The US dollar is reaching its peak strength in more than a decade as its benefits from unattractive global economy headlines surrounding the Greek debt crisis and slowing growth in China.
The Federal Reserve’s imminent interest rise and a positive outlook on the US economy will likely keep the dollar’s value up. So which fund managers have fared well on the back of the greenback’s luck?
From a field of 87 managers running US dollar-denominated funds, with the average manager returning of 5.32%, Citywire Americas has uncovered the top three managers over the last three years ending in June in this sector.
3. Steven Lear, JP Morgan Asset Management
Three-year return: 14.5%
Fund: JPM US bond fund
Citywire AA-rated JP Morgan manager Steven Lear sits in third after achieving a 14.5% return over three years on his US bond, almost ten percentage points higher than his Barclays US Aggregate Bond index. Lear has been managing the $78.3 million bond fund since July 2010.
Lear’s top holdings include mortgage loan company Fannie Mae and US Treasury notes.
2. Dan Fuss, Matthew Eagan, & Elaine Stokes, Loomis Sayles
Three-year return: 22.2%
Second best goes to the Loomis Sayles team of three lead by industry veteran Dan Fuss. Citywire AA-rated Fuss has managed the $22.5 billion Multisector Income fund from its inception in 1991 and since 2007 has worked with co-managers Matthew Eagan and Elaine Stokes.
Two years ago, the group also launched the Ucits-compliant version, the Loomis Sayles Strategic Income fund, which now has assets of $17.6 billion. The fund holds about 10% in US Treasury notes along with blue chip corporates and 27% exposure to high yield credit.
1. Anthony Smouha, GAM
Three-year return: 48.8%
Fund: GAM Star Credit Oportunities (USD)
Citywire AAA-rated manager Anthony Smouha holds the top spot with a three-year performance of 48.81%, well above the average of 5.32%.
He’s been managing the $1.1 billion fund since July 2011. It holds paper from around 270 issuers, 36.4% of which is BB-rated, and 16 equity holdings. The funds’ top holdings as of 6 July 2015 included Lloyds Bank, Aberdeen and BNP Paribas.