Posted inHead To Head

HEAD-TO-HEAD: Pimco vs Robeco

FSA compares the Pimco GIS Global High Yield Bond Fund and the Robeco High Yield Bond Fund.
by Fund Selector Asia
Manager review

123456

“The universe is pretty broad for high yield. There are typically more than 1,000 issuers in a global high yield benchmark, so it requires a lot of [investment team] resources,” Faassen said.

Pimco’s fund has been run by two managers: Andrew Jessop since 2010 and Hozef Arif starting July 2016. Jessop joined Pimco in November 2009 and was previously at Goldman Sachs, where he managed a high yield bond fund from 1997 to 2009.

The firm has ten high yield bond portfolio managers, led by Jessop, and around 50 credit analysts who provide support.

Robeco has three managers dedicated to high yield. Sander Bus, has been involved with the fund since its launch in 1998. He was named the manager in 2001. Another co-manager, Roeland Moraal, joined in 2003. A third co-manager who is relatively junior was recently hired.

There are about 20 people on the corporate bond analyst team.

“Robeco has a smaller resource than Pimco, which is supported by about 50 credit analysts. That is quite exceptional.”

Still, Faassen believes Robeco utilises its resources well. For listed small caps, they apply a quantitative approach to rank the bonds based on financial factors, momentum and valuation, he said.

He also noted the Robeco managers invest in their own fund, which makes for better alignment of managers’ interests with those of investors.

123456

Related Stories

FSA SPY

The FSA Spy market buzz – 22 November 2024

Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes and much more.

Part of the Mark Allen Group.