Pictet’s Premium Brands strategy

What sparked the creation of a strategy centered on Premium Brands?

From its inception, the strategy aimed to capture enduring trends in the consumer sector and deliver significant value to our shareholders. One sector that rapidly emerged as a promising area was the luxury segment. This segment is driven by sustained growth factors. This was particularly evident as the Chinese market began opening to Western companies, offering a unique opportunity to engage with a burgeoning consumer base. In 2005, Chinese customers accounted for less than 5% of the luxury market; today, they represent close to 25%¹.

Since the very beginning, we decided to define our investment theme beyond the traditional luxury sector and include companies renowned for brand excellence across various consumer segments, such as premium hotels, sports, beauty, and food and drinks. These companies often benefit from superior pricing power thanks to their differentiated product offering and operation in sectors with high barriers to entry. They also typically generate high profitability and superior cash flows, while maintaining consistent sales growth. This diversification not only broadened our investment opportunities but also reduced the risk profile of our strategy².

What’s distinctive about the Premium Brands strategy?

Clients trust us to maintain a clear vision and stable, long-term investment style. This consistency has built our reputation for a long-term, fundamental investment philosophy, and allowed us to have meaningful discussions with the senior management of the companies we invest in. For example, early engagement with the management of companies such as Moncler or Brunello Cucinelli at their IPOs allowed us to invest from the outset and build equity value over time. 

What sets the investment team apart?

The success of our Premium Brands strategy is a testament to the dedication and collaboration of my colleagues. Laurent Belloni has been a pivotal partner since the beginning, contributing significantly to our investment process and the selection of attractive companies. Our 20-year collaboration has been marked by trust, enthusiasm, and a shared vision. Recently, we welcomed two additional managers to the team, Aline Reichenbach and David Barros.  We co-manage the strategy together, with each team member having an expertise selecting stocks in specific sectors. 

In addition, our Advisory Board provides invaluable insights on trends and challenges, such as digital disruption and evolving consumer behaviour. Some of our Advisory Board members have been with us since the inception of the strategy. A notable milestone was the recent onboarding of Jean Jacques Guiony, the esteemed CFO of LVMH, in March 2025. His unparalleled expertise will undoubtedly continue to enrich our strategic discussions.

After 20 years, what keeps your interest alive for Premium Brands?

My passion for premium brands remains as strong as ever. In a world of abundant, often low-quality offerings, brand excellence is crucial. More people seek trusted guidance in their consumption, and brand integrity provides that assurance. Working on a theme I deeply believe in is incredibly rewarding. Over the past 20 years, I've encountered inspiring stories about creativity, know-how, and longevity. Many iconic brands, such as Hermes and Ferrari, began as family start-ups and have achieved global recognition and outstanding stock performance. Engaging with company management to understand the key factors behind brand building and the recipe for global appreciation continues to motivate me, with leadership vision and operational discipline at the heart of most success stories. 

As I reflect on our amazing journey, I am proud of what we have achieved and excited about the future prospects of the Premium Brands strategy.