Pictet expands EM fixed income range

Pictet Asset Management has announced its Emerging Corporate Bond fund to boost its range of emerging market debt offerings.

The group said the fund, a Sicav, would seek to outperform the JP Morgan CEMBI Broad Diversified by 2% per annum over a 3-5 year period gross of fees.

Pictet said the fund had launched in November last year and had already attracted more than $600m (£373.9m) in investments.

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The fund is managed by Alain-Nsiona Defise, who joined the company last year from JPMorgan, where he was in charge of managing the emerging corporate business.

Mr Defise will be supported by a team of four dedicated emerging corporate bonds credit analysts.

“When you compare emerging markets companies with those from developed nations, you tend to find lower leverage and higher yields,” the manager said.

“With nearly 70 per cent investment grade bonds and with default and recovery rates comparable to other asset classes, emerging markets corporate bonds are safer than investors might think.”