Unearthing new opportunities in a volatile investment landscape

Finding your edge has never been harder than in the current investment landscape. To find out about the biggest emerging opportunities, we caught up with Sebastien Gentizon, Head of Fund and Manager Research at Pictet Wealth Management, to explore Pictet Wealth Management’s approach, how sustainable investment strategies are evolving, and which strategies are in key focus this year.

Where are the biggest opportunities you see emerging?

Based on our approach and processes, it takes a long time to onboard new strategies. We tend to be contrarian and look at asset classes where others don’t and where others tend to overlook. As a result, more recently, we have been reviewing our coverage in small caps that have been out of favour for a while, as well as Asian equities, especially Chinese equity funds. On the fixed income side, we are completing our shelf with a European IG solution and with our contrarian mindset are looking at CAT bonds.

How are geopolitical shifts influencing or informing your investments?

Our manager selection process is not influenced by geopolitical shifts. We ensure that our investment solutions meet the needs of our internal clients for building their portfolios. We favour a fundamental bottom-up approach, viewing geopolitical uncertainties as opportunities. The managers we select often use this volatility to rebalance their portfolios according to their strongest convictions.

How is the future of sustainable investment evolving? What are the key factors in speeding it up and slowing it down?

In finance, much like in other areas, cycles are inevitable. However, we prioritise a strategic approach over a purely cyclical one. This philosophy extends to our sustainable investment practices. More than five years ago, we developed a dedicated framework for selecting sustainable investments. Each year, we refine and enhance this approach to ensure our strategies align with our sustainability criteria. Our commitment to responsible investing is reflected in our dedicated Responsible Offering, where we carefully select strategies that meet our high standards for sustainability and ethical impact. By doing so, we aim to provide our clients with investment solutions that not only deliver financial returns but also contribute positively to environmental and social outcomes.

What will you be doing more of in 2025? What will you be doing less of in 2025?

We plan to dedicate more time to developing quantitative strategies to enhance our sources of alpha. In parallel, we will focus less on areas where we already have a comprehensive offering, such as global equity funds. Additionally, we are expanding our attention to satellite fixed income asset classes. By exploring these areas, we aim to diversify our portfolio and uncover new opportunities for growth. This strategic shift allows us to better meet the evolving needs of our clients and adapt to changing market dynamics.

What are you most looking forward to discussing at IMpower FundForum this year?

I am eager to engage with my peers to exchange insights on the opportunities and challenges we encounter in our rapidly evolving industry. This dynamic environment fuels our passion for our work, as we navigate the complexities and innovations shaping the future. By collaborating and sharing expertise, we can better anticipate trends, adapt strategies, and drive meaningful progress in our field.

Join Sebastien Gentizon and 1,500+ of the most senior leaders in asset & wealth management at IMpower FundForum >>