Emerging Markets

Pictet Expands Emerging Markets Offering With New Fund

Eliane Chavagnon London 17 January 2013

Pictet Expands Emerging Markets Offering With New Fund

Pictet Asset Management has unveiled an Emerging Corporate Bonds Fund, offering exposure to what it describes as the “rapidly expanding” emerging markets corporate bonds asset class.

The UCITS-compliant fund aims to outperform the JP Morgan CEMBI Broad Diversified Index by 2 per cent per annum over the course of 3-5 years.

It is managed by Alain-Nsiona Defise, who joined Pictet Asset Management last year from JP Morgan, where he was in charge of managing the emerging corporate business. Defise is supported by a team of four emerging corporate bonds credit analysts.

“When you compare emerging markets companies with those from developed nations, you tend to find lower leverage and higher yields,” Defise said. “With nearly 70 per cent investment grade bonds and with default and recovery rates comparable to other asset classes, emerging markets corporate bonds are safer than investors might think.”

The fund is structured as part of the Pictet Luxembourg SICAV.

In related news this week, Ignis Asset Management has confirmed that it is expecting to launch a SICAV absolute return emerging market sovereign debt fund this summer. The fund will be managed by Dan Beharall, who joined the firm at the end of 2010 as head of the emerging markets debt team, and will be aimed at third-party investors in the UK and abroad.


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