Pictet Asset Management has launched the Pictet Absolute Return Fixed Income fund, domiciled in Luxembourg and UCITS compliant.
Andres Sanchez Balcazar, senior investment manager and co-head of global and regional bonds, is the fund manager. He has over 16 years of experience in managing bond portfolios and is supported by three experienced investment managers.
The fund has a flexible and benchmark-unconstrained approach which targets positive returns while helping to protect the fund against rising rates. It is well diversified across rates, spreads and FX and can invest across all fixed income sectors in both developed and emerging markets. Economic forecasting does not form part of the investment process.
“We identify long-term themes that are based on facts and are quantifiable,” says Sanchez Balcazar. “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.”
The fund targets a three to four per cent over cash per annum gross of fees.