Pictet AM is merging above average EM funds managed by rated PMs

After a review of its Luxembourg fund range, Pictet Asset Management has merged two above-average equity funds from emerging markets, as Citywire Selector has learned.

As a result, the Pictet Emerging Europe fund, which raised $ 108 million at the end of April

Citywire AA-rated portfolio managers Hugo Bain and Christopher Bannon will remain with the company and continue to manage the Russia-focused portfolio, which the company claims is popular with global wealth managers.

The Pictet Emerging Europe Fund achieved a return of 28.3% in euros over the last three years to the end of April 2021.

The average manager in the Equities – Emerging Markets Europe sector achieved a return of 6.2% and the benchmark assigned by Citywire, the MSCI EM Europe GR EUR, rose by 9.58% over the same period.

The Luxembourg-domiciled version of the Pictet Emerging Markets High Dividend, which had assets of € 89 million at the end of April.

Citywire’s A-rated Mark Boulton and co-managers John Moorhead and Gita Ramakrishnan continue to manage the emerging markets high dividend strategy for the company’s large Japanese customer base.

The Pictet Emerging Markets High Dividend has returned 36.2% in US dollars over the past three years to the end of April 2021.

At this point, the average manager in Citywire’s Equity – Global Emerging Markets sector was returning 23.3%. The benchmark assigned by Citywire, the MSCI EM GR USD, rose by 26.54% over the same period.

A spokesman said funds being pooled into larger strategies have remained small in recent years or interest from European investors has declined.

Closure of European equity funds

Another strategy that was removed from the company’s Luxembourg portfolio was the Pictet European Selection fund.

The strategy was managed by Fabio Paolini, who continues to lead developed market stocks with a particular focus on Europe, Australasia, Far East (EAFE) and All Country World (ACWI) mandates for US clients.

“The review is part of our ongoing product management approach, which, in addition to introducing new strategies, also includes trimming funds according to investor needs,” said a company spokesman.

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