Citywire Global showcases the global convertible bond managers with the strongest turnaround in performance over the past three years.
- Ranking July 31 2010 to January 31 2012: 10/62
- Ranking January 31 2012 to July 31 2013: 5/65
Kicking off our countdown is Peter Reinmuth, who has climbed five places in the global convertible bonds rankings. This is based on his performance with the Schroder ISF Global Conv Bond fund over the past 18 months.
The fund's August factsheet shows IT firms as the biggest sector holding at the moment, accounting for 24.5% of the portfolio. A 3.5% allocation to a bond from chip-maker Intel, which is yielding 3.25% and maturing in 2039, is the single biggest holding in the fund.
Note: Returns given in euro terms, reflecting managers' cumulative performance where they manage more than one fund in the global convertible bonds sector
4. Beat Thoma
- Ranking July 31 2010 to January 31 2012: 17/62
- Ranking January 31 2012 to July 31 2013: 9/65
Sitting in fourth place is Beat Thoma, who co-manages the Schroder ISF Global Conv Bond fund with Reinmuth but also reflects works on BayernInvest's convertible bonds fund.
It is the combined performance across the two strategies which has seen him rise eight places up the rankings in the second analysis period.
The BayernInvest Convertible Bonds Fonds vehicle invests in international convertible bonds, convertible notes as well as in fixed and variable income securities of the global bond market.
- Ranking July 31 2010 to January 31 2012: 18/62
- Ranking January 31 2012 to January 31 2013: 3/65
A manager duo claims third place in our analysis: Jacques Berghmans and Hubert d'Ansembourg. They duo has risen 15 places up the rankings int he past 18 months based on their efforts on the TreeTop Convertible International and TreeTop Scolea SICAV International funds.
The TreeTop Convertible International fund currently has a market tilt towards issuance from the financials sector, which comprise 30% of the portfolio's sector exposure. Consumer discretionary is the second biggest sector at around 17% of the portfolio, and technology is third at just over 15%.
The TreeTop Scolea SICAV International fund is a mirror of the Convertible International fund.
2. Ulrich Sperl and Alain Eckmann
- Ranking July 31 2010 to January 31 2012: 28/62
- Ranking January 31 2012 to July 31 2013: 6/65
Narrowly missing out on top spot are UBS bond managers Ulrich Sperl and Alain Eckmann, who have climbed 22 places in our global convertible bond manager rankings over the past three years.
The UBS (Lux) Bond Sicav - Convert Global fund aims to draw maximum benefit from the risk/return characteristics of the global convertible bond markets.
The latest available factsheet reveals the fund's biggest positions are in biotechnology company Gilead Sciences (1.625%, 2016), financial giant Wells Fargo ($75 perpetual) and electronics maker Siemens (1.65%, 2019). BBB-rated debt is the biggest allocation in the fund, accounting for 34% of the portfolio's holdings.
- Ranking July 31 2010 to January 1 2012: 47/62
- Ranking January 31 2012 to July 31 2013: 2/65
Leading the way with a rise of 45 places up the rankings is Stefan Winkler, who is the most improved global convertible bonds manager over the past three years.
As the chart above shows, his Apollo Euro Convertible Bond Fund was lagging the sector average return in the first 18 months period, but it's now beating the average.
The fund's August factsheet shows that the financials sector is the biggest source of issuance for the fund, accounting for 38.4% of the portfolio. The communications sector is second at 10.8%, and cyclical consumer goods is third at 9.7%.
In common with the UBS convertibles fund, the single biggest holding is a 4.6% position in US pharmaceutical company Gilead Sciences via its 1% CNV BDS 01/05/14 issue.