Download Pictet-Asian Local Currency Debt Fund Share in the potential

Pictet-Asian
Local Currency Debt Fund
For professional investors only
2
STRONG
REGIONAL
FOCUS
SOURCES OF RETURN
*
*
Interest rates
Currencies
Typically
16
Highly
experienced
invests across 10+
investment
Asian countries
professionals
Share in the potential
for sustainable returns from Asia’s growing economies
7.6
%
Annualised return Asian local
currency debt asset class*
Pictet Asset Management
Diversification
BENEFITS*
*Source: JP Morgan/HSBC/Bloomberg.
Annualised historical data in USD:
31 Dec 2001 - 30 June 2014.
Pictet-Asian
Local Currency Debt Fund
REASONS TO INVEST
Potential for growth
Objective
Asian local currency bonds have generated good
returns over the last 12 years*.
The fund is actively managed and aims to capture
the market return and further add positive
incremental returns in all market conditions,
while minimizing volatility.
Two sources of return
Aims to capture growth from bonds and
increases in currency values.
Strong opportunities with
lower volatility
Proven track record
The team has a strong track record in delivering
good returns regardless of market conditions.
The low-debt, fast-growing economies of Asia
offer investors sustainable, long-term returns,
at lower risk than local currency debt in other
emerging markets*.
*Source: JP Morgan/HSBC/Bloomberg. Annualised historical data in USD: 31 Dec 2001 - 30 June 2014.
WHY NOW?
The developed economies of Europe, North America and Japan face low prospects for growth and
have high levels of debt. Current low interest rates also offer poor returns for investors. By contrast,
Asian countries, have undergone a radical transformation over the last decade to achieve increasing
growth and economic stability.
Rising demand has allowed Asian countries to increase the range of bonds available, offering a wide
choice of exciting opportunities.
WHAT IS IT?
HOW CAN IT HELP?
WHO IS IT FOR?
The fund offers exposure to an asset
class which has a low to moderate
correlation with other asset classes.
The fund invests primarily in Asian
local currency bonds and currencies.
At a time of low returns from
developed markets, it allows investors
to access the high yields available from
Asian debt, as well as the potential to
benefit from growth in the value of
these nations’ currencies.
This fund could be suitable for
investors who are prepared to invest
for the long-term and are willing to
take a potentially higher risk with
their investment.
Pictet Asset Management 2
Asian debt has been one of the most significant investment themes
of the last twelve years. Against a background of slowing global
growth, it has delivered annualised returns of 7.6% with lower
volatility than comparable strategies such as Latin American and
global local currency debt.
SIMON LUE-FONG
Head of Pictet Emerging Debt team
POSITIVE RETURNS WITH LOW VOLATILITY FROM ASIAN DEBT
Annualised returns and volatility in USD for local currency Asian debt vs other asset classes*
RETURNS
US
Government
Bonds
Asia
Local
Bonds
Investment
Grade
USD
Bonds
Emerging
USD
Bonds
Global
High Yield
USD Bonds
10.0%
Latin
American
Local
Bonds
7.6
Emerging
Local
Currencies
Commodities
Emerging
Equities
13.4%
11.2%
10.6% 12.2%
%
7.1%
Emerging
Local
Bonds
7.7%
7.1%
5.0%
Volatility %
0
5
10
15
20
LOW VOLATILITY
25
HIGH VOLATILITY
*Source: JP Morgan/HSBC/Bloomberg. Annualised historical data: 31 Dec 2001 - 30 June 2014.
ASIA LOCAL CURRENCY DEBT INDEX COUNTRY WEIGHTS**
WHAT ARE THE RISKS?
By investing across Asia, the fund offers exposure to a wide range of bonds
and currencies from some of the world’s most dynamic economies.
•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.
CHINA
11.6%
INDIA
6.1%
KOREA
20.0%
HONG KONG
11.1%
TAIWAN
2.1%
THAILAND
7.6%
MALAYSIA
SINGAPORE
10.7%
15.0%
PHILIPPINES
6.2%
INDONESIA
9.6%
•Investments in emerging
markets can potentially be of
higher risk and volatility than
those in developed markets.
