Credit Attractive Source Of Returns – Pictet AM

Amanda Cheesley

15 April 2024

Credit has returned as an attractive source of risk-adjusted returns, according to Jon Mawby, co-head absolute and total return credit, at also emphasised on Friday how worries that US rates will stay higher for longer remained the main theme in markets, despite more muted producer price data. In UBS GWM's view, the recent strength of inflation and labour market data will make it hard for the Fed to cut rates until September. But the firm believes that the backdrop for quality bonds and quality equities remains positive.

Mawby co-manages the Luxembourg-domiciled Pictet-Strategic Credit fund which aims to gain exposure to a range of bonds, including corporate, government bonds and convertible bonds, as well as money market instruments. It invests worldwide, including in emerging markets and mainland China, and can invest across any sector and credit quality.

Mary-Therese Barton, chief investment officer of fixed income at Pictet AM, highlighted how the firm is building its presence in Asia. Last year, the firm launched Pictet-China Environmental Opportunities, a concentrated active equity fund investing in Chinese environmental solutions providers. It seeks capital growth by investing in Chinese companies operating in five environmental segments: renewable energy; green transport; industrial decarbonisation; resource efficiency; and environmental protection.

It is offered as a Luxembourg-domiciled UCITS fund, registered for sale in Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Liechtenstein, Luxembourg, the Netherlands, Norway, Portugal, Singapore (accredited investors only), Spain, Sweden, Switzerland and the UK. See more here.

However, Barton underlined at the roundtable that developed markets are still crowding out emerging markets, due to macro-economic and geopolitical risks. She believes that there is a strong case to be made for emerging markets in the longer-term.