Global high yield: top performing managers revealed
Citywire Global takes a closer look at the managers who posted the strongest five-year returns in one of 2012's most followed sectors.
Markets
by Chris Sloley on Jan 14, 2013 at 07:01
The widespread chase for yield in 2012 saw large amounts of attention paid to high yield bond funds but who are the sector’s top performing managers as we enter 2013?
Taking a look at those with a long-standing track record, there are 43 global high yield bond managers in the Citywire database with a five-year performance history from November 2007 to November 2012.
Over this period, the average global high yield bond manager returned 38.61% in US dollar terms, with 20 of the 43 fund managers posting a better figure. This equates to 46% of managers outperforming the average peer.
Meanwhile, the most commonly used index, the BofA Merrill Lynch Global High Yield TR, rose 59.8% over the same period and only five managers (11%) managed to outperform this benchmark.
So who were the five managers in question and how are their portfolios currently positioned?
Michael Buchanan, Western Asset Management
Fund: Legg Mason WA Global High Yield A Dis D USD
Five-year TR (November 2007-November 2012): 60.17%
The first of the five managers in Citywire’s database to break the 60% total return mark over the past five years is Western Asset Management’s Michael Buchanan, who also runs an Alternative Ucits credit strategy on behalf of parent company Legg Mason Asset Management.
The former Janus Capital man has focused his fund on B-rated securities, which, at the end of November 2012, made up 35% of his fund’s exposure by credit quality. In terms of sector, he has a preference for emerging market corporate bonds, with 10.7% of the fund allocated here.
Michael Hasenstab/Eric Takaha, Franklin Templeton
Fund: Templeton Global High Yield I (acc) EUR
Five-year TR (November 2007-November 2012): 61.54%
Famed bond investor Michael Hasenstab is recognised in this round-up for his performance on the $244 million Templeton Global High Yield fund alongside Eric Takaha. The pair were named co-managers on the Luxembourg-domiciled fund when it was launched in September 2007.
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Look up the funds
- EDM Credit Portfolio Fund
- EDM-Ahorro, FI
- EDM Renta, FI
- Baring High Yield Bond A EUR
- Templeton Global High Yield I (acc) EUR
- Legg Mason WA Global High Yield A Dis D USD
Look up the fund managers
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