Citywire Selector - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

The top EMD hard currency managers of 2015 revealed

1 Comment
The top EMD hard currency managers of 2015 revealed

Emerging market bonds had a volatile 2015 marked by concerns over the slowdown in China, geopolitical tensions in Russia, the Middle East and Latin America.

Persistently low commodity prices also had an effect on the fixed income market, with few bright spots to uncover for those invested in developing world debt.

Against this backdrop, Citywire Selector has taken a closer look at the top-performing managers focused on emerging market hard currency debt over the past 12 months.

There are currently 400 managers operating in the sector with a one-year track record in the Citywire database, with the average of these having lost 1.69% over the year to the end of December 2015

But who emerged on top? Let’s take a closer look at the top five outperformers in this tough sector.

5. Bob Maes, KBC Asset Management

Fund: KBC Bonds Emerging Markets Cap

Total return (December 2014-December 2015): 1.01%

Kicking off this line up is Bob Maes, who has 52 holdings in the KBC Bonds Emerging Markets fund, which he has managed since June 2011. In terms of positioning, the manager’s largest country bet is Turkey at 13.78%. The second largest is Russia at 12.89%. Maes devotes 82.92% of the fund to government bonds and Russian government bonds are also the largest holding at 9.11%.

4. Jennifer Gorgoll, Neuberger Berman

Fund: Neuberger Berman Short Dur EM Debt

Total return (December 2014-December 2015): 1.49%

Jennifer Gorgoll has managed the Neuberger Berman Short Duration Emerging Market Debt fund since its launch in December 2013. Bart van der Made and Nish Popat are the co-managers on the fund but excluded from this analysis due to their roles on other funds in the sector.

China is the top country holding in the fund at 13.29% followed by Brazil at 9.68% and Turkey at 7.73%. Gorgoll has smaller holdings in Russia (7.04%) and Kazakhstan (6.33%). In terms of asset allocation, the managers prefer corporate bonds, which make up just over half of the fund at 50.36%. Quasi sovereign bonds are the next largest allocation at 24.31%.

3. Jürg Bollinger, Falcon Private Bank Ltd

Fund: Falcon Emerging Markets High Yield Bond fund A

Total return (December 2014-December 2015): 2.29%

Citywire + rated Jürg Bollinger has managed the $10.89 million Falcon Emerging Markets High Yield Bond fund since it was launched in January 2014.

He has 20 holdings in the fund and India is the largest country allocation at 28.51%. This is followed by China 9.3% and Indonesia at 9.17%, respectively. In terms of sectors, Bollinger holds 30.34% of the fund in banks and 14.04% in real estate. Cash is the second largest holding at 22.93%.

In his latest commentary, Bollinger said volatility would remain high in 2016, but the majority of the negative impact had been discounted in the market and is not far from reaching the bottom.

2. Claudia Calich, M&G Investments

Fund: M&G Emerging Markets Bond Sterling

Total return (December 2014-December 2015): 4.10%

Winning the silver medal in the category is Claudia Calich, who has 80 holdings in the M&G Emerging Markets Bond fund, which she has managed since December 2013.

The biggest allocation is to government bonds at 49.2% followed by high yield bonds, which make up 25.6%. The largest single allocation is an Indonesian bond, which makes up 3.1% of exposure. Calich favours bonds with 7-10 years maturity, which make up 32.8% of the fund. She holds 5.6% of the fund in cash.

1. Yerlan Syzdykov, Pioneer Investments

Funds: Pioneer Funds Emerging Markets BondPioneer SICAV Emerging Markets Bond

Total return (December 2014-December 2015): 9.83%

Citywire A-rated Yerlan Syzdykov comes top of this category by a comfortable margin. He has 371 holdings in the Pioneer Funds Emerging Markets Bond fund and holds 12.3% of the fund in cash.

In terms of asset allocation, Syzdykov devotes 14.4% of the fund to emerging government bonds, which is underweight against the benchmark allocation of 71.8%. He holds 34.4% in emerging non-financials, which is overweight against the benchmark of 13.7%.

On a country basis, the largest holding is the US at 11.6%, which is followed by China at 8.2%. He also has smaller holdings in Russia (5.9%), Brazil (4.5%) and Turkey (4%).

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Nish Popat
Nish Popat
26/67 in Bonds - Emerging Markets Global Corporates (Performance over 3 years) Average Total Return: 14.42%
Jennifer Gorgoll
Jennifer Gorgoll
23/46 in Bonds - Asia Pacific Hard Currency (Performance over 1 year) Average Total Return: 6.18%
Bob Maes
Bob Maes
13/155 in Bonds - Emerging Markets Global Hard Currency (Performance over 3 years) Average Total Return: 18.62%
Jürg Bollinger
Jürg Bollinger
81/155 in Bonds - Emerging Markets Global Hard Currency (Performance over 3 years) Average Total Return: 11.32%
Claudia Calich
Claudia Calich
27/155 in Bonds - Emerging Markets Global Hard Currency (Performance over 3 years) Average Total Return: 17.51%
Yerlan Syzdykov
Yerlan Syzdykov
12/155 in Bonds - Emerging Markets Global Hard Currency (Performance over 3 years) Average Total Return: 18.77%
Bart van der Made
Bart van der Made
23/155 in Bonds - Emerging Markets Global Hard Currency (Performance over 3 years) Average Total Return: 18.33%
Events
  • Citywire DACH 2016

    Citywire DACH 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Berlin 2016

    Citywire Berlin 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Switzerland 2016

    Citywire Switzerland 2016

  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Global New Ideas 2015

    Citywire Global New Ideas 2015