HEAD-TO-HEAD: Fidelity versus Templeton

123456

Manager review

Morningstar’s conviction in the Fidelity fund’s lead manager Eric Wong’s investment acumen and growing confidence in the two comanagers merit a People Pillar upgrade to above average from average.

Hong Kong-based Wong has comanaged this strategy since November 2012 before he took the helm in January 2019 following predecessor Steve Ellis’ appointment to global fixed income CIO. Wong joined Fidelity in 2012 and has 19 years of investment experience, 12 of which focused on managing emerging markets debt strategies.

“Wong is an astute and passionate investor, amassing strong track records across his emerging-markets debt and Asian bond strategies,” said Ge.

Wong is joined by two Fidelity veterans: London-based Paul Greer and Marton Huebler, who were added as comanagers in October 2018 and July 2019, respectively. The pair have a short track record as money managers but average 18 years of investment experience and have worked together with Wong since 2012, according to Ge.

The trio is supported by a 31-member global credit research that includes four dedicated emerging- markets-debt sovereign analysts that average 13 years of investment experience.

There has been an uptick in turnover within the Asian credit research team, with three analyst departures between 2020 and year-to- date June 2021, and the team is looking to backfill these roles.

“Still, this team remains one of the larger and better resourced among regional peers,” said Ge.

The experience of lead manager Michael Hasenstab of the Templeton fund, who makes the final calls for the firm’s global macro suite of funds, comanager Calvin Ho, and the core analyst squad is extensive.

However, the recent retirement of the team’s head trader and shifts in the workload and structure of the quantitative and construction teams argue for a downgrade to Above Average from High for the strategy’s People rating, according to Ge.

Hasenstab began his career at the firm in 1995 as an emerging-markets sovereign credit analyst, then left to get a doctorate in economics from Australian National University. He rejoined the firm in 2001 as a manager on this strategy and has since built out the supporting team. That includes longtime analyst and co-head of research, Calvin Ho, who became comanager in late 2018 when Sonal Desai stepped down to take over as CIO of the firm’s U.S. fixed income group.

The duo has the support of five seasoned economists who have “solid resumes for the task at hand”, said Ge.

That group has been relatively stable (two analysts left within the past five years and both were replaced). However, the recent retirement of longtime head trader Michael Messmer and a stronger focus on ESG analysis in the past few years has spurred some shifts in the workload for the quantitative and construction team, to which trading now reports.

Five traders remain, and the team recently added an additional programmer to the quantitative team, which also manages the ESG process, and a political risk-focused associate to the core group of economists.

123456