Pictet Asset Management launches new absolute return fund
Pictet Asset Management (PAM) has launched the PF-Absolute Return Global Diversified, managed by Gianluca Oderda and Philippe Pol.
The fund, which aims to generate a positive absolute return, equal or superior to the EONIA* index plus four per cent gross of fees annually (independent of overall market conditions), invests in Pictet's own funds and is managed by Gianluca Oderda and Philippe Pol of Pictet Asset Management's 'Multi Asset and Total Return' unit.
The strategy is to invest in a highly diversified set of asset classes, exploiting the added value generated by Pictet's 'best in class' funds. The fund is modelled on, and draws on PAM's experience in managing the already successful Alphanatics multi-strategy, internal multi-manager hedge fund.
'We aim to manage 'beta' exposure by using over 30 liquid derivative instruments, covering developed and emerging equity markets, as well as fixed-income markets, for all the major currencies, maturity ranges and credit qualities,' said Oderda. He continued: 'The manager selection process within the 'alpha' strategy is based on the quality of the investment process, confidence in the investment team managing the fund, past performance and the portability of the alpha.'
The 'beta' portfolio and the 'alpha' portfolio are combined to satisfy risk management and margin constraints - foreign currency exposures are hedged whenever possible. Exposures are monitored on a daily basis using Pictet's leading edge risk management platform. The target volatility of the fund is similar to that of a balanced portfolio comprising 30 per cent equities and 70 per cent bonds, but is likely to range between 5 and 10 per cent.
The fund is available to institutional investors and distributors in the UK as well as to institutional, private banking and retail investors in Switzerland, Austria, Liechtenstein, Finland and Portugal. The minimum investment for the I share class (institutional investors) is EUR 1 million with an AMC of 0.50 percent. There is no minimum investment for the P share class (private investors) with an AMC of 1.00 percent.
Pictet Asset Management (PAM) is the institutional business division of Pictet & Cie, the largest private bank in Switzerland. Pictet & Cie was founded in 1805 in Geneva and is wholly owned by eight partners. Total assets under management amounted to over CHF194 bn (USD148 bn, EUR123 bn) at 31 March 2006, placing Pictet among the largest independent asset managers based in Europe.
PAM includes all the operating subsidiaries and divisions of the Group that carry out institutional asset management. Assets managed by PAM alone amounted to CHF99 bn (USD76 bn, EUR63 bn) at 31 March 2006, sourced worldwide and invested throughout the world's equity and fixed income markets. With eleven centres around the world, PAM enjoys a global reach, extending from London, Geneva, Paris, Frankfurt, Madrid, Milan and Zurich to Tokyo, Singapore, Hong Kong and Montreal.
Pictet Asset Management Limited is authorized and regulated by the Financial Services Authority.
* Eonia (Euro OverNight Index Average) is the fixing of the overnight euro deposit rate published by the European Central Bank.
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