Miner, Loo and Smith have obliterated the competition in the Multi-Sector Income category, with stunning three-year total returns of 40.1%. The average manager in that category has returned a not unhealthy 8.2% over that period, compared with the Bloomberg Barclays US Aggregate Bond index’s 4.2%.
The secret to their returns – and their Citywire AAA rating? A trade in private mortgage-backed securities. The team buys small bond fragments (frequently less than $2 million) at a heavy discount from distressed sellers, often accumulating institutional-sized positions in one bond through these trades. Although Miner, Loo and Smith now face more competition, they recently told investors that the distressed trade will remain a focus.
Thomson and Dillon have earned their first rating, an AA, thanks to a concentrated portfolio that is willing to deviate from its benchmark, the Russell Global Large Cap index.
At the end of May, the fund had a 35.9% allocation to the information technology sector, compared with the index’s 18.5% allocation to the space. Microsoft (5.9% of the portfolio) and Alphabet (4.7%) are Thomson and Dillon’s biggest equity holdings.
The duo has returned 36.5% over the past three years, compared with the index’s 28.7% return. A manager ratio of 0.64 places Thomson and Dillon fourth out of 24 managers in the Global Large-Cap Growth sector.
Burdine, who co-manages the AllianzGI Micro Cap and AllianzGI Ultra Micro Cap funds with K. Mathew Axline, Robert Marren and Stephen Lyford, has achieved his first-ever A rating from Citywire.
Burdine has a manager ratio of 0.43, placing him 48th out of 193 managers in the Small-Cap Growth category. A specialism in micro-cap stocks differentiates him from his small-cap peers and gives Burdine and his co-managers an opportunity to make high conviction decisions.
The AllianzGI Micro Cap fund has made a big bet on AxoGen, which manufactures surgical products for repairing nerve damage. At the end of the first quarter, AxoGen was the fund’s biggest holding at 2.04%.