Pictet Funds, the fund distribution company of Swiss private bank Pictet & Cie, has launched the PF (Lux) US Equity Value Selection Fund.

The fund, currently with net assets of USD15m, is managed by Westwood Management, a wholly owned subsidiary of Westwood Holdings Group, a US-based asset management company which manages over USD8bn in US equity value assets.

Investing in large cap stocks, generally with a market cap of USD5bn or more, the fund managers follow an active, bottom-up stock selection approach aimed at identifying high-quality companies whose current stock price is at a significant discount to forecast profitability.

The fund will typically hold between 40 and 60 stocks in its 'best ideas' portfolio with no single position greater than three per cent of the fund's assets. By putting great emphasis on managing risk, the fund managers target companies with an asymmetric return to risk profile.

Laurent Ramsey, chief executive of Pictet Funds, says: "Periodically we fill gaps in our product range by selecting the best managers we can find in a particular area where we do not have proprietary expertise, as part of our strategy to provide clients with the widest possible choice of investments. This fund offers investors the opportunity to diversify US large cap equity exposure through a pure value style approach at a time when the US equity market has the potential for one of the fastest recoveries among the developed nations.'

Susan Byrne (pictured), founder, chairman and chief investment officer of Westwood, adds: 'We believe the groundwork is in place for a US economic recovery and that the US market is therefore undervalued.  At present, we are selecting attractively priced, high quality companies for our portfolios consistent with our value-oriented investment style. However, we remain cognizant of the downside risks to economic stabilization and we are constructing our portfolios with these risks in mind.'

The fund is registered for sale in Luxembourg, Austria, Belgium, Finland, France, Germany, Liechtenstein, the Netherlands, Portugal, Sweden, the UK, and in Singapore. The annual management fee is 1.2 per cent, with no minimum investment.