Pictet Asset Management has expanded its range of actively managed total return investment products ($11 billion under management) with the launch of the Pictet Total Return-Lotus fund, targeting special situations in Asian equity markets. Domiciled in Luxembourg under UCITS rules, with weekly valuation and liquidity, it has EUR classes and EUR hedging. It is registered in Spain and is transferable with no tax charge.
Pictet TR-Lotus captures opportunities in a way that differs from the traditional long-only approach in the Asia region, characterized by dynamic markets, often subject to major shocks, which generate opportunities for excess return relative to the risk taken. It includes short- and medium-term corporate catalysts, as well as long-term secular trends, such as the restructuring of the Chinese economy, growth in Southeast Asian countries, and improving Japanese corporate governance.
It seeks to generate uncorrelated sources of return, with limited volatility over the cycle, through strict risk management and rigorous analysis of companies and situations. Specifically, the new strategy identifies three areas: catalysts (equity, thematic and special situations), pre-events (mergers and acquisitions, divestitures/spin-offs) and announced mergers/acquisitions. The corresponding diversification will contribute to stable results, regardless of the market situation.
“Asia is a very important source of an alpha because of its size, diversity and less crowded opportunity set. However, these opportunities are not without risk, so we take a cautious investment approach with the right diversification”.Jon Withaar, head of Asia Special Situations, who will be based in Singapore.
Pictet TR-Lotus is managed by an experienced team of three professionals, led by Withaar and analysts Shawn Ban and Jeremy Thia, backed by Pictet AM, one of Europe’s leading hedge fund managers with a proven track record. Withaar has over twenty years of experience in Asian financial markets, has generated positive returns in periods of great difficulties, such as 2001, 2007-2008, 2015, and 2020.
Pictet TR-Lotus is the latest in Pictet AM’s range of total return funds, which includes the market-neutral Agora (European equities), Aquila (global equities) and Diversified Alpha (multi-strategy), directional long/short European (Short), Chinese (Mandarin) and global (Atlas and Atlas Titan) equities; Distressed & Special Situations debt; and long/short emerging markets debt (Sirius).