The FSA Spy market buzz – 22 November 2024
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HEAD-TO-HEAD: Blackrock vs Bluebay
FSA compares two euro corporate bond funds: the Blackrock GF Euro Corporate Bond Fund and the Bluebay Investment Grade Bond Fund.
Data: Morningstar
Over the past three years, both funds have outperformed against the category average. However, the Blackrock fund delivered a more consistent outperformance, beating the benchmark every year since Tom Mondelaers became the manager, according to Dash.
The Bluebay fund is more volatile than the Blackrock fund and its peer group, he noted.
For both funds, subordinated or covered bonds issued by financial companies have been key drivers of returns in 2017. Bluebay also gained through its positioning in hybrids such as convertible bonds.
Bluebay allocates more assets to bonds with lower credit ratings. Bonds rated BBB take up 56% of the portfolio, which is higher than Blackrock’s 39% and the category average of 52.2%.
Three-year Sharpe Ratio
| Blackrock | 1.11 |
| Bluebay | 0.7 |
| Category | 0.71 |
Source: Morningstar. Trailing three years.
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