Fund manager

Finweek English Edition - - FUND IN FOCUS - Ac­cord­ing to Hansen,

one of the things that sets Brandy­wine apart from other in­vest­ment man­agers is its abil­ity to use cur­ren­cies as an­other form of gen­er­at­ing re­turns. “So what you of­ten find when you look at the con­struc­tion of their port­fo­lios, is that the al­lo­ca­tion to a coun­try’s bonds of­ten varies in re­la­tion to the amount of cur­rency ex­po­sure they have to that coun­try,” says Hansen.

A good ex­am­ple of this con­cept at work in the port­fo­lio re­lates to the hold­ings of emerg­ing mar­ket cur­ren­cies and debt. The fund has a 42% ex­po­sure to emerg­ing mar­ket bonds, but a 49% ex­po­sure to emerg­ing mar­ket cur­ren­cies. “Yes, they think emerg­ing mar­ket cur­ren­cies have been over­sold on the ba­sis of ris­ing in­ter­est rates in the US (which will strengthen the US dollar). So they think emerg­ing mar­ket cur­ren­cies look cheap at the mo­ment,” says Hansen.

Part of the op­ti­mism at­tached to emerg­ing mar­ket cur­ren­cies is linked to a very up­beat view of the global econ­omy. “Brandy­wine think all the stim­u­la­tion from cre­at­ing large amounts of money in the eco­nomic sys­tem is go­ing to come through in a big way shortly. They think the global econ­omy will ex­ceed growth ex­pec­ta­tions and that will be very pos­i­tive for emerg­ing mar­kets too,” he ex­plains.

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