Last updated: 09:40 / Monday, 16 November 2020
Fixed Income: emerging markets, absolute return and hedge funds

Pictet Asset Management: Their Capabilities

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  • Pictet Asset Management's (Pictet AM) range of investment capabilities is pioneering and differentiated
  • Pictet AM does not do everything, rather they focus on the areas where they can add value for their clients
  • Pictet AM has been building their fixed income business since the early 1980s, expanding their capabilities over time to meet client need
  • All of Pictet AM's long-only fixed income strategies incorporate ESG criteria into their investment processes. For investors who want to go further, they can offer best-in-class approaches

Pictet Asset Management's (Pictet AM) range of investment capabilities is pioneering and differentiated. Pictet AM does not do everything, rather they focus on the areas where they can add value for their clients.

Fixed income capabilities

Pictet AM has been building their fixed income business since the early 1980s, expanding their capabilities over time to meet client needs.

Today Pictet AM offers their institutional clients a broad spectrum of fixed-income strategies encompassing global strategies and absolute return approaches, investment grade and high yield developed credit, Swiss bonds, emerging market bonds, hedge funds as well as money market funds.

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Pictet AM's approach

Pictet AM does not impose a central investment style on their fixed income teams. But each team adheres to three broad principles:

  • Diversification, which is at the core of all of Pictet AM's fixed income portfolios.
  • A free exchange of ideas generated by their experienced analysts and encouraged by their team-based approach, followed by the clear ownership of investment decisions by the portfolio managers.
  • Risk management, which is key to achieving investment objectives. Pictet AM's fixed income platform benefits from a dedicated risk management function whose forward-looking analysis helps their managers to calibrate the risk exposure of each client portfolio. Pictet AM's risk team's scrutiny of portfolio exposure helps drive transparent and precise feedback to their clients on how their assets are truly faring.

Responsible investing

Responsibility has long been central to Pictet AM, which is why they are at the forefront of the industry in incorporating environmental, social and governance (ESG).

All of Pictet AM's long-only fixed income strategies incorporate ESG criteria into their investment processes. For investors who want to go further, they can offer best-in-class approaches.

The pillars of their responsible approach:

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Below are some of Pictet AM’s key fixed-income strategies: emerging bonds marketsabsolute return and hedge funds

  • Emerging bonds markets

Pictet AM has been managing emerging market debt assets since the late 1990s. Over time, they have developed their expertise in all segments of the asset class, with team members located in London and Singapore.

Today, Pictet AM offers emerging market debt exposure through several investment approaches, covering sovereign and corporate issuers on a global and regional basis.

In their sovereign teams – where Pictet AM has the longest track records – their goal has always been to provide meaningful exposure to emerging markets with a defensive profile in down markets.

Please click here for more information on Pictet AM's fixed income emerging market capabilities.

  • Absolute return fixed income

Pictet AM's fixed income absolute return strategies aim to provide investors with steady, risk-adjusted absolute returns despite a diverging yield environment. They are not constrained by any market benchmark and can invest globally across all fixed income sectors. Each strategy is differentiated by its risk-return profile. Pictet AM places a particular focus on reducing volatility and ensuring liquidity for their investors.

Pictet AM's absolute return fixed-income strategy is a flexible and unconstrained approach to bond investing. It follows a fact-based investment process underpinned by three principles: long term, value and robust. The team seeks to build a liquid portfolio, diversified across rates, spreads and foreign exchange strategies globally.

The strategy’s risk and return objectives can be adjusted, depending on client requirements.

Please click here for more information on Pictet AM’s absolute return capabilities.  

  • Fixed income hedge funds

With Pictet AM’s strong experience in fixed income and hedge funds, expanding their investment offering to fixed income hedge funds was a natural progression.

Pictet AM started with the launch of Kosmos, a global long/short credit strategy, in 2011. Since then, they have also launched the Sirius strategy in 2019, which follows a liquid global macro emerging market long/short fixed income approach, as well as a long/short distressed and special situations debt strategy at the end of 2019.

Please click here for more information on Pictet AM’s hedge fund capabilities.

 

 

Important notes

This material is for distribution to professional investors only. However it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation. Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning.  Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.  Past performance is not a guide to future performance.  The value of investments and the income from them can fall as well as rise and is not guaranteed.  You may not get back the amount originally invested. 

This document has been issued in Switzerland by Pictet Asset Management SA and in the rest of the world by Pictet Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.

For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.

Pictet Asset Management Inc. (Pictet AM Inc) is responsible for effecting solicitation in North America to promote the portfolio management services of Pictet Asset Management Limited (Pictet AM Ltd) and Pictet Asset Management SA (Pictet AM SA).

In Canada Pictet AM Inc is registered as Portfolio Managerr authorized to conduct marketing activities on behalf of Pictet AM Ltd and Pictet AM SA. In the USA, Pictet AM Inc. is registered as an SEC Investment Adviser and its activities  are conducted in full compliance with the SEC rules applicable to the marketing of affiliate entities as prescribed in the Adviser Act of 1940 ref. 17CFR275.206(4)-3.

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