HEAD-TO-HEAD: Blackrock vs Legg Mason

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The Blackrock fund is managed by Neeraj Seth, who leads the Asian fixed-income team and is head of Asian credit. He has been managing the fund since 2012. Although his co-manager Joel Kim left his role in 2016, Ng doesn’t consider it a detriment for the fund. Seth has always been focused on credit, which is the core focus of the fund and the main strength of the team, according to Ng.

Credit and currency, formerly Kim’s domain, are now also under Seth’s management. “With the rates and currency exposure normally ranging from 5% to 10%, we don’t think the departure of Joel Kim will have a big impact on the fund,” Ng said.

The Legg Mason fund is managed by a team of three portfolio managers, led by Desmond Soon, head of Asia ex-Japan fixed income. The other members are Chia-Liang Lian, head of emerging markets debt and Swee-Ching Lim. Soon is supported by a team of five analysts and the broader fixed income resources of the firm.

While it’s is too early to judge Soon’s tenure – he assumed his role in April 2014 – the fund has underperformed its benchmark during this time, while doing well relative to its peers, according to a recent Morningstar fund report.

Ng said the Blackrock fixed income team was probably one of the best in the region. The focus on credit fundamentals is the team’s main strength. “If you look at the [fund return] attribution overall, most of the positive contribution comes from credit selection,” he added.

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