Walter Liebe

You joined Pictet nearly 15 years ago, what was your first impression? How has it influenced you?

At my previous job, there was a strict hierarchical structure that tightly controlled information. Young employees like me were not allowed to talk directly to managing partners. Middle management enforced this unspoken rule, which further restricted communication within the company. When I joined Pictet, I was particularly impressed by the culture. Pictet encourages everyone to shine and develop their own visibility. This approach was refreshing and has since influenced my leadership style.

How did your role evolve when you joined Pictet Asset Management?

I previously worked in private banking, managing client portfolios and conducting fund selection. Pictet was looking for a local product specialist in Frankfurt to connect sales managers with the portfolio management team and who understood the local market and could operate in euros. I knew the competition and the capital markets well enough to discuss investments effectively with clients. I was an "unusual" hire at the time as most foreign asset managers generally only invested in sales managers, considering local investment expertise unnecessary.

The approach proved successful over the past 10 years. Today, my role goes beyond sales, it involves understanding PAM's investment strategies and providing guidance for product development.

Who are your main clients and what does the intermediaries’ business entail?

Our main clients are primarily banks. The intermediaries' business covers a range of clients including banks, independent asset managers, independent financial advisors, and multifamily offices. It involves both distributing products and working with clients on bespoke mandates.

Which client segment is most prominent in Germany?

In Germany, the majority of asset management products such as mutual funds, pension funds, and investment portfolios are sold through banks, accounting for about 80% of all financial product distribution.

The market, however, is quite divided among various banks, meaning no single entity has a majority control. For example, Deutsche Bank, one of the country's largest banks, holds a modest 8% of the market. In contrast, smaller regional savings banks collectively control half of the market, and cooperative banks, which are owned and operated by their members to benefit those members, hold between 20% and 25%. The market is therefore much more fragmented than in other European countries like Spain or France, where big banks dominate.

How do you and your team address this fragmented market?

Our sales team consists of eight individuals, split across three regions. Sales managers are responsible for different parts of the country. This set-up helps us effectively manage the vast number of financial institutions across major cities and smaller towns. It requires careful planning and frequent travel to maintain strong relationships with key clients. Since October of last year, we have a sales graduate in the team, bringing in a new generation of client-facing people.

How do you balance in-person and virtual interactions with clients?

In-person visits to each client are not always feasible, especially on the retail front. We use online platforms to reach more people through meetings, webinars, and content distribution in collaboration with PAM's central marketing team.

What strategies have fueled PAM's growth in Germany?

Thematic funds have helped us nearly triple our assets under management since 2016. We capitalized on Pictet's reputation for innovation to attract investments, also during market downturns. Recently, we've seen positive developments in Japanese equities, Quest, and money market funds which had been quiet for years. As a side remark, I should also say that clients also greatly value Pictet's commitment to Germany, a commitment further illustrated by the recent move of our European headquarters to Frankfurt am Main.

Looking ahead, what challenges do you anticipate for your team?

We compete with local asset managers and we face challenges in attracting and retaining talent, especially young professionals who are often drawn to FinTech and startups. The three biggest players (DWS, Deka, and Union Investment) have a market share of 62%. Pictet is naturally less known in Germany than in Switzerland, so we need to highlight our stable and entrepreneurial environment to attract new talent. I personally had the chance to grow and expand my responsibilities over the past 14 years. It's what motivated me to stay at Pictet.

What about business opportunities?

Germany has been slower than Anglo-Saxon markets to adopt capital market products such as stocks, bonds, and mutual funds. Interest in these options grew when interest rates fell, making such investments more appealing. Despite substantial wealth in real estate, cash, and life insurance, there is potential for growth through better financial education, though progress will be gradual.

How are client dynamics changing in Germany?

There is an increasing professionalization on the client side. We now have two investment advisors, Simon Frank, who succeeded me in my previous role, and Lara Lorenz. This investment in expertise helps us better meet the evolving needs of our clients and maintain our competitive edge.

Could you share a book that has had a significant impact on you?

One of the most influential books I have read is "The Ascent of Money" by Niall Ferguson. It opened my eyes to the underlying economic forces that drive geopolitical and societal changes and to how financial systems have shaped world history and current events.

What personal interests or hobbies do you pursue outside of work?

I have a deep appreciation for the culture and natural beauty of northern Spain, an area that remains relatively untouched by mainstream tourism. This region offers a unique blend of culinary delights and scenic landscapes that are distinct from the more commonly visited parts of Spain. And, what is very pleasant, there are very few German tourists in the region.