To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular asset class or benchmark. This means every investment decision is high conviction. If we don’t like an investment, it won’t have a place in our portfolio.

Flexibility to adapt to different markets
Change is a constant, especially in financial markets. So an investor needs to be poised to adapt to conditions that change. That is exactly what the FP Pictet Multi Asset Portfolio does. Our management of risk is focused on the big picture asset allocation decisions we take and the active diversification of our portfolio to suit the prevailing conditions. We know one disastrous year destroys several years of growth, so risk levels need to be adjusted appropriately through the cycle.

Transparent and simple portfolio
To keep the management of risk in the portfolio as simple as possible, we choose to implement each investment decision we make in the most straightforward way we can. We build a simple, high-conviction portfolio of our best ideas, using easily understood asset classes or investment securities.

This means that, in our risk analysis, we don’t have to worry about leverage, the downside risk of short positions, or any other opaque investment instruments. And for our investors, our portfolio is transparent and simple – in what we own and how it will perform.

The fund aims to offer equity-like returns but with less risk than investing in equities alone. We define long-term equity-like returns as cash plus 4 per cent per annum, net of fees, over a three- to five-year period. We aim to deliver this with less than 75 per cent of the risk of global equities over the same three- to five-year period*.

To find out more about our straightforward approach to multi asset investing, visit

*The objective of the fund is to provide investors with a positive absolute return in excess of the ICE Libor GBP three-month rate (London Interbank Offered Rate) in pounds sterling over 12-month rolling periods. Capital invested in the fund is at risk and there is no guarantee that the investment objective will be met over any 12-month rolling period or at all. We define long-term equity-like returns as cash plus 4 per cent per annum, net of fees, over a three- to five-year period. Global equity market risk as represented by the MSCI AC World 80 per cent GBP hedged.

This material is for distribution to professional investors only, however it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation. Only the latest version of the fund’s prospectus, simplified prospectus,  regulations, annual and semi-annual reports may be relied upon as the basis for investment decisions. These documents are available from Pictet Asset Management Ltd, Moor House, Level 11, 120 London Wall, London, EC2Y 5ET or, Fund Partners Ltd, Cedar House, 3 Cedar Park, Cobham Road, Wimborne, Dorset BH21 7SB. 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. Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

This document has been issued and approved by Pictet Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.  The Authorised Corporate Director of the FP Pictet Multi Asset Portfolio is Fund Partners Limited which is authorised and regulated by the Financial Conduct Authority.