The world may have been holding its breath for the Fed announcement on Thursday, but with news it has decided to hold off hiking interest rates a number of investors will be breathing a sigh of relief.
For many it is time to plan for the next December meeting as a rate hike this year is still on the cards. In anticipation of the rise in volatility this will create Citywire Americas reveals the global bond managers that best rode this turbulence last time a big Fed announcement moved the market - the 'Taper Tantrum' of May 2013.
3. Daniel James – Aviva Investors
Total returns May 2013 – August 2015: 11.49%
Our top three ranking kicks off with Citywire A-rated Daniel James, the group’s CIO of fixed income in London and global head of rates.
His Aviva Investors Global Fixed Income Hedged is a UK-domiciled Ucits fund which James has been running since its inception in 2010.
Since the ‘Taper Tantrum’ in mid- 2013, James has outperformed his Barclays Global Aggregate Float Adjusted benchmark, which has risen 10.07% by the end of August this year.
2. Paul Causer/Paul Read - Invesco
Total returns May 2013 – August 2015: 20.14%
In second place is the Citywire AA-rated duo of Causer and Read of Invesco. The pair run a number of Luxembourg-domiciled funds, including the Invesco Global Total Return Bond fund, but appear in this ranking for the performance of their UK domiciled fund Invesco Perpetual Global Financial Cap.
Since March 2014 Julien Eberhardt has been co-managing the fund alongside them, with the trio favoring the banking sector with a 61% allocation to this theme. The fund also has a strong focus on high yield paper, with BB-rated bonds accounting for 34% of its overall allocation.
1. Bruno Crastes – H20 AM
Fund: H2O Multibonds
Total returns May 2013 – August 2015: 35.94%
Topping our global bond ranking is former Amundi head of fixed income and boutique founder Bruno Crastes. The French fund manager currently boasts a Citywire AAA rating and his France-domiciled Ucits Multibonds fund invests in sovereign debt, investment grade credit and high yield bonds as well as currencies.
Sovereign bonds make up the vast majority of his bond allocation at 93% of his portfolio, followed by asset-backed securities (ABS) at 7.5%.