Pictet Asset Management announces the launch of two new actively managed ETFs in the United States: the Pictet Emerging Markets Debt ETF and the Pictet Emerging Markets Rising Economies ETF, according to BusinessWire.
These two vehicles are the fifth and sixth active ETFs from the group in the American market. Pictet manages over $20 billion in American dollars in emerging markets and employs more than 50 specialized investment managers, analysts, and strategists there.
EMFI: Emerging debt in strong currencies The first fund, EMFI, invests in sovereign and corporate bonds denominated in US dollars issued by entities from emerging markets.
The choice to focus on strong currencies responds to a risk calibration logic. Fluctuations in emerging market currencies are one of the main factors amplifying volatility for non-resident investors, and their systematic coverage remains costly in an environment of still high interest rates.
“With stronger fundamentals and more proactive policies, emerging markets outperform developed economies,” said Chris Preece, portfolio manager, emerging markets debt at Pictet Asset Management, on ETF Database.
RISE: A demographic thesis The second fund, RISE, carries a more assertive conviction. Its equity strategy in emerging markets is based on a principle of geographic selection grounded in demographic dynamics and structural growth, with the explicit exclusion of three heavyweights from the classic emerging universe: China, Taiwan, and South Korea.
RISE targets dynamic economies like India, Brazil, and South Africa, countries with expanding workforces and high GDP growth,” said Young Jae Lee, senior portfolio manager, emerging market equities at Pictet Asset Management, on BusinessWire.
[Context: Pictet Asset Management launched two new actively managed ETFs in the United States.] [Fact Check: Pictet manages over $20 billion in emerging markets and employs specialized professionals.]
