Pictet launches Unconstrained Global Credit Fund

Pictet-Strategic Credit is an unconstrained global credit strategy which seeks to provide attractive risk-adjusted returns for long-term investors. It invests in a diversified portfolio designed to reduce risks, protect capital and capture higher yields.

The strategy also aims to achieve a low correlation to traditional risky assets by actively allocating assets across global credit markets.

The Global Financial Crisis, the Covid-19 pandemic and the unprecedented monetary and fiscal stimulus have distorted the global bond markets and changed investor attitude towards risk.

Not only are bond yields likely to remain low for longer, they have potential to have higher correlations to risky assets.

However, fixed income assets – and especially credit – should be an important building block for a diversified portfolio as they can provide attractive opportunities for long-term investors across the full business cycle.

Investors need to rethink the role of bonds in their portfolios, and be aware of the serious problems being stored up for the future.
— Jon Mawby, Head of Investment Grade Credit at Pictet Asset Management

Pictet-Strategic Credit aims to deliver a return of 5 per cent net of fees, per annum, over a rolling 3-5-year period. 

Jon Mawby, Head of Investment Grade Credit, and lead manager for the fund, says: “Investors need to rethink the role of bonds in their portfolios, and be aware of the serious problems being stored up for the future.

“It’s even more important to work with the cycle, to be sensibly and cautiously contrarian. When the credit markets are delivering equity-type returns at bond-type risks – in other words, when there’s been a panic – it makes sense to buy into pockets of value. And then, when investor confidence gets ahead of itself, when credit starts to deliver bond-type returns for equity-type risk, then it’s important to rebalance and retrench until the next cycle hits.”

Pictet-Strategic Credit is available for sale in Austria, Belgium, Denmark, Germany, Finland, France, Ireland, Luxembourg, the Netherlands, Norway, Sweden, Switzerland and the United Kingdom.

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