Tuesday , February 20 2018
Home / Perspectives Pictet
Perspectives Pictet

Perspectives Pictet

Do not hesitate to contact Pictet for an investment proposal. Please contact Zurich Office, the Geneva Office or one of 26 other offices world-wide.

Articles by Perspectives Pictet

Volatility presents opportunities

14 days ago

[embedded content]
A pick-up in inflation fears contributed to the recent spike in bond yields that spilled over into equities. But while inflation remains a risk, Cesar Perez Ruiz, CIO at Pictet Wealth Management, remains sanguine about the global economy and risk assets and sees volatility as an opportunity for tactical positioning.

Read More »

House View, February 2018

14 days ago

Pictet Wealth Management’s latest positioning across asset classes and investment themes.Asset AllocationCurrent conditions vindicate our continued bullish stance on equities in developed markets and emerging markets (Asia more than Latam). Valuations are high, but they are justified by upwards adjustments to expected earnings growth.But with long-term rates rising, we are expecting a rise in volatility from their low current levels. This should benefit active managers.We remain generally bearish on benchmark US Treasuries and core euro area bonds as yields rise. We are neutral on peripheral euro area bonds, which still have some limited potential for further spread tightening.We believe that quality matters more than ever in credit: now is not the time to take risk. Volatility and

Read More »

After an exceptional year…

23 days ago

Download issue:English /Français /Deutsch /Español /Italiano2017 was an exceptional vintage for risk assets that will be hard to repeat this year. But the environment could become increasingly favourable for active management as challenges rise and volatility increases. This is one of the main messages from Pictet Wealth Management (PWM) analysts and strategists featured in the 2018 special edition of Perspectives.What might some of those challenges be? Global strategist Alexandre Tavazzi details a number of “known unknowns” ranging from geopolitical shocks, to interest rate surprises and liquidity shortages that could upset the apple cart. Although Tavazzi acknowledges that “the biggest shocks to markets often come unexpected directions”, at least investors can guard against the risks we

Read More »

Europe’s renaissance

January 19, 2018

[embedded content]
The euro area is benefitting from a very strong momentum at the start of the year, supporting our view that economic growth will remain broadly stable in 2018 at around 2.3%. Risks to this rosy outlook include political events and a more hawkish ECB, although both look very manageable.

Read More »

House View, January 2018

January 12, 2018

Pictet Wealth Management’s latest positioning across asset classes and invesment themes.Asset AllocationEconomic and earnings growth continue to offer good momentum and the possibility of upside surprises for 2018, so we remain overweight developed market (DM) equities.However, uncertainties over other key aspects of the outlook mean that investors may be unwise to lower their defences. We are keeping tail risk mitigation in portfolios.Emerging market (EM) equities should continue to perform in 2018, but we remain prudent about low earnings momentum in some sectors.Declining intra-index correlations and rising volatility will favour active management and stock-picking in 2018.CommoditiesOur base scenario is still for the equilibrium oil price to remain at around USD55-USD58 for WTI in the

Read More »

Multi-Generational Wealth, Singapore

December 18, 2017

[embedded content]
The fourth edition of the Asian Family Office Master Class took place in Singapore in November 2017, with about 70 guests attending. The focus was around the three pillars of Pictet’s Family Office offer: family governance, investment governance and operational governance. Among the speakers, we had the pleasure of welcoming José Leyte, Chief Executive Officer of one of the biggest European Family Office in terms of asset under management; Kelly Poon, Partner at Atomico, an innovative venture capital firm who invests in disruptive technology companies; and of course, Pictet’s experts from all around the world.

Read More »

Back to normal in markets in 2018

December 14, 2017

[embedded content]
2017 was a remarkable year, with positive returns for a wide array of risk assets. The environment will likely remain supportive as well, but Cesar Perez Ruiz, CIO at Pictet Wealth Management, says he expects more normal market conditions in 2018, with spikes in volatility that offer greater opportunities for active management.

Read More »

House View, December 2017

December 13, 2017

Pictet Wealth Management’s latest positioning in fast-evolving markets.Asset allocationEconomic and earnings growth continue to offer good momentum and the possibility of upside surprises for 2018, so we remain overweight DM equities.However, uncertainties over other key aspects of the outlook mean that investors may be unwise to lower their defences. We are keeping tail risk mitigation in portfolios.EM equities should continue to perform in 2018, but the leadership could shift from growth to value stocks. We continue to see selective opportunities in local-and hard-currency emerging-market debt.Declining intra-index correlations, rising volatility and a continued rise in disruptive M&A will favour active management and stock-picking in 2018.CommoditiesWhile a temporary surge in oil

Read More »

The Call of Asia

November 30, 2017

[embedded content]
Published: Thursday November 30 2017After a period of disappointment, Asian markets have outperformed for the past two years. And with paradigm shifts in businesses and economies, they still hold plenty of opportunities. So argues David Gaud, Chief Investment Officer for Asia at Pictet Wealth Management.

