• Portfolio strategy
  • Discretionary mandates
  • Advisory mandates

Portfolio strategy

Once we have understood your objectives, Pictet’s investment specialists will help you translate them into an investment strategy and propose a strategic asset allocation to achieve your goals.

Objectives and investment strategy

Our investment specialists will consider a range of factors in working with you to formulate your investment strategy. These include your objectives, the amount of your wealth, your attitude to risk and your cash needs.

A part of your wealth must be readily available to maintain your lifestyle now – this financing capital should be deployed largely in low-risk investments. Another part should be reserve capital for later in life, using medium-risk investments to increase its value over the longer term. Any surplus capital can be invested more flexibly in higher-risk investments that may produce higher returns, perhaps to pass on to the next generation.

 

Investment policy and asset allocation

When we have agreed your investment strategy with you, we can devise an Investment Policy Statement (IPS) which sets out your long-term risk/return objectives and how your investment portfolios will be managed, supervised and adapted as circumstances change. Then we will advise you on the most appropriate strategic asset allocation, setting out how you should divide your wealth between various asset classes to meet your changing needs in the short and medium term, while ensuring that you achieve lasting financial independence.

 

Portfolio structure and your involvement

Pictet has discretionary mandates which leave all the decisions to our portfolio managers, and advisory mandates which offer access to the same investment options but leave it to clients to make the decisions.

Investment specialists use our mandates and products to design the optimal portfolio structure that will meet your preferences. For smaller amounts of wealth, you may prefer a discretionary mandate with an appropriate risk profile; if you want to make your own decisions, you may prefer an advisory mandate. For larger amounts of wealth, our investment specialists are likely to recommend more complex portfolio structures, which may combine both discretionary and advisory mandates and directly involve experts in relevant asset classes or regions.

 

Private equity, hedge funds and real estate

In an era of low returns, alternative assets can play a vital role in portfolio construction. As a leading provider of alternative investments, Pictet offers you access to private equity, hedge funds and real estate. We have more than 20 years’ experience offering clients purpose-built portfolios and off-the-shelf solutions.

 

Access to Pictet investment specialists

If your investment strategy produces a simple portfolio structure, the banker who introduced you to Pictet will continue to be your point of contact, but you will always have access to all of our specialists as necessary. They will review your portfolios, reassess your mandates from time to time and pass on advice to advisory mandate clients. For more complex portfolios, specialists will set up or advise on investment governance, and play a role in monitoring investments and investment managers with other Pictet experts.

Discretionary mandates

You can delegate the investment of your wealth – in whole or part – to Pictet investment experts who will select investments in line with your strategic asset allocation to achieve your objectives.

Discretionary mandates can be invested in multi-asset classic portfolios according to specific investment profiles, multi-asset portfolios with a more flexible approach or single-asset class portfolios for specific purposes. We also offer two types of discretionary mandate for larger fortunes. Clients who choose discretionary mandates will receive regular reports that allow them to monitor results and – if necessary – question performance. This choice demands the least intervention by clients, leaving most of the work to Pictet’s experts.

One important decision made by our investment experts with multi-asset portfolios is the strategic asset allocation which translates your long-term risk/return objectives into a diversified portfolio that aims to achieve them. However, returns in many previously high-performing asset classes have diminished over recent years, and this is expected to continue for another ten years.

Because of this, Pictet has expanded the set of investment opportunities considered when drawing up a strategic asset allocation to have the option of including private assets in portfolios, which can boost returns for investors with appropriate risk profiles.

Multi-asset classic portfolios

Diversified and actively managed, multi-asset classic portfolios are available with different profiles, reference currencies and geographical focuses. Built on a truly open architecture, they aim to capitalise on market trends while optimising risk-adjusted returns. Tactical adjustments help to limit effects of volatility and aim at improving overall performance.

 

Multi-asset flexible portfolios

These are diversified portfolios across all available asset classes, including traditional asset classes such as equities, bonds and hedge funds, but also derivatives, less liquid credit instruments and commodities. They are called flexible portfolios because their asset allocation is not constrained by a benchmark, and can vary significantly as market conditions change. Flexible portfolio objectives are stated in terms of absolute targets over an economic cycle.

 

Single-asset class portfolios

These are portfolios for single-asset classes such as equities or bonds, which are invested directly in securities rather than through funds and frequently used to complement multi-asset portfolios. We also have a range of thematic portfolios such as clean energy, robotics and digital technology.

 

Global Fiduciary Management (GFM)

Global Fiduciary Management is a multi-asset, multi-manager platform enabling large wealth owners to oversee and manage their total wealth in a comprehensive manner, with the flexibility to choose the level of their involvement in the investment strategy and process. Clients can outsource the Chief Investment Officer function and implementation capabilities to our GFM platform. The right expertise and team of specialists from the entire Pictet Group is built around each client’s internal capabilities and structure.

Through frequent and regular communication and guidance, a senior and dedicated investment manager ensures that clients understand and are comfortable with the investment strategy and decisions being taken.

The benefits of GFM include a tailor-made investment strategy as practised by top institutional investors, and access to a worldwide network of best-in-class asset managers in both traditional and alternative assets.

 

Pictet Investment Office (PIO)

Pictet Investment Office manages global multi-asset discretionary mandates for large entrepreneurial wealth owners looking for superior returns, who have limited liquidity needs and are willing to accept potentially large drawdowns. For these investors, we design and implement investment strategies which include alternative, illiquid and unconventional asset classes. Our investment philosophy aims to compound wealth over time by investing in value-creation companies and managers.

Our tailor-made strategic asset allocation is heavily weighted towards equity and equity-like investments to capture the risk premiums available to long-term investors. Our time-tested and disciplined fundamental investment process is non-benchmark driven and without constraints. We build concentrated portfolios with high conviction levels, as owners of businesses rather than traders of financial assets.

The global multi-asset mandate is managed by a dedicated team of analysts and portfolio managers who average more than 20 years of experience. An unwavering investment philosophy has been key to delivering a 25-year+ record which compares extremely favourably with US endowment funds with whom we share the same investment philosophy and long-term perspective.

 

Alternative assets

Alternative assets such as private equity, hedge funds and real estate are an increasingly popular part of investment portfolios, because they may offer higher returns if you are prepared to invest for longer periods (the illiquidity premium), as well as diversification benefits.

Pictet Alternative Advisors creates portfolios allocating clients’ assets to leading private equity, hedge funds and real estate investment managers operating in various regions, while Pictet Asset Management directly manages a wide range of hedge fund strategies.

Advisory mandates

In our role as trusted Wealth Management Partner, our core activity consists in accompanying you throughout the lifecycle of the investment process, leaving you the flexibility to define your degree of involvement.

While you decide the scope of advice, interaction and monitoring, our solutions shelf has been designed to ensure that you understand and are comfortable with the investment strategy and decisions discussed.

Pictet advisory mandates:

  • Access mandate: The entry point to Pictet’s best ideas

  • Advanced mandate: Customised advice and dedicated investment servicing

  • Direct mandate: Designed for investors as the pulse of the market

  • Expert mandate: The premium service for single-asset class strategy

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