Fabien Villeneuve from UNOFI is our Fund Selector of the Month

Fabien Villeneuve is Portfolio Manager at UNOFI since September 2022. He is in charge of asset allocation and fund selection in all asset classes for the multi-management activity. UNOFI manages a diversified range of solutions to meet the various asset situations encountered by notaries' clients. Unofi is based in Paris. Previously he worked as a portfolio manager in the multi-management team at ERES for 5 years. ERES is a leading French financial player in employee profit sharing and retirement savings. He holds a master's degree in asset management, risk control, and compliance from the IAE Caen.

How should investors orient their portfolios in this environment? 

Investors should remain cautious in this volatile market environment. We have many uncertainties regarding interest rates, inflation (which certainly decreases but remains present), economic activity, political risks…

But the good news in this environment is that you have a bond carry. The risk/return remains interesting in investment grade credit as well as high yield with a preference for the top grades in the category. We also like emerging market debt and subordinated financial debt. On equities and in an uncertain context, we like dividend stocks. Gold can also be a good way to diversify in these difficult times.

How is the relationship with your clients in times of market crisis? How do you manage emotions?

Our clients are invested in our funds for the long term and have a diversified allocation. However, they are indeed more worried in times of crisis. So we have a pedagogical duty to explain to them in simple words how the economy and financial markets work. As fund managers, we can step back and look ahead to the future and we know that crises are an inherent part of financial markets.

Give us an example of a fund that you have held for a long time in your portfolios and why

We have long held the Schelcher Flexible Short Duration ESG fund. It is an absolute return bond fund with several performance drivers. It’s a flexible and actively managed bond fund that combines tactical allocations and carry, which allows him to seize market opportunities. Schelcher Prince Gestion has great expertise in fixed-income markets which we particularly like.

What differences do you observe in the way new generations invest? 

The new generation has realized that they need to be interested in their money and investments for their future. They are willing to take more risks, to invest more in equities. They are more likely to explore less traditional investments such as sneakers, watches, or cryptocurrencies.

If you had to define yourself with 3 words, what would it be and why? 

Curious, open-minded, and flexible: In asset allocation, it is necessary to have a global knowledge of the financial markets, the different types of assets, the market trends, and the world economy. Also, market conditions can change rapidly, so an asset allocator needs to be able to adapt to new situations and adjust the asset allocation strategy accordingly.

What are your hobbies?

I am passionate about financial markets and investment, so I also read up on them in my free time. I like sports, cooking, and enology (and wine tasting of course!). And I love to travel and discover new places.