Pictet international equities team

The Pictet international equities difference

  • Think and act in the long term—In-depth fundamental analysis to determine intrinsic value with team review and challenging of ideas to look beyond the current market noise.
  • Seeking opportunities off the beaten track—Intelligent use of resources to conduct independent stock-level research and identify good business models.
  • High-conviction fund that doesn’t look like the benchmark—An unconstrained, actively managed, and focused approach that’s expected to lead to a high active share of over 85%.

Get to know the Pictet international equities team

A part of Pictet Asset Management (Pictet), the Pictet International Equities Team is located in London, United Kingdom. Responsible for managing over CAD$3 billion in assets,* the team consists of two portfolio managers who are supported by a dedicated product specialist and eight research analysts. Collectively, the broad team has an average of 17 years of industry experience.

Meet the managers behind the fund

Fabio Paolini photo

Fabio Paolini

Co-Lead, International Equities
Joined Pictet in 1997

Benjamin Beneche photo

Benjamin Beneche

Co-Lead, EAFE Equity
Joined Pictet in 2008

* As of June 30, 2021.


Investment approach

Pictet’s international equities team implements an investment approach focused on 4 drivers:

Cash flow

Normalizing cash flow forces a deep understanding of company and industry dynamics. Cash can’t be manipulated.

Return on capital

Growth must be profitable after taking into account the capital required to generate it.

Growth and reinvestment opportunities

The team seeks businesses with scope to grow by reinvesting the cash that is generated.

Value

The team works to establish what a business is worth, and seeks to pay a lot less for it.


Investment process

Pictet’s international equities team seeks to build a diversified international equity fund through bottom-up fundamental analysis. The focus is on growth in cash flow and value creation with the aim of buying stocks at a price below a conservative estimate of intrinsic value.

The goal is to build a focused portfolio that looks and feels very different from both the market and peer group.

A call-out caption box stating - A focused portfolio that "looks and feels" very different from both the market and peer group.  Graphic showing Pictet International Equity Team’s investment process.  Idea generation From the universe of international stocks available, they begin constructing a core research list. The generally seek off the beaten track opportunities in companies with market capitalizations greater than $800 million. They use independent research and focus on absolute valuation.  Next, to narrow the Universe, they apply stock screens and intelligently apply Pictet’s research resources. They benefit from a free flow of info across experienced teams at Pictet Asset Management. For stock selection, they create a short list. They do this by identifying understandable and predictable business models with an emphasis on company cash flow rather than accounting earnings. They look for companies creating value by identifying reinvestment opportunities and assessing incremental returns on capital. In valuing a company, they look to absolute valuation based on cash metrics that offer a conservative estimate of intrinsic value.  Once the short list is determined, Pictet International Equity Team perform in-depth fundamental analysis involving: Research Focus on Cash Growth, Value Creation and Intrinsic Value followed by Idea discussion and Team review and challenge.  Building the Fund’s portfolio, they take a highly active management style approach. They are benchmark agnostic. Their sector and country exposure are by-products of stock selection and not determined from the top down. They put a significant emphasis on avoiding business risk and limit over reliance on statistical models.  Pictet International Equity Team are mindful of balancing their highest conviction ideas with consideration for the risk and return potential of the stock. Positions are adjusted in response to volatility and liquidity. They seek diversified investment drivers and follow a strict buy and sell discipline.

Funds managed

1 Formerly Manulife International Focused Fund. On October 31, 2018, it was renamed the Manulife EAFE Equity Fund.

Our objective is simple—establish what a company is worth and pay a lot less for it.

—Fabio Paolini, Co-Lead, International Equities

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts as well as the prospectus of the mutual funds before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Manulife Funds and Manulife Corporate Classes are managed by Manulife Investments, a division of Manulife Asset Management Limited. Manulife, Manulife & Stylized M Design, and Stylized M Design are trademarks of The Manufacturers Life Insurance Company, and are used under license.

Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Returns shown are after the MER has been deducted. Performance histories are not indicative of future performance. For information on guarantees, fees and expenses that may apply to segregated funds, please read the Information Folder, Contract and Fund Facts of the segregated funds. The Manufacturers Life Insurance Company (Manulife) is the issuer of insurance contracts containing Manulife segregated funds and the guarantor of any guarantee provisions therein.  Manulife Investment Management is a trade name of The Manufacturers Life Insurance Company.

MP1032449E