Pictet Asset Management’s multi asset team are using direct loan investments to the aircraft sector to diversify their holding in its new fund.
The fund was launched at the end of June for the ex-Barings team, who joined Pictet in November 2014.
The team of Andrew Cole, Shaniel Ramjee and Percival Stanton, have started making direct loan investments in the aircraft sector, which currently makes up 6 per cent of the fund’s portfolio.
Mr Ramjee noted the interest rates on the investments are above 8 per cent at the moment and if they dropped below the group would be less likely to participate.
Its latest investment in this style had an 8.25 per cent yield, which was double the yield on an Emirates corporate bond.
Mr Ramjee said: “To date, few fund companies have moved in on these deals providing direct financing to corporates, and returns are still attractive.”
