Pictet Asset Management has been investing in Swiss Equities since 1998 and offers clients a range of solutions.
Written by
Lorenz Reinhard
Head of Swiss Equities
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Switzerland as a business location
As a small open economy, Switzerland is greatly affected by global cyclical developments. Nonetheless, in the international comparison, Swiss Equities delivered superior performance. This is especially true when you consider the currency trends in recent years, as shown in the graph below.
How the Swiss equity market compares internationally
Source: Pictet Asset Management, Bloomberg, as of 29.09.2017
There are many good reasons to invest in the Swiss equity market:
The World Economic Forum ranked Switzerland top of its Global Competitiveness Index (GCI) for the eighth year running.1
Swiss listed companies are global players and top world rankings in terms of their cash flow return on investment (CFROI).2
Political stability, excellent infrastructure, an efficient job market, a focus on high added value products and services driven by research & development, attractive corporate tax and very low interest rates.
Massive differences persist between companies, depending on their shareholder structure or corporate governance.
Moreover, the Swiss equity market’s dividend yield is highly attractive in international comparison, especially against the current backdrop of negative interest rates.
Corporate Switzerland has also improved its dividend policy markedly. Since 2000, the average pay-out ratio within the SPI has improved steadily — and is now over 50%.
The new dividend paradigm is creating opportunities
In the following video, Switzerland’s leading CFOs explain their companies’ dividend policies.
Source: Pictet Asset Management
Pictet Asset Management offers a range of options for active investment in the Swiss equity market. You will find further information on our investment strategy by clicking here.
We place emphasis on companies that are of above-average quality and have outstanding management, sustainable growth, positive cash flow and extremely solid balance sheets.
–
Lorenz Reinhard, Head of Swiss Equities
Stock selection focuses on stable earnings capacity, with the ability to distribute dividends or run an ongoing share buyback programme. The approach to portfolio construction is characterised by diversified investment themes and an appropriate level of liquidity. Stocks are selected using a process driven by a company’s CFROI.
As part of the stock selection process, the investment team focuses on companies with above-average cash flow returns and companies that are able to re-invest them and achieve compelling returns.
Our investment solutions: Our strategies include a Large Cap Fund (for institutional and private investors), a Small and Mid-Cap Fund, a 130/30 Fund, along with a Long/Short Strategy.
Investment process: A proven stock selection process based on frequent, direct contact with the leaders of Swiss listed companies.
Our investment team: Longstanding and stable team that integrates its local expertise with that of Pictet Asset Management’s global research network.
Our track record: Positive risk-adjusted, long-term results for the Swiss equity market.
About the company: An independent Group with clear strategic priorities, with no shareholder pressure
Lorenz Reinhard joined Pictet Asset Management in 2003 as a Senior Investment Manager and was appointed Head of Swiss Equities in 2008. Before joining Pictet, he worked at Julius Baer, first as a Swiss equity sell-side analyst and subsequently as an investment manager, in which role he ran their small-mid cap fund and later also their blue-chip fund. Previously, Lorenz worked as a Swiss equity analyst at Zurcher Kantonalbank. Lorenz holds a CFPI diploma.
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Important legal information
This marketing material is issued by Pictet Asset Management (Europe) S.A.. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The latest version of the fund‘s prospectus, Pre-Contractual Template (PCT) when applicable, Key Information Document (KID), annual and semi-annual reports must be read before investing. They are available free of charge in English on www.assetmanagement.pictet or in paper copy at Pictet Asset Management (Europe) S.A., 6B, rue du Fort Niedergruenewald, L-2226 Luxembourg, or at the office of the fund local agent, distributor or centralizing agent if any.
The KID is also available in the local language of each country where the compartment is registered. The prospectus, the PCT when applicable, and the annual and semi-annual reports may also be available in other languages, please refer to the website for other available languages. Only the latest version of these documents may be relied upon as the basis for investment decisions.
The summary of investor rights (in English and in the different languages of our website) is available here and at www.assetmanagement.pictet under the heading "Resources", at the bottom of the page.
The list of countries where the fund is registered can be obtained at all times from Pictet Asset Management (Europe) S.A., which may decide to terminate the arrangements made for the marketing of the fund or compartments of the fund in any given country.
The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments or services.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. The management company has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.
The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested.
The investment guidelines are internal guidelines which are subject to change at any time and without any notice within the limits of the fund's prospectus.
The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security. Effective allocations are subject to change and may have changed since the date of the marketing material.
Past performance is not a guarantee or a reliable indicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares.
Any index data referenced herein remains the property of the Data Vendor. Data Vendor Disclaimers are available on assetmanagement.pictet in the “Resources” section of the footer.
This document is a marketing communication issued by Pictet Asset Management and is not in scope for any MiFID II/MiFIR requirements specifically related to investment research. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any products or services offered or distributed by Pictet Asset Management.
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