Posted inHead To Head

HEAD-TO-HEAD: Axa vs Pimco

FSA compares two global high yield bond products: The Axa World Funds Global High Yield Bond Fund and the Pimco GIS Global High Yield Bond Fund.
by Francis Nikolai Acosta

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Manager review

The Axa fund has been co-managed by James Gledhill and Carl Whitbeck since 2012, according to Dobrescu.

At the time, Gledhill joined the firm as head of European high yield following the departure of Andrew Wilmont. Whitbeck, meanwhile, became head of US high yield following the departures of three senior high yield managers in 2011.

Both managers are supported by five high yield managers and eight analysts on the US high yield side, while one portfolio manager and three credit analysts support them on European high yield, according to Dobrescu.

Turning to the Pimco fund, Dobrescu said that the product has been led by Andrew Jessop since 2009, who was joined by co-manager Hozef Arif in 2016.

Both managers are supported by a sizable team of 60 credit analysts globally, according to Dobrescu.

Although the Axa fund has the smaller team, Dobrescu believes that it is sufficient given that the team only looks at a limited number of securities.

“They highly avoid cyclical sectors like airline or shipping and they try to be smart enough by how they structure their work,” she said.

However, given the fund’s small team, the number of departures in the past four years “does raise a concern.

“We have a positive view of the leaders of the fund, but we are keeping a close eye on the turnover in case it continues, as it may become an issue down the line.”

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