Pictet, the asset management arm of Swiss private bank Pictet & Cie, said, by investing in lower-duration high-yield bonds, which are less sensitive to shifts in interest rates, the Luxembourg-domiciled fund can offer investors the opportunity to secure stable income but with a lower volatility and limited drawdown risk compared to longer-duration high-yield debt.
The Pictet-EUR Short Term High Yield Fund is lead managed by Roman Gaiser who has 16 years experience managing high yield bonds.
Based in Geneva, Gaiser works with Alexander Baskov, Prashant Agarwal and Markus Orschulik who in turn are supported by equity and credit analysts and economic analysts. To invest, the team use a combination of top-down and bottom-up approaches which Pictet said is aimed at “creating a well diversified portfolio across shorter maturity buckets, sectors and ratings”.
The fund is currently registered for sale in Austria, Finland, Germany, Liechtenstein, Luxembourg, Portugal, Singapore, Sweden and the UK.
Commenting on the launch Gaiser said: “The market has now achieved a critical mass in European short term high yield, which makes this asset class both investible and desirable.”
