Pictet Asset Management's Pictet Emerging Corporate Bonds fund has attracted $600m since launch in November, according to figures published today.
Pictet Asset Management’s Pictet Emerging Corporate Bonds fund has attracted $600m since launch in November, according to figures published today.
As the name suggests, the Ucits compliant fund offers exposure to emerging markets corporate bonds. Performance will be measured against the the JP Morgan CEMBI Broad Diversified index, and the fund aims to beat this by 2% per annum over a 3-5 year period.
Alain-Nsiona Defise, who joined Pictet last year from JP Morgan, manages the fund, supported by a team of four emerging market corporate bond credit analysts.
“Emerging markets corporate bonds offer investors a different way to benefit from attractive yields and strong fundamentals from companies based in emerging markets,” said Defise. “When you compare emerging markets companies with those from developed nations, you tend to find lower leverage and higher yields. With nearly 70% investment grade bonds and with default and recovery rates comparable to other asset classes, emerging markets corporate bonds are safer than investors might think.”