Pictet Asset Management launches first suite of CITs and chooses SEI as strategic partner
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Insights
The launch of Pictet Asset Management's suite of collective investment trusts (CITs) is a strategic move that could potentially expand their footprint in the US institutional retirement market. By offering these products, Pictet AM is tapping into the demand for diversified investment vehicles that can cater to the retirement planning needs of institutions. This is particularly relevant given the increasing interest in emerging markets and sustainable investments.
From a financial perspective, the introduction of these CITs may lead to an increase in assets under management (AUM) for Pictet AM, which is a critical performance metric for asset managers. The partnership with SEI Trust Company is noteworthy as it leverages SEI's operational platform and expertise, potentially enhancing the distribution and administration of these funds. The success of these CITs will largely depend on Pictet AM's ability to deliver competitive returns and on how well they can differentiate their products in a crowded market.
The Pictet Clean Energy Transition CIT aligns with the growing investor appetite for sustainable and ESG (Environmental, Social and Governance) investment options. By focusing on companies leading the clean energy transition, this CIT addresses the structural shift towards a more sustainable and low-carbon economy. This strategy not only caters to ethical and environmental considerations but may also offer investors exposure to industries poised for growth as the global economy transitions to cleaner energy sources.
Investors are increasingly scrutinizing the impact of their investments on the environment and Pictet AM's initiative could attract institutions looking to fulfill their ESG mandates. However, the performance of such funds often depends on regulatory support for clean energy and the market's overall sentiment towards sustainability. It will be important to monitor how these factors influence the fund's returns and investor interest over time.
Emerging markets (EM) debt is a complex asset class that offers both opportunities and risks. Pictet AM's launch of three distinct EM debt CITs demonstrates a granular approach to this segment, allowing investors to tailor their exposure according to their risk appetite and investment thesis. The Pictet Emerging Markets Debt Blend CIT offers a broad exposure to EM fixed income, which could be attractive for investors seeking diversification. On the other hand, the Pictet Emerging Markets Debt Local Currency CIT and Pictet Emerging Markets Hard Currency Debt CIT offer more focused strategies that cater to specific investor preferences regarding currency exposure.
The performance of these CITs will be influenced by a multitude of factors, including economic growth in EM countries, currency fluctuations and geopolitical risks. It's essential for investors to consider the volatility inherent in EM debt and to assess how these funds fit within their overall portfolio strategy. The active asset allocation approach of these CITs could be a key differentiator in navigating the complexities of EM fixed income investing.
Pictet AM, a leading active asset manager began investing in emerging markets in the mid-1980s and has since developed a range of fixed income and equity EM investment strategies. In the 1990s, Pictet AM pioneered thematic equity strategies offering investors the opportunity to capitalise on the most powerful trends shaping our world.
Pictet AM has chosen SEI as a partner for the launch of Pictet Clean Energy Transition CIT, Pictet Emerging Markets Debt Blend CIT, Pictet Emerging Markets Debt Local Currency CIT and Pictet Emerging Markets Hard Currency Debt CIT.
- The Pictet Clean Energy Transition CIT invests in companies leading the clean energy transition. The strategy supports the structural change towards a sustainable and low-carbon economy.
- The Pictet Emerging Markets Debt Blend CIT invests across the full spectrum of EM fixed income assets including hard currency sovereign and corporates as well as locally denominated bonds and currencies. The vehicle offers active asset allocation across the EM universe, providing access to a broad opportunity set.
- The Pictet Emerging Markets Debt Local Currency CIT primarily invests in locally denominated bonds and currencies. The vehicle may also invest in off-benchmark positions including hard currency sovereign and corporates with a maximum off-benchmark total of
30% - The Pictet Emerging Markets Hard Currency Debt CIT primarily invests in USD denominated sovereign bonds. The vehicle may also invest in off-benchmark positions including hard currency corporates as well as locally denominated bonds and currencies with a maximum off-benchmark total of
30% .
"We are excited to offer US institutions the opportunity to access proven Pictet Asset Management strategies that were previously only available to the largest institutions via mandates," explained Elizabeth Dillon, CEO of Pictet Asset Management (
"Asset managers are enhancing distribution by launching multiple share classes in various asset classes and investment strategies," added John Alshefski, Senior Vice President and Managing Director of SEI's Traditional Investment Managers business. "Our established turnkey operational platform and experienced, professional team of experts enable global investment managers, retirement plans, consultants, and advisors an efficient way to gain access to SEI's extensive CIT line-up. We're excited to welcome Pictet Asset Management to SEI and look forward to servicing and supporting their CIT business."
Note to Editors
About Pictet Asset Management & the Pictet Group
Pictet Asset Management includes all the operating subsidiaries and divisions of the Pictet group that carry out institutional asset management and fund management. Pictet Asset Management Limited is authorised and regulated by the
At December 31, 2023, Pictet Asset Management managed
The Pictet Group is a partnership of owner-managers, with principles of succession and transmission of ownership that have remained unchanged since foundation in 1805. It offers only wealth management, asset management, alternative investment solutions and related asset services. The Group does not engage in investment banking, nor does it extend commercial loans. With
Headquartered in
About SEI®
SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, make confident decisions, and protect futures. As of Dec. 31, 2023, SEI manages, advises, or administers approximately
About SEI Trust Company
SEI Trust Company (the Trustee) serves as the Trustee of the Trust and maintains ultimate fiduciary authority over the management of, and the investments made, in the Trust. The Trust is part of a Collective Investment Trust (the Trust) operated by the Trustee. The Trustee is a trust company organized under the laws of the Commonwealth of
CONTACT
Sarah Weigall
Media Relations, Group Communications, Pictet Group
+44 20 7847 5412
sweigall@pictet.com
Zach Allegretti
JConnelly
973 850 7341
zallegrettiii@jconnelly.com
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SOURCE Pictet Asset Management
FAQ
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