Contrary to what some global bond managers and consultants said, Mr. Scott noted Brandywine's new business is being driven by clients who are actually diversifying away from domestic core and core-plus mandates and looking to global fixed income as a strategy for higher returns. He could not supply client names.
Officials at WAMCO declined to comment; officials at the other firms did not return calls.
However, four U.S. global bond placements were publicly reported for the nine months ended Sept. 30, compared with eight for all of 2005, according to David Holmes, a partner at Eager, Davis & Holmes LLC, a Louisville, Ky., money manager consulting firm.
Mr. Holmes noted, however, that both core-plus and high-yield bond portfolios may include non-U.S. bonds. He said there were seven core-plus and 19 high-yield placements during the first nine months of 2006, compared with nine and 18 placements, respectively, for all of 2005.
"There has been a slowdown in demand for global bond mandates by U.S. investors, although there has continued to be healthy demand from European and U.K.-based investors," said Mark Morris, principal and senior portfolio strategies at Payden & Rygel, London.
Mr. Morris cited several contributing factors: higher yields in U.S. Treasury bonds, investors' willingness to focus on U.S. domestic benchmarks with a core-plus approach and the trend toward liability-driven investing, which has reduced demand for non-domestic fixed-income assets.
Mr. Morris wouldn't provide current asset information. But according to eVestment Alliance, Atlanta, the firm had about $4.6 billion in institutional assets in its global short bond strategies as of June 30.
Like Brandywine, others continue to see growth in their global bond businesses.