Yield expectations are now more modest

Diversification no longer consists in choosing between shares. Moreover, obligations but in accessing private markets and alternative funds, observes Roy Smale de Wellington Management. However,

Wellington Management. Moreover, one of the largest independent investment management companies in the world, is organized as a network of shops which each have their field of specialization and which has wide autonomy in their investment decisions. Furthermore, How does this network structure work and what is its presence on the Swiss market? In addition, Interview with Roy Smale, Global Wealth Management EMEA and APAC manager at Wellington Management.

Wellington Management presents itself as a network of investment stores. Nevertheless, Up to this do they have autonomy in their investment choices?

We operate in an extremely collaborative investment system. Similarly, Although each shop has its own vision or specialization, yield expectations now more modest investors meet regularly to debate and exchange ideas. Therefore, There is, for example, no CIO which presents the vision of the house about market development. Furthermore, We operate in a relatively decentralized way.

“Staff markets have been exceptionally raised in the past 15 years. In addition, This is also the case for bond markets. However, ”

This approach also applies to our customer relationships and investment vehicles. In addition, We seek to offer the right investment content in the right vehicles. For example, while offering tailor -made solutions precisely corresponding to the needs of the customer. For example, We are agnostics as to the form that a strategy. Similarly, the types of investment vehicles can take which are used. It may be both funds and direct investments in securities. The customer’s preference is essential.

So you use both active and passive instruments?

We are an active management company. yield expectations now more modest However, if customers want to integrate passive elements in their portfolio, we can respond to this request.

On what asset classes and strategies do your customers concentrate in 2025? Has there been great changes compared to 2024?

Yes, many things have of course changed in 2025. At the end of 2024. we left a market environment characterized by great stability and a gradual increase in indices, with the exception of short episodes of corrections. On the other hand, this year, the new environment, marked by pricing discussions, has much higher volatility. Our macro investors think that market cycles will oscillate more quickly than before. that inflation will be structurally higher and volatile. Regardless of market development, a major change in recent years is the considerable increase in available data. Another point is that expectations in terms of yields are now more modest.

Do you especially think of the yield expectations now more modest stock markets?

Yes, in particular, because the return on equity markets have been exceptionally raised in the past 15 years.

This is also the case for bond markets. There is a lot of questioning about the role of state obligations as a refuge value in the event of a crisis. in particular American treasury bills. What was considered to be acquired may no longer be in the coming years.

How to adapt to this evolution?

Our customers express the need to work with active and well informed investors in order to improve their diversification. Diversification is no longer seen today as consisting in choosing between shares. obligations, but of accessing private markets and alternative funds. The investment universe made up of private companies is much larger. Many investors do not want to limit themselves to listed companies.

“We have made a strategic choice eleven years ago to develop yield expectations now more modest a strong presence in Switzerland. considering the Swiss financial market as one of the key markets of Wellington in Europe.”

How do investors want to place their money on private markets-via which vehicle?

Our customers in wealth management seek to increase the proportion of private assets in vehicles adapted to their specific needs. Some have very specific preferences, for example in the venture capital, special situations, etc. For many investors. this is a still unexplored territory and there is a great work of training which must be done to ensure a suitability between their risk tolerance and the investment envisaged.

The question of liquidity is important for many investors. Should investments in private markets be more “democratized” at all costs?

If the liquidity is essential, private markets are probably not suitable. Today, there are twice as many private as public companies. Customers must consider private. public markets as yield expectations now more modest an integrated ecosystem, which is why public contracts are also important for many of our investors.

In addition, alternative funds arouse a lot of interest from our customers. This is an area that we have continuously developed organically at Wellington Management. Today. with more than $ 30 billion in direct management in Hedge Funds, Wellington is one of the largest world managers in this sector – a fact that often surprises our customers. We offer long-short funds, as well as solutions in the global multi-Strategies or Global Macro field for example. Thanks to the flexibility of our structure, we are able to quickly adapt to market changes.

What resources have Wellington Management in Switzerland – what are your development projects on the Swiss market?

We have made a strategic choice eleven years ago to develop a strong presence in Switzerland. considering the Swiss financial market as one of the yield expectations now more modest key markets of Wellington in Europe. Our 11 employees in Zurich are the engine of our growth and our success in the last decade. Our office brings together more than ten different nationalities and languages. We have successfully developed our institutional and private customers. For our customers in wealth management in Switzerland. the main axes are our local partnerships – we observe a marked interest in quality actions, basic strategies and, recently, a renewed interest in obligations, particularly for flexible mandates capable of quickly adjusting their duration profile and evolving between bond segments. Investors are looking for yield while favoring active risk management. Finally. a clear request exists for strategies offering a sustainable alpha, decorrelated and without excess of beta – which explains the many requests for our hedge funds.