The Luxembourg Sicav, whose launch was announced in a press release issued on 3 October 2024, aims to offer a “diversified portfolio of fixed income assets.” Classified as an article 8 fund under the Sustainable Finance Disclosure Regulation, which means it promotes environmental and/or social characteristics, the fund is “focused on capital preservation” and allocates roughly 70% of the portfolio to investment grade credit and 30% to high yield bonds, said the firm. This is meant to combine stability with higher yield potential.

The fund will be managed by Mathieu Magnin, Kyle Kloc and Frédéric Salmon, “a seasoned team of credit specialists in both investment grade and high yield,” said Ermira Marika, head of developed markets credit at Pictet Asset Management. “They seek to deliver a predictable return within a defined time horizon (2028) by investing in and holding bonds to maturity and limiting transactions. Our goal is to offer clients a solution that balances income generation with capital preservation.”

As of 30 June 2024, Pictet AM managed €263bn in assets and has 18 business development centres around the world, including in Luxembourg.