on maintaining consistency with the mandate’s investment objective.
Funds to watch – newcomers
The Robeco Global Credits fund, launched in 2014, is run by Victor Verberk, supported by investment grade specialist Peter Kwaak and emerging markets credit specialist Reinout Schapers. The fund relies on a 17-strong team of analysts tasked with conducting fundamental research. The manager also adds value from outside the investment grade universe. The fund is rated Bronze by Morningstar.
T Rowe Price Global Investment Grade Corporate Bond has been managed since its inception by Steve Boothe. It was launched in 2015 and seeks to maximise returns and outperform the Barclays Global Aggregate Corporate Bond Index by investing in global corporate bonds. The fund is a collection of best ideas generated by the global network of credit analysts the manager combines in a portfolio of 75-150 holdings.
The Henderson Horizon Global Corporate Bond fund, launched in 2014, is managed by James Briggs. It seeks to generate a total return in excess of its benchmark, the Barclays Global Aggregate Corporate Bond Index. The fund consists of a portfolio primarily made up of investment grade corporate bonds. However, there is a moderate degree of latitude to invest in non-investment grade issues.
Funds to watch – assets under management
Pimco Global Investment Grade Credit has been managed by Mark R Kiesel since 2003. The fund aims to maximise total returns while focusing mainly on investment grade corporate bonds. The investment process is a blend of top-down positioning determined by Pimco’s investment committee and bottom-up ideas generated by a team of 50-plus credit specialists. The fund is rated Bronze by Morningstar.
With over $20bn in assets, Templeton Global Bond is one of the behemoths in this sector. Co-managed by Michael Hasenstab and Sonal Desai, the fund aims to maximise total returns by investing primarily in sovereign issuers from developed and emerging countries. A willingness to take off-benchmark positions means the performance may deviate from its peers and benchmark. The fund is rated Silver by Morningstar.
The Jupiter Dynamic Bond fund was launched in 2012 as the Ucits version of the UK-domiciled Jupiter Strategic Bond, introduced in mid-2008. Ariel Bezalel has managed both funds since their inception. The fund has the flexibility to invest in corporate and sovereign issuers globally, straddling the credit ratings spectrum, which has led to the strong risk-adjusted returns since launch. It is rated Bronze by Morningstar.
