Pictet launches fund investing in Asia's corporate bonds

Pictet launches fund investing in Asia's corporate bonds

Pictet Asset Management has launched a fund that invests in Asia's corporate bond market. 

Pictet Asian Corporate Bond is hoping to tap into one of the fastest growing regions in the world with the highest credit quality in emerging markets.

The fund also invests in hard currency Asian investment-grade and high-yield corporate bonds, which offer attractive returns and low volatility. 

Alain Defise, head of emerging market corporate bonds at Pictet, said: "Asia's economy enjoys robust growth, while the region's companies have some of the best credit ratings in the world.

"Investing in Asian corporate bonds should appeal to long-term investors who want to diversify their existing global emerging bond portfolio."

The fund, which is domiciled in Luxembourg and Ucits compliant, is benchmarked against the J.P. Morgan Asia Credit Diversified index.

It is managed by a team based in London, Singapore and Hong Kong, led by Mr Defise.

The team uses a proprietary fundamental, valuation and technical selection framework to identify investments that have the best risk return profile.

Mel Kenny, chartered financial planner at London-based Radcliffe & Newlands, said: "There is still a desperate search for yield in portfolios so this is good news for those with an unconstrained mandate."