Our approach to International Equity - EAFE
Pictet AM's International Equity - EAFE investment approach is built on a belief that a company's intrinsic value is driven by its future ability to generate cash returns.
Written by
Benjamin Beneche
Fabio Paolini
Patience, courage, persistence...
Adopting the mind-set of a business owner, rather than just a stockholder, is key to how our International Equity - EAFE investment team operates. It drives discipline into our process, gives us a long-term perspective and informs the questions we ask of potential investments.
Our independent research focuses on identifying a business’ return on investment, its scope for future growth and its cash generation potential.
A key question we also ask ourselves is why our conservative assessment of intrinsic value is not reflected in the market price. The answer to this question is frequently time horizon, which we believe is our single biggest advantage. Many other investors are distracted by short-term ‘noise’, thereby creating opportunities for patient, long-term investors like ourselves.
© Pictet Asset Management 2018
Our objective is simple: establish what a company is worth and pay a lot less for it.
The intrinsic value we identify is far less volatile than stock price and provides the central reference point for our discipline in buying, sizing and selling investments for the portfolio. Consistent application of this approach through market cycles has built a long-term track record we are proud of and should continue to help us deliver superior long-term returns for our clients.
Long-term track record
The Pictet International Equity - EAFE strategy has a track record going back to 1995. As the chart below shows, the strategy has achieved consistent returns versus the performance comparison index since inception.
Pictet International Equity - EAFE Rolling 5-year returns versus MSCI EAFE (NDR) Index
Gross of fees in USD
The strategy is currently managed by Fabio Paolini and Benjamin Beneche who have been working together on it since 2012.
The portfolio managers are supported by a dedicated team of investment analysts and a senior product specialist, Charles Price.
For more information on our strategy, contact your usual Pictet AM representative or click on 'Contacts' at the bottom of this page.
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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