HEAD-TO-HEAD: Blackrock vs Pimco

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Manager review

Michael Krautzberger, head of Blackrock’s euro fixed income team, has managed the fund since October 2005 and his stewardship is “key to our positive view”, said Dobrescu.

He previously had long tenures managing funds at Deutsche Bank DWS, and brought his experience of managing a large pool of assets to Blackrock, where he works collegiately with a group of 13 investment professionals, including 10 portfolio managers, and is supported by large array of experienced analysts across the company.

“Krautzberger has helped instil a robust investment process and has provided stability for the fund. Both features inspire confidence,” said Dobrescu.

In contrast, the solidity of the Pimco team is less secure.

The Pimco fund’s strategy had been managed by Andrew Balls since 2009, but he stepped away in 2014 to head global fixed income for the group and manage the Pimco global bond fund. He was succeeded by Lorenzo Pagani and Andrew Bosomworth, with the former taking the lead role in 2017.

“However, although Pagani is vastly experienced, he lacks a track record managing a fund with a similar mandate,” said Dobrescu.

He has subsequently taken on additional duties at Pimco, including as co-manager for the firm’s global real return strategy.

“We are closely monitoring his workload, although we are reassured by the extensive group of portfolio managers and analysts that support him,” Dobrescu added.

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