Sandrine Pompidou from Indosuez Wealth Management is our Advisor of the Month

Before joining Indosuez Wealth Management Europe, Sandrine gained extensive experience in private banking, a sector in which she had already exercised significant and varied managerial responsibilities, notably as Head of Business Development & Wealth Planning at BIL, where she was in charge of developing HNWI customers.

Sandrine was previously Deputy Head of Financial Intermediaries at Société Générale Private Banking in Luxembourg.

In 2005, she began her career in Luxembourg as a wealth engineer with PWC. In 2007, Sandrine joined OneLife/Life Insurance and then Arendt, before finally joining the banking sector at ING Private Banking. These different roles have enabled her to develop a solid knowledge of the Luxembourg market and to identify the needs of local clients.

Sandrine graduated from the University René Descartes in 2004 and obtained an Executive MBA from HEC Paris in 2017.

 What made you decide to go into the financial sector? Did you have any other vocations?

Despite a passion for art, my choice of studies focused on business and tax law. Nothing predestined me to work in the financial sector until I went to work in Luxembourg where obviously the financial sector is predominant. After a few years of practicing law, I began to support wealthy people with their wealth structuring needs and I developed a passion for the profession of Wealth Structurer which I practiced in banking. After these first steps in the banking sector, I then diversified into several areas to finally take charge of different activities.

What does a typical workday look like for you? How do you organize your time?

A typical day begins early in the morning. First I listen to the international and local news. Once at the office, I continue to keep up with information, this time relating to financial markets made available by our teams of experts.

A quick review of my agenda for the next 3 days and my to-do list allows me to set priorities as one day is never like another. However, three axes punctuate my weeks: visibility of the bank and its offerings, development of the clients base and internal teamwork to make the magic happen.

Which portfolio allocations are most interesting in the current market situation?

As 2023 draws to a close in a context of falling inflation and normalisation in view of monetary policies, 2024 should offer investors many opportunities. The fact that cash and bonds are once again becoming an asset class offering a positive return, but also potentially higher than inflation, could change investors' long-term allocations for some time to come.

At current yield levels, bonds offer a solid hedge against an economic slowdown or recession that would force central banks to lower their key rates. In alternative asset classes, 2024 should be full of opportunities in the private equity universe, as the downward adjustment in valuations could accelerate during the year and offer particularly attractive entry prices. In this buyer's market, there is a large pool of small and medium-sized enterprises. Distressed credit and structured capital strategies can be favoured to take a position in the private credit market, which should benefit from the current environment. On the private debt market, investors should remain cautious and selective after a strong acceleration in capital raised over the last 18 months amid rising rates.

Which sector do you consider particularly interesting at the moment?

As 2023 proved to be the hottest year on record, I believe renewable energies and sustainability sector could continue to see substantial investments. Exposure to renewable energies should be spread across multiple subsector (from wind to batteries, hydrogen and electrical grids).

By 2070, the price of climate inaction would be twice as high as the necessary investments, put at $75 trillion by 2050, to achieve the transition to carbon neutrality. In this context, the energy transition represents a major opportunity for investors, who are aware of the challenges and long-term benefits, even if risks exist in the shorter term.

How should investors orient their portfolios in the current environment?

In relation to financial markets, in 2024 some relevant issues could be cleared up. Will central banks win the fight against inflation without significantly damaging economic growth? Will the expectations of a change in the interest rate cycle materialize? Will geopolitical tensions stabilize? To the extent that these issues are confirmed positively, market developments should be positive. In terms of long-term investment, this would mean continuing to diversify internationally across different asset classes, monetary, fixed income, equities, real estate and private equity, prioritising the objectives that the investor has in terms of growth and wealth protection. That is, diversify in terms of return/risk.

What characteristics do you think a good financial advisor should have?

From my perspective, listening skills are essential as needs and goals of clients should be well understood. Then comes the banker's ability to be agile in order to adapt to each situation and uniqueness of each client. Proactivity, perseverance, emotional intelligence and stress management are key characteristics to also have.

A good financial advisor is not a sprinter but a marathon runner.

When you have free time, what do you like to do?

My free time is shared between my loved ones and my political and philanthropic obligations because I am also quite involved in local organisations. By looking at what it looks like, I find myself cooking, traveling, gardening, sharing dinners or conversations, learning from different cultures … but always in good company and for a good cause.