Pictet's Ramjee: We need to be more discerning about where we take risk

Focus on financials

Pictet's Shaniel Ramjee is focusing on financials in the group's Multi Asset Portfolio on the grounds the sector is most likely to benefit from rising bond yields, while avoiding "anything that looks like a bond".

Financials are one of the main themes in the £174m fund's equity component, comprising 10.9% of the portfolio, alongside mining, energy, emerging markets and Japan, with the "very strong position in financials" spanning the US, Europe and Japan. "Japanese financials (2.8%) are one of our strongest ideas as bond yields start to rise and inflation - even in Japan - starts to rise," Ramjee said. "We see a strong reason for Japanese banks, especially the mega banks in Tokyo, to outperform the Japanese market. We like Japan and we are focusing on the financial market." Pictet AM appoint...