•Investments are made in assets
that are denominated in foreign
currency and are not hedged
back to the base currency of the
fund. Changes in exchange rates
may therefore affect the value of
the investments.
**HSBC Asia Local Bond Index. Source: Pictet Asset Management/Bloomberg/HSBC, typical index country weights
Pictet-Asian Local Currency Debt Fund3
HOW WE INVEST
REGIONAL OVERVIEW
COUNTRY ANALYSIS
INTEREST RATES
CURRENCIES
RISK MANAGEMENT
First, we assess the
regional risk outlook.
This helps us see how
attractive conditions
are for taking risk,
considering factors
such as monetary
policy, geopolitical
tensions and the
economic cycle.
We examine the
economic fundamentals
of each country, meeting
key government figures
and other policy
makers. Our regional
country views are
formed by our own
research as well
as inputs from
other investment
professionals and
external research.
We see interest rates
and currencies as
separate sources of
return, so we examine
them independently.
Here, some of the
factors that we
consider are monetary
policy, politics and the
prospects for inflation
and growth.
A powerful source
of additional returns,
alongside interest rates.
Some of the factors we
look at are currency
policy and growth
differential to assess
which currencies are
likely to rise or fall
in value.
Risk is monitored daily
by our investment team
and independently by a
dedicated emerging
markets risk manager,
as well as by our
firm-wide Risk Control
Unit. We also have a
disciplined process
in place that helps us to
lock-in gains and limit
potential losses.
KEY FUND FACTS
ABOUT PICTET ASSET MANAGEMENT
LAUNCH DATE
INVESTMENT TEAM
Pictet was founded in Geneva in 1805. Pictet is a partnership of eight owner
managers that encourages us to focus on the group’s long-term success.
26/06/2006
Simon Lue-Fong
Pictet Asset Management is the division responsible for asset management
for institutional investors and investment funds. With over 730 employees,
including 280 investment professionals, we operate from 17 centres worldwide.
Orlena Yee
BENCHMARK
Mary-Thérèse Barton
HSBC Asia Local
Bond Index
Philippe Petit
Wee-Ming Ting
LEGAL STATUS
Sub-fund of the Luxembourg-registered
Pictet SICAV
We offer a full range of active and quantitative investment solutions including
equity, fixed income and alternative strategies for leading institutions globally.
Our clients include some of the world’s largest pension funds, mutual funds,
sovereign wealth funds and financial institutions. We are dedicated to building
lasting partnerships with our clients by exceeding their expectations for
investment performance and service.
We manage USD 158 billion (CHF 140 billion / EUR 115 billion / GBP 92
billion) in assets as at the end of June 2014.
WANT TO FIND OUT MORE?
www.pictetfunds.com
www.pictet.com
Disclaimer
For professional investors only.
This marketing material is issued by Pictet Funds (Europe) S.A, an entity belonging to the Pictet Asset Management business line. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or
resident of or located in any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Only the latest version of the fund’s prospectus, regulations, annual and
semi-annual reports may be relied upon as the basis for investment decisions. These documents are available on www.pictetfunds.com or at Pictet Funds (Europe) S.A., 15, avenue J. F. Kennedy L-1855 Luxembourg.
The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Funds (Europe) S.A. has not taken any steps to ensure that the
securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances
of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience,
investment goals and financial situation, or to obtain specific advice from an industry professional.
The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested. Risk factors are listed in
the fund’s prospectus and are not intended to be reproduced in full in this document.
Past performance is neither a guarantee nor a reliable indicator of future results. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares. This marketing material is not
intended to be a substitute for the fund’s full documentation or for any information which investors should obtain from their financial intermediaries acting in relation to their investment in the fund or funds mentioned in this document.
© Copyright 2014 Pictet – Issued in August 2014.
Pictet-Asian Local Currency Debt Fund
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