Pictet Asset Management has launched a global absolute return fixed income fund designed to operate free of benchmark constraints.
The new strategy, which is formally called the Pictet-Absolute Return Fixed Income fund, will be Luxembourg-domiciled.
Management of the fund will fall to the group’s co-head of global and regional bonds, Andres Sanchez Balcazar.
The fund has a flexible and benchmark-unconstrained approach which targets positive returns while helping to protect the fund against rising rates.
It can invest across rates, spreads and FX and also access all fixed income sectors in both developed and emerging markets.
The fund targets a 3-4% over cash per annum gross of fees. It is available in US dollar, euro and Swiss franc share classes.
Commenting on the launch, Sanchez Balcazar said: ‘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.’
Sanchez Balcazar has over 16 years of experience in managing bond portfolios and is supported by three investment managers on the fund.
He joined from Western Asset Management in February 2011 and currently oversees seven fixed income funds covering European, global and North American bond markets.