Pictet Asset Management has made available to the Spanish market a new global fixed income fund with ultra-short-term duration.
The Fund, a Luxembourg-domiciled strategy managed by Pictet's money markets director Philippe Billot, is aimed at investors ready to take short durations of even just one year. It will invest in liquid instruments of the money market and in ultra-short-term bonds with an investment grade with an unconstrained approach as per sectors and geographies.
With an investment objective of preserving capital while generating risk-adjusted positive returns, the strategy takes as benchmark the EONIA Capitalisation Index.
Pictet-Ultra Short Term Bonds Fund is the latest strategy of the firm's short-term fixed income range, managed by the Swiss investment house since 1997.
The funds range's assets under management amount to €26bn to the date scattered across different strategies including the Sovereign Short-Term Money Market Fund, the Short-Term Money Market Fund and the Enhanced Liquidity.
José Daniel, director of clients service at Pictet AM Spain, says: "This low-cost strategy is attractive in a negative interest rates of sovereign debt environment.
"It is an efficient financial instrument to manage the cash with low volatility, allowing refunds in 48 hours even under stressed market conditions."