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Fixed income investments can help if you are looking for income, capital preservation and diversification.
Overview

While fixed income investing offers many benefits, low interest rates and a growing pool of potential choices have made finding the right investments more challenging. 

With a broad range of fixed income capabilities at our disposal and years of experience, our funds can help you negotiate this new, more complex environment.

Benefits of investing in fixed income

Investing in fixed income has a number of potential benefits:
reasons to invest in fixed income at Pictet Asset Management

Why an active approach?

We think an active investment approach is more likely to provide a better return over the long term than a passive solution and to help you achieve your investment objectives. 

Fixed income markets can be complex and the long-running expertise of our specialist investment managers means they may be able to uncover opportunities that others might miss, whilst protecting capital when needed.

Our approach to fixed income

Fixed income is a core strength for our firm and we offer a wide range of strategies including global, regional and emerging markets, corporate debt, and money market funds. We also offer more specialist strategies such as absolute return and hedge funds.

Our priority is ensuring that each one of our independent fixed income teams focuses only on investing, while benefiting from the support of our wider platform.

Raymond Sagayam, CIO Fixed Income

Investing for a better future

Sustainability has long been central to our company, which is why we are at the forefront of our industry in incorporating environmental, social and governance (ESG) criteria into all our investment processes – not least for our fixed income strategies.

What are the risks?

As with any other investment, investing in fixed income carries risks. It’s therefore important to find an experienced manager to manage these.

Investments in fixed income may be subject to the default/credit risk of issuers, interest rate risk as bond prices move inversely to changes in interest rates, and liquidity risk. Investing in higher-yielding or non-investment grade bonds might mean the risk of the issuer defaulting on the capital repayment is higher.

These strategies could also invest in emerging markets, where investments can be higher risk and more volatile, or denominated in a foreign currency meaning a change in exchange rates could affect their value. They may also use derivatives which carry similar risks, or use leverage. Investments are subject to the risk of material losses resulting from human error, systems failures or the incorrect valuation of the underlying securities.

Past performance is not a guide to future performance. The value and income of an investment can fall as well as rise and you may not get back the amount originally invested.


Selected insights

Read more about Fixed Income
Ways to invest

We believe that the fast-growing economies of emerging markets offer investors the potential for sustainable, long-term returns, particularly via their large sovereign and corporate debt markets.

We offer multiple ways to access emerging market bonds:

Global
Provides access to some of the world's fastest growing economies from a potential investment universe of 60+ emerging market countries. This broad approach provides wide-ranging investment opportunities whilst spreading potential risks. 

Hard currency 
Provides exposure to emerging market bonds without taking on currency risk. This is the most established emerging market debt asset class, comprised of sovereign and corporate bonds issued in major currencies such as US dollars or Euros. 

Local currency 
Provides exposure to emerging market debt opportunities in local currency debt instruments, which gives investors the added return potential from local interest rate or currency exposure.

Corporates
Provides access to the fast-growing opportunity in emerging market corporate bonds, denominated in major currencies such as US dollars or Euros. 

Short-term
Invests in either corporate or sovereign debt and offers a degree of protection from rising rates by focusing on securities with a short duration. Seeks to provide stable and attractive income with limited volatility.

Sustainable blend
Provides diversified emerging market debt exposure with a focus on ESG factors. As a blended approach, it combines our best ideas from both emerging market hard and local currency bonds. 

Regional
Bond strategies which focus on regions such as Asia, China, and Latin America, and which seek to capture the vast range of opportunities available in these dynamic markets through a combination of our local expertise and broad research capabilities.

Please select a representative fund from the list below to find out more

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Launch date

Developed markets offer a vast pool of investible debt securities across both governments and corporates. We offer a wide range of strategies for investors to suit their investment objectives and risk appetite. Our strategies invest across a range of assets, from the lower-yielding bonds issued by high-quality companies and governments to the higher-yielding bonds issued by lower-rated companies. We offer strategies in a range of developed market currencies such as US dollars or Euros.

Please select a representative fund from the list below to find out more

Fund size
Launch date

Absolute return fixed income
Traditional fixed income strategies seek to provide a relative return in excess of a benchmark index. The strategies Absolute Return Fixed Income and Global Fixed Income Opportunities, on the other hand, are unconstrained by benchmarks and so can invest wherever our managers see the best opportunities. Each has a different risk-return profile designed to meet different investor needs, and we place particular emphasis on liquidity and reducing volatility.

Please select a representative fund from the list below to find out more

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With our strong experience in both fixed income and hedge funds, combining the two and expanding our investment offering to fixed income hedge funds was a natural progression. We offer the following:

Global credit hedge fund
Investors who want to protect against a market correction in the current low-yield, high-valuation environment might consider a global credit hedge fund strategy (Kosmos). The strategy can act defensively by allocating less when assets are expensive, and can extract the relative value from taking long/short positions in credit. 

Global macro emerging markets fixed income
The case for investing in emerging markets is clear, but emerging market assets are too often subject to volatility – emerging stocks, bonds and currencies can all experience bouts of turbulence. Sirius strategy offers a solution which provide access to these assets for investors, but with lower volatility. The strategy aims to generate a positive risk-adjusted return in all market conditions by the use of long/short positions, as well as the ability to invest in a broad selection of assets.

Please select a representative fund from the list below to find out more

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Launch date

We started investing in Swiss bonds in the 1990s. Our long-standing expertise allows us to offer investors a broad range of Swiss bond solutions including: active, semi-active passive and Socially Responsible Investment (SRI). Our investment style is more strategic than tactical, is fundamental and is based on a strong capital protection discipline.

Please select a representative fund from the list below to find out more

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Our global bond strategies seek to identify the most attractive opportunities from the largest pool of all – the global bond market, at over $115trn in size1. We offer both a flexible approach to bond investing, as well as one which focuses on the fundamentals – a country’s ability and willingness to repay debt. In doing so, we create high-quality bond strategies to suit investors’ investment objectives.  

1 Source: Institute of International Finance, as at June 30, 2019. 

Please select a representative fund from the list below to find out more

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We started managing Money Market assets in the 1990s. What makes us different is that we invest in a broader opportunity-set of assets than a typical money market manager. We offer an established range of funds, domiciled across Luxembourg and Switzerland, and in various currencies. These include: sovereign short-term money market; short-term money market; enhanced liquidity and ultra-short-term bond. The funds are compliant with the new European Money Market Regulation.

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Our team

We have been building our fixed income business since the 1980's, adding to our capabilities to meet client needs.

Pictet Asset Management Fixed Income - by the numbers
Fixed income today

Source: Pictet Asset Management. All data as at 30.09.2019.

Contact us

For more information please contact your Pictet Asset Management representative or a member of the team via the contact details listed below:
Funds

Please select a representative fund from the list below to find out more

Fund size
Launch date