The Pictet-Global Fixed Income Opportunities fund, domiciled in Luxembourg and Ucits compliant, seeks to exploit market volatility and is diversified across rates, spreads and currencies. It can invest in developed and emerging markets.
Its ongoing charge is 0.86% and there is a performance fee of 10% for any returns 3% above Libor GBP Overnight.
Head of global bonds Andres Sanchez Balcazar manages the fund with support from senior investment managers Sarah Hargreaves, David Bopp, and Thomas Hansen.
Sanchez says that due to the fund’s higher risk profile they aim to deliver higher returns than the average absolute global bond funds.
“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,” Sanchez says.
The fund targets 6 – 8% over cash per annum gross of fees.
Pictet’s existing funds in the global bond space include the $2.4bn Absolute Return Fixed Income, €135.2m Global Bonds and €19.5m Global Bonds Fundamental funds.
Pictet performance in global bonds funds
| 6m | 1yr | 3yr | |
| Pictet Absolute Return Fixed Income | -4.2% | -10.1% | 10.1% |
| Pictet Global Bonds Fundamental | -1.7% | -3.7% | 13.4% |
| Pictet Global Bonds | -1.9% | -3.7% | 18.6% |
| FO Fixed Interest – Global sector | -2.1% | -4.2% | 13.9% |