Read More »

Doing nicely

November 24, 2017

Published: 24th November 2017Download issue:English /Français /Deutsch /Español /ItalianoThe upturn in economic growth, benign central banks and improving corporate fundamentals have all ensured that most asset classes are set to finish 2017 in positive territory. But will the good times last?In the view of Pictet Wealth Management’s (PWM) chief investment manager, Cesar Perez Ruiz, next year “currently looks set to be a case of more of the same, at least in the first half”. After nine years, the rally in developed-market equities has certainly matured and valuations are high but “solid fundamentals mean equities still have room to run” in Perez’s view. But there may well be an increase in volatility from this year’s very low levels, especially in view of political and geopolitical

Read More »

House View, November 2017

November 14, 2017

Pictet Wealth Management’s latest positioning in fast-evolving markets.Asset allocationWe remain constructive on equities, which are being underpinned in particular by robust earnings growth.However, there are signs of pressure, especially in forex markets, and occasional spikes in volatility are likely, notably as a result of geopolitical risk. It is worth considering risk mitigation for portfolios put options on equity indices are one way to protect some of the downside.US tax cuts could provide a significant boost to 2018 earnings growth and US equities, but the legislative process is likely to dilute and delay the plans that have been outlined.Low correlations and a pick-up in disruptive M&A mean a good environment for active management.CommoditiesWhile a temporary surge in oil prices

Read More »

What does thinking sustainably really mean?

November 7, 2017

Published: Tuesday November 07 2017Stephen Barber digs into the foundations of sustainable investment.Humans are not, by nature, very sustainable. We collapse and dissolve all too soon.It’s because life is so desperately brief for all of us that a capacity to think and act sustainably is such a daunting task – yet, when achieved, it is also a deeply impressive concept. Housed in fragile bodies, daily subject to short-term appetites, we are sometimes nevertheless capable of identifying with projects that will persist beyond our mortal bodies.One of the best known instances of sustainable thinking emerged in Renaissance Florence, where the ruling Medici family worked to remake their city into the beautiful piece of civic architecture it is today. Crucially, the Medici did not want to build

Read More »

Keeping a jewellery business in the family

November 6, 2017

Published: Monday November 06 2017Two sixth-generation members of the Boghossian family are continuing to develop high-end jewellery with their father and uncle, blending Eastern and Western cultures to create contemporary masterpieces.In the exclusive world of high-end jewellers, the Geneva-based Boghossian House is making waves with stunning pieces of fine and high jewellery that reflect its Armenian heritage. Now run by the fifth and sixth generations of the family, its origins date back 150 years to a city on the Silk Road which linked East and West for many centuries. And its distinctive designs draw inspiration from sophisticated Eastern techniques and apply them to modern Western aesthetics.One such is the firm’s signature ‘The Art of Inlay’ pieces which set one gem within another.

Read More »

Voyages promoting peace and sustainable development

November 3, 2017

Published: Friday November 03 2017Peace Boat, founded by a group of Japanese students over three decades ago, sails around the world, enabling people to engage across borders, fostering dialogue and mutual cooperation – a floating bridge between culturesThe world faces many serious challenges, such as armed conflicts, nuclear threats, poverty, disease and environmental threats – and finding solu­tions often seems to be beyond the reach of individuals and communities. But in 1983, a Japanese student decided to devote himself to working for peace in the Asia-Pacific region by launching a Peace Boat cruise to visit neighbou­ring nations and build grassroots reconciliation and friendship.The first voyage was financed by a group of friends who split the cost of chartering a ship. But today

Read More »

Adios bankers, hello robots?

November 2, 2017

Published: Thursday November 02 2017Olivier Capt says that technology will transform the wealth management industry, leading to higher client engagement, better advice and superior service.Winston Churchill once said: ‘Out of intense complexities, intense simplicities emerge.’ This is exactly what technology is driving today. Intense simplification is at work in all industries and customers now purchase, book, compare and select without relying on intermediaries.Humans are known to be lazy by nature, so why would they prefer executing an action themselves rather than merely asking someone for help, even when cost is not an issue? Because, technology simplifies the undertaking of a complex task, removing the desire to ask someone else to carry it out. Adios complexity, hello

Read More »

