Pictet AM launches Absolute Return fund

The Ucits-compliant fund, domiciled in Luxembourg, will be managed by Andres Sanchez Balcazar, co-head of global and regional bonds at Pictet.

Mr Sanchez Balcazar said: “We identify long-term themes that are based on facts and are quantifiable.

“Our aim is to build a robust portfolio that is liquid, well-diversified and independent of a single scenario or forecast.

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“After three decades of falling interest rates, bond investors would do well to look at an approach to bond investing that is not tied to a fixed income benchmark and can invest globally across all sectors.”

The fund targets an annual return of between 3 and 4 per cent more than cash, gross of its fees, and is available in dollar, euro and Swiss franc share classes.

Adviser view

Patrick Connolly, certified financial planner at Chase de Vere, said: “With fixed interest investments facing a number of potential headwinds, including the likelihood of interest rate rises at some point, we advocate selecting managers with a flexible mandate who have the best opportunities to avoid any fallout. This fund certainly ticks that box, although we prefer to use UK-domiciled funds with a sterling share class and are particularly sceptical about any fund with ‘Absolute Return’ in its name.”