Analysis of the Pictet Fund – Multi Asset Global Opportunities
20 DEC, 2024
By Andrea Sepúlveda from LatamSelf
The fund Pictet - Multi Asset Global Opportunities is a fund that, as the name suggests, seeks opportunities in various asset classes globally. The strategy invests in a wide range of instruments, such as sovereign, corporate and/or convertible bonds, monetary instruments, stocks and/or deposits, covering any sector, currency and credit quality globally.
Characteristics of the Pictet-Multi Asset Global Opportunities fund
The fund, domiciled in Luxembourg, was launched in August 2013, thus having over 10 years of history. The main objective is to offer investors a diversification of opportunities in various asset classes, both fixed and variable income, through a single actively managed instrument.
- Investment strategy: The management team aims to take advantage of the market context by maintaining a flexible approach, i.e. being able to quickly move between asset classes and assigning positions based on their specialist analysis. In addition, ESG (environmental, social and governance) factors represent a central element of the strategy, increasing (or reducing) the weight of securities with lower (or higher) sustainability risks, in line with good governance practices. Activities that have a negative impact on society or the environment are also avoided.
- Benchmark index: the strategy uses the Euro Short Term Rate (€STR) index as a benchmark, although the fund's management is not bound to it. The volatility target is around 5% per annum over a 3-5 year horizon.
- Investment team: The investment team is composed of Andrea Delitala, Head of Multi Asset Euro at Pictet, with over 30 years of experience, who started working for the company in 2007. Alongside him is Marco Piersimoni, Senior Investment Manager with over 20 years of experience, who joined Pictet in 2008
- Assets: at the end of November 2024, the Pictet - Multi Asset Global Opportunities strategy had over 5.3 billion euros in assets under management.
- Management company: Pictet, is one of the leading asset managers in Europe, with investments in equity, bond, alternative and multi-asset products. It provides services globally, collaborating with some of the world's largest financial institutions. In numerical terms, Pictet manages over 280 billion dollars in assets under management (AUM), has 18 offices worldwide and over 1,100 employees, of which 400 are investment professionals.
Evolution of the Pictet - Multi Asset Global Opportunities fund
One of the advantages of analyzing a fund with a long history is the ability to compare it with the benchmark over longer periods, assessing the consistency of the strategy and long-term results.
Using external sources to evaluate the fund's risk metrics, it emerges that the data confirms what is reported in the return tables. Good alpha results over 3 and 5 years show that the team has managed to achieve better performance than the market with a similar or even lower level of risk.
As indicated by the management company, the fund seeks to reduce portfolio risk through diversification, leveraging uncorrelated alpha sources and a flexible asset allocation.
Conclusion
Advantages
- Institutional size and solid track record.
- Proven alpha in a multi-asset strategy that integrates sustainability criteria.
- Support of a management house like Pictet.
Disadvantages
- The global and multi-asset approach is more suitable for wealth management rather than institutional investors, who often prefer more specific regional investments.