Investing in a new sustainable economy

November 1, 2017

Published: Wednesday November 01 2017The former UN climate chief who presided over the negotiations that led to the 2015 Paris agreement on global warming is now urging investors, businesses and policymakers to grab ‘the opportunity of the century’ and invest in an economy-wide transition to a low carbon world.Words like ‘2020’, ‘milestones’ and ‘optimism’ which are scribbled on the windows-cum-whiteboard in Christiana Figueres’ reception room give some clues into the thinking of the former UN climate chief, who presided over the COP21 negotiations that led to the historic 2015 Paris agreement on global warming.The Costa Rican diplomat now leads Mission 2020, a global initiative to urge businesses, investors and policymakers to take bold steps that would radically reduce carbon emissions

Read More »

Passive investing threatens the sustainability of our capital markets

October 31, 2017

Published: Tuesday October 31 2017Renaud de Planta argues that if the majority of investors embrace index funds, they are likely to lead to less efficient markets and weaker corporate governance.To its growing band of proponents, passive investing is looked on as a panacea. Equity tracker funds, we’re told, will rid the finan­cial market of toxic elements and restore it to full health.At first glance, it’s a persuasive argu­ment. Poorly performing and expen­sive active managers have lingered in the system for too long, eroding returns for investors. Yet on deeper reflection, index-tracking products are no miracle remedy. They’re more like antibiotics: valuable when deployed in moderation, but likely to do more harm than good should their use become widespread.If passive equity funds,

Read More »

The art of ambidextrous family enterprise leadership

October 30, 2017

Published: Monday October 30 2017Ivan Lansberg and Wendy Ulaszek say that in addition to running the company, an integral part of a successful family enterprise leader’s job is tending to the needs of the family which owns the businesses, whether or notthey are a family memberDuring a recent meeting with the chief executive of a large family-owned European company, we were discussing his succession plan when he stepped aside to take a call. It was from the daughter of a family shareholder on what we later learned was a tricky health matter.The fact that he took the call was not enti­rely surprising, but we witnessed how genuinely interested and sensitive he was in supporting the daughter through a difficult conversation. The call ended and the CEO – who was not a member of the family –

Read More »

The Asian inside story

October 27, 2017

Published: Friday October 27 2017Kyongchol (Richard) Kim, Managing Director of a Singapore-based single family office (SFO), describes how he came into his current role, what the investment strategy is, and the advice he would give to anyone thinking of setting up a family office.After working for a government-owned finan­cial institution in South Korea, Kim recognised that his country’s bond and equity markets were too small for its fast-growing pension funds and insurance companies. Buoyed by his experience overseas in Australia and the US, he believed that there would be a greater demand for alternative investments and that private equity would be one of their top preferred asset classes.Thus, he created a private equity fund which, bolstered by the momentum of the increased liquidity

Read More »

Tomorrow’s investments

October 26, 2017

Published: Thursday October 26 2017Real Estate expert and founder of Mack Real Estate Group Richard Mack tells Pictet’s Laurent Gabert about his latest venturesAlthough Mack Real Estate is a newcomer, you have been a leading investor in this field for decades. Could you describe your latest venture?In 2013, after selling the real estate private equity business AREA – formerly known as Apollo Real Estate Advisors – our family’s aspiration was for a new firm that would think like a family office and operate like an institutional investment firm. I run Mack Real Estate Group together with my father William and brother Stephen; we do not want to invest or sell unless it is optimal. While pension and insurance companies are obliged to deploy capital at all times, I hope our new venture can

Read More »

How investors can help tackle the world’s biggest problems

October 23, 2017

Published: Monday October 23 2017Mattias Ljungman, co-founder and partner at venture capital firm Atomico, says that whatever Donald Trump may want you to think, he and politicians like him are not the decisive change-makers of our age. 
It is clear that governments cannot solve our greatest problems on their own. Many of the challenges the world faces today have been on the agenda for years. Two of the greatest – climate change and the provision of adequate and manageable healthcare – have been grappled with by governments for decades to varying degrees of dissatisfaction. 
For real progress we need to turn to the entrepreneurs employing cutting-edge technology, who are our best hope for change. I am not referring to Mark Zuckerberg and Bill Gates – although they are doing amazing things

Read More »

Central banks and a sustainable recovery

October 20, 2017

Published: Friday October 20 2017Mervyn King, Governor of the Bank of England between 2003 and 2013, discusses monetary policy since the financial crisis and what comes next with Cesar Perez Ruiz, Chief Investment Officer of Pictet Wealth Management.You once said that central banks need to be ‘as boring as possible’. Is that still the case today?Central banks should respond to developments in the economy as predictably as possible, so the news should not be about debates within a policy committee, who is going to vote for a rise or for a cut, but about the implications for the future of recent data on the economy. And that predictable response of central banks to the data is what I meant by central banks being boring. I think that it is still important.
Do you think Quantitative Easing

Read More »

The Entrepreneurs

October 11, 2017

[embedded content]
Published: Wednesday October 11 2017The 4th Pictet Entrepreneurs Summit held in Geneva in September 2017 brought together an exclusive group of 60 entrepreneurs and investors with a passion for innovation. On day one the focus was on the future of cities, food, agriculture, health and living in a secure world, while on day two the discussions centred on the topics of success, personal wealth and responsibility.

