Fund Management
What's New In Investments, Funds? - Pictet

The latest offerings in investments, such as funds and structured products, and other notable developments.
Pictet Asset Management
Pictet
Asset Management has launched the Pictet-Strategic Credit
fund. It is domiciled in Luxembourg and is compliant with
pan-European UCITS fund rules.
The fund has an unconstrained global credit strategy that seeks
to provide risk-adjusted returns for long-term investors. It
invests in a diversified portfolio designed to reduce risks,
protect capital, and capture higher yields. The strategy also
aims to achieve a low correlation to traditional risky assets by
actively allocating assets across global credit markets, Pictet
said in a statement late last week.
The Swiss firm said the fund draws its rationale from how the
2008 financial crisis, this year’s COVID-19 pandemic, and
ultra-loose central bank monetary policy have distorted bond
markets, and investor attitudes about risk.
“Not only are bond yields likely to remain low for longer, but
they also have the potential to have higher correlations to risky
assets,” Pictet said. However, it continued, “fixed income assets
- and especially credit - should be an important building block
for a diversified portfolio, as they can provide attractive
opportunities for long-term investors across the full business
cycle.”
The strategy is designed to deliver a return of 5 per cent net of
fees, per annum, over a rolling three- to five-year period.
“Investors need to rethink the role of bonds in their portfolios
and be aware of the serious problems being stored up for the
future,” Jon Mawby, head of investment grade credit at Pictet
Asset Management, and lead manager for the fund, said. “It’s even
more important to work with the cycle, to be sensibly and
cautiously contrarian. When the credit markets are delivering
equity-type returns at bond-type risks - in other words, when
there has been a panic - it makes sense to buy into pockets of
value. And when investor confidence gets ahead of itself, when
credit starts to deliver bond-type returns for equity-type risk,
then it’s important to rebalance and retrench until the next
cycle hits.”
Pictet-Strategic Credit is available for sale in Austria,
Belgium, Spain, the Netherlands, Germany, France, the United
Kingdom, Luxembourg, Denmark, Finland, Norway, Sweden, and
Ireland.