After a decade of solid expansion, the global economy now faces inflation pressures and geopolitical shocks that echo the Covid-19 period, the Ukraine conflict, and the latest Middle East tensions. The prudent takeaway remains clear: diversification matters, and understanding the opportunities and risks tied to each investment is essential. A well‑balanced portfolio tends to offer the best escape routes from uncertainty, and given today’s climate, the era of high‑quality investing appears to be entering a new chapter. This quality-focused mindset applies to both fixed income and equities.
Were stocks the biggest surprise of 2023?
Investors assessing the strength of the U.S. economy have encountered mixed signals. It’s no surprise that many are turning to liquidity or substitute assets, particularly Treasury bills, to preserve capital. For instance, a notable portion of client portfolios has shifted toward liquidity‑like instruments with three to six months to maturity. While preserving capital in volatile times makes sense, the question now is whether this stance remains optimal as rates approach their peak. The opportunity cost of staying out of markets during transitional moments can be significant and may hinder long‑term results.
When we think about 2024, in which assets, in which regions, in which themes can we find opportunities?
Every investor brings a unique risk tolerance, goals, and investment horizon. For some, the short term dominates, while others look further ahead. Clarity about goals and a transparent view of risks and opportunities are essential for all. Both fixed income and equities offer compelling prospects, largely thanks to diversification benefits that spread risk across assets, regions, and sectors.
What do you recommend for a conservative investor who wants to preserve capital and adjust risk?
High‑quality fixed income and investable loans present attractive avenues. Multi‑sector fixed income can be particularly effective, adapting swiftly to evolving market conditions to uncover value and reduce risk. Such strategies aim to capture relative value across geographies, sectors, issuers, and bond types, blending bottom‑up and top‑down perspectives. Naturally, investors should acknowledge the risks involved and ensure they have the means to manage them.
Can you give me two investment ideas for savers who want to incorporate the stock market?
Both US and global equities hold appealing opportunities. With rate trajectories still a concern, a quality‑driven growth approach focused on resilient businesses with durable competitive advantages becomes crucial. Investing in companies that perform well under pressure and sustain long‑term growth helps weather volatility.
Impact investing also holds appeal. Allocating to endeavors that mitigate climate change aligns with both social responsibility and long‑term economic logic. For example, disruptions to shipping caused by droughts highlight the financial relevance of sustainable practices.
The quality approach can be applied to both fixed income and equity
Maturity and diversification are important for building solid investment portfolios, but so is having a good financial advisor. What does a financial advisor contribute to estate planning?
An advisor helps tailor decisions to an individual’s financial situation, explaining risks and opportunities in clear terms.
What does an international manager like Vontobel contribute to adding investment funds to a portfolio?
Expertise matters. As a multi‑boutique, active manager, Vontobel offers fixed income, equity, and multi‑asset solutions. The model is organized into six independent boutiques, each pursuing its own investment philosophy.
As a manager, do you take sustainability criteria into account when selecting assets?
Yes. As a global investment firm, Vontobel participates in the sustainable transformation of society and the economy. Governance, investment philosophy, and operations reflect this, with many solutions targeting companies and sectors that contribute to sustainable progress while managing related risks. This approach helps open new opportunities for investors.
What do you do at Vontobel to promote financial education among your customers?
Financial literacy is key for well‑being. The firm engages locally and globally in programs that equip people with essential financial skills. Initiatives include collaborations with sector associations and NGOs to deliver basic education to vocational students, a foundation project to publish and distribute a book on ESG and sustainable investing for children, and a monthly radio program focused on financial education that shares practical insights for individual investors.
Vontobel is headquartered in Zurich, Switzerland and was founded in 1924. It manages roughly €220 billion globally, with about €3,000 million in assets under management in Iberia as of mid‑2023. The Iberian team comprises six members based in Madrid, while the global workforce totals around 2,200. The firm operates as a global asset manager with a multi‑boutique approach, emphasizing capabilities in US equities, impact investing, corporate fixed income, and commodities.