Read More »

House View, October 2017

October 10, 2017

Pictet Wealth Management’s latest positioning in fast-evolving markets.Asset allocationHeadline volatility on equity markets remains low, and given robust economic and earnings growth we are still constructive on equities, particularly the euro area and Japan. We are neutral on the US, selective on Swiss stocks, and underweight the UK.However, there are signs of pressure, notably in forex markets, and headline volatility could rise in the coming months. Moreover, geopolitical risk remains elevated, and we are keeping protection in portfolios against downside risk.Low correlations and a pick-up in disruptive M&A mean a good environment for active management.EM local-currency bonds continue to look tempting, since we remain sceptical about US fiscal stimulus. However, it is important to

Read More »

Nine years on, the bull has some room to run

October 6, 2017

[embedded content]
Published: Friday October 06 2017Christophe Donay, Chief Strategist at Pictet Wealth Management, discusses the synchronised global recovery and chances that equity bull market will continue for a while longer.

Read More »

Deceptive calm, ‘Perspectives’, October-November 2017

October 4, 2017

Published: 4th October 2017Download issue:English /Français /Deutsch /Español /ItalianoThe strong equity gains of early 2017 petered out over the summer, in spite of buoyant earnings, reflecting the market’s belief that remaining upside in equites remains limited, especially in the absence of meaningful tax stimulus in the US. Reflecting relatively modest prospects, Pictet Wealth Management (PWM) recently moved from a positive to a neutral position on a number of sectors in both the US and Europe. And yet, as PWM’s Frank Bigler, Head of Equity and Credit Research, argues in the October-November edition of Perspectives, “while we no longer expect any meaningful breakthrough on this front…we think the market can still be wrong-footed by any kind of political breakthrough.”Christophe Donay,

Read More »

Deceptive calm

September 19, 2017

[embedded content]
Published: Tuesday September 19 2017With the return of solid growth, Cesar Perez Ruiz, Chief Investment Officer at Pictet Wealth Management, discusses how anxiousness about turns in the monetary policy cycle is being expressed in forex rather than equity markets, where volatility remains low.

Read More »

House View, September 2017

September 12, 2017

Pictet Wealth Management’s latest positioning in fast-evolving markets.Asset allocationThere are two ways to hedge geopolitical risk: buying gold or buying protection for portfolios. We prefer the latter, to take advantage of current low volatility and because gold’s gains so far this year reflect the depreciation of the dollar.We remain constructive on DM equities, particularly the euro area and Japan. We are neutral on the US, underweight UK and selective in Swiss equities.Low correlations and a pick-up in disruptive M&A mean a good environment for active management.EM local-currency bonds continue to look tempting. Any short-term pullback could be a chance to buy this asset class.CommoditiesWe see the current equilibrium oil price at USD55/b, and our scenario is for it to remain around

Read More »

Responsible Investing

August 29, 2017

Published: 29th August 2017Download issue:EnglishAt Pictet, Sustainability and Responsibility have always been integral to the philosophy that is engrained across all our activities, helping us to confront the challenges posed by powerful disruptive forces currently reshaping the global economy, which investors cannot afford to ignore. Many companies describe themselves as responsible corporate citizens. No doubt many are. But at Pictet, we believe that a sense of responsibility – towards our clients, our employees and the wider community – lies at the heart of Pictet’s values.Pictet has remained a private partnership ever since its foundation in 1805. In the succeeding 212 years, there have only been 41 partners, and with few exceptions always with overlapping terms. Such longevity and

Read More »

Hacking into the brain to change human behaviour

August 21, 2017

Published: Monday August 21 2017A former hacker has become a neuroscientist whose research into the human brain is revealing how memory works, the meaning of dreams and the role of the subconscious in making decisions and shaping human behaviour.Professor Moran Cerf began his career in the Israeli military intelligence as a professional hacker. After four years in the army, he set up a company to use his skills commercially, working for companies and government organisations to help find vulnerabilities in their computer systems. As is common in Israel, he continued his studies while working, graduating in physics and taking a masters in the philosophy of science.When his business was acquired by a larger company, he decided to continue with his studies and consulted one of his scientific

Read More »