In an uncertain geopolitical and macroeconomic environment, Iris van de Looij has recently taken charge of investment teams at InsingerGilissen, Quintet’s private bank in the Netherlands. The bank is currently in a slightly defensive mode, but sees scope to add some more risk to its portfolio again.
The firm announced earlier this month that Gerwin Wijnia is leaving the bank. He decided to step aside from the role of investment strategist after 17 years. Iris van de Looij now takes over this role, in addition to her other responsibilities and her position in the bank’s management team. In November last year, Van de Looij was appointed head of investment & client solutions to further develop the investment services of the private bank and parent company Quintet Private Bank.
Based in Luxembourg, she had worked for Quintet for many years until 2016. «It feels very familiar to work again with my former colleagues in Luxembourg, Germany, Belgium and the UK,» Van de Looij told Investment Officer. Quintet’s Chief Investment Officer (CIO) Daniele Antonucci also joined the conversation.
Central investment philosophy
Although InsingerGilissen has its own goals, its investment philosophy and strategy is aligned with Quintet’s. In light of the necessary uncertainties in the world, the private bank is slightly defensively positioned. Thus, the share of equities in the core portfolios is slightly lower than average.
«Equity markets in general are not particularly attractively valued,» Quintet’s Antonucci said. «It’s quite a volatile environment to invest in, which is why portfolio diversification is essential.» Currently, on the equity side, the focus is on ‹low-vol› sectors such as healthcare and consumer staples, while there also remains significant exposure in technology and financials.
Rally not missed
So haven’t Quintet and InsingerGilissen missed much of the rally in equities at the end of 2023? «Not exactly,» said Quintet’s CIO. «Equities are still an important part of our multi-asset portfolio, and we have even expanded this asset class a little more recently. In hindsight, we would have liked to have a slightly larger position in equities, but the way we build our portfolios emphasises a good mix of different asset classes and instruments. For our clients, it is important that we capture the upside in markets, while minimising risk on the downside.»
Antonucci said valuations are particularly high in the United States, both with and without the Magnificent Seven. «We have benefited equally from the recent equity rally, but the underlying idea remains wealth preservation.»
Both Van de Looij and Antonucci said they are pleased with the performance of the core portfolios. «We had a good year, in which we also took part of the strong rally in bond markets, although it was less robust than we expected at the beginning of the year.»
Quintet does not foresee a major recession in the coming year, but it does foresee a slowdown in growth. «Therefore, we remain somewhat more defensively positioned, despite the fact that upcoming interest rate cuts may offer some tailwind for equities. We do look at opportunities to add some more risk back into the portfolios. On the fixed income front, the focus is mainly on government bonds, especially treasuries and high-quality bonds.
New growth phase
Van de Looij noted that the recent collaborations with Moonfare and BlackRock are leading to new investment opportunities at InsingerGilissen. For instance, it has become easier to include more asset classes in the investment policy. For example, shares from the Asia-Pacific region were previously part of the global equity strategy, but are now seen as a separate share class.
Van de Looij: «Being able to use Moonfare and BlackRock’s expertise allows us to take a broader and deeper look at the financial markets. We are already achieving good results with that.»
Van de Looij said InsingerGilissen is well positioned to grow and capture market share this year. «About 20 new private bankers have recently joined us and we are ready to onboard new clients and grow further. It is my responsibility within InsingerGilissen to ensure that a good, and competitive product is ready for existing and new clients.»