The Luxembourg-domiciled Pictet-Global Bonds Fundamental fund, which opened to investors on January 31, is lead managed by Mickael Benhaim, co-head of global and regional bonds at Pictet.
The fund invests in global government bonds using a fundamental framework to identify an issuer’s ability and willingness to meet its debt obligations.
The product is being offered as an alternative to funds that rely on traditional market-capitalisation weighted fixed income benchmarks, as this can push investors to buy the bonds of sovereigns that borrow the most regardless of their ability to service this debt in the long term.
No distinction is made between developed and emerging market sovereigns, which the manager claims could offer a superior way to mitigate risk and enhance returns.
Sébastien Eisinger, head of fixed income at Pictet, says: “As an alternative or as a substitute to traditional investing, investors should start by analysing the fundamentals.
“Only then will they be able to reduce the risks and maximise the opportunities that are emerging in this period of rapid change for the world economy.”