Pictet launches EM high dividend fund
Pictet Asset Management, the asset management arm of the Swiss private bank Pictet & Cie, is to launch the Pictet-Emerging Markets High Dividend fund on the 7th June 2012. The fund focuses on emerging market companies that offer high and sustainable dividends. The aim of the fund is to provide a return through dividend income and capital appreciation.
Mark Boulton and Stephen Burrows will manage the fund. Pictet has managed an Emerging Markets High Dividend fund for Japanese investors since 2007 (AUM of $3.6bn at end of April 2012). Pictet & Cie has more than €279bn in assets under management and custody at 31 March 2012.
Burrows says: “Most investors associate emerging markets with growth, rather than income. But the situation has changed and you can now also get an attractive level of income from emerging markets. A growing number of emerging markets companies provide sustainable and growing levels of dividend.
“In the current environment, the fund gives investors another source of income, with the added bonus of the long-term growth potential of emerging markets and possible gains from rising currencies,” says Burrows.
The investment process has a value bias and aims to exploit investment opportunities in the emerging markets high dividend yield universe. Boulton says: “We use a dividend sustainability score and fundamental analysis to help us to select those stocks with high and sustainable dividends and to avoid those stocks where the yield is not sustainable or where the company has a weak outlook.”
The fund will be structured as a compartment of the Pictet Luxembourg Sicav and is Ucits compliant.