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Pictet unconstrained debt fund targets European selectors

Luxembourg-domiciled Global Fixed Income Opportunities fund seeks to exploit market volatility to offer investors higher returns in return for higher level of risk.


David Robinson

The Ucits-compliant unconstrained bond fund will have a “flexible, unconstrained approach to fixed income investing and will seek to generate higher returns by exploiting market volatility,” Pictet Asset Management said.

February was a volatile month for global markets after almost two years of relative calm. The FTSE 100 has fallen more than 11% this year and the S&P 500 has dipped more than 6%.

The fund will be diversified across rates, spreads and FX and can invest across all fixed income sectors in both developed and emerging markets.

The fund is managed by Andres Sanchez Balcazar, head of global bonds and senior investment managers Sarah Hargreaves, David Bopp, and Thomas Hansen.

Sanchez Balcazar said: “We take an approach to bond investing that is not tied to a fixed income benchmark. This way, we can look for attractive investment opportunities across the whole fixed income market to benefit from market volatility and relative value trades. Due to the fund’s higher risk profile, we aim to deliver higher returns than those of the average absolute return global bond funds.”

The fund targets a 6-8% over cash per annum gross of fees.

The fund is registered for distribution in the following countries: Austria, Belgium, Cyprus, Finland, France, Germany, Great Britain, Greece, Italy, Liechtenstein, Luxembourg, Netherlands, Peru, Portugal, Singapore, Spain, Sweden and Switzerland.