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Thematic investing
Smartcity: investing in the future
Invest in tomorrow's cities
September 2018
Our latest thematic fund aims to capture the strong growth potential of companies finding smarter solutions to the urbanisation challenge.
What is Pictet-SmartCity?
Pictet-SmartCity is a new global thematic equity fund that aims to harness the investment potential of urbanisation, which is gathering pace worldwide. It aims to deliver long-term capital growth by investing in companies around that are helping develop the sustainable, better-connected cities of tomorrow.
These firms will be active mainly, but not exclusively, in the following areas: mobility and transportation, infrastructure, real estate, sustainable resources management, as well as enabling technologies and services supporting the development of smart and sustainable cities.
Cities are making huge changes to deal with growing populations and reduce environmental impact. We believe this is creating great opportunities for investors.
Why invest in the cities of the future?
The world is moving to cities. Today, 55 per cent of the world’s population lives in urban areas and this is expected to reach 70 per cent by 2050.1 Cities are engines of growth, accounting for nearly 80 per cent of global GDP, but are also responsible for 70 per cent of global greenhouse gases and often have poor air quality.2
As their populations swell, cities will have to find smarter solutions to meet the needs of their residents and improve their quality of life.
As their populations swell, cities will have to find smarter solutions to meet the needs of their residents and improve their quality of life.
SmartCity - from the pioneer in thematic investