Fund Management

Pictet Launches Absolute Return Fixed Income Fund

Stephen Little Reporter London 23 January 2014

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Pictet Asset Management, part of Swiss banking house Pictet, has launched a UCITS compliant absolute return fund that has a benchmark unconstrained approach.

Pictet Asset Management, part of Swiss banking house Pictet, has launched a UCITS compliant absolute return fund that has a benchmark unconstrained approach.

The Luxembourg-domiciled Pictet Absolute Return Fixed Income fund, is managed by Andres Sanchez Balcazar, senior investment manager and co-head of global and regional bonds.

Balcazar is supported by three investment managers and the fund targets a 3-4 per cent over cash per annum gross of fees.

The fund can invest across all fixed income sectors in both developed and emerging markets and is diversified across rates, spreads and FX. It is available in dollar, euro and Swiss franc share classes and economic forecasting does not form part of the investment process.

“We identify long-term themes that are based on facts and are quantifiable. Our aim is to build a robust portfolio that is liquid, well diversified and independent of a single scenario or forecast. After three decades of falling interest rates, bond investors would do well to look at an approach to bond investing that is not tied to a fixed income benchmark and can invest globally across all sectors,” said Balcazar.

In other recent news, earlier this month Pictet Asset Management appointed Luke Chua as senior investment manager for emerging corporate bonds to its London-based team.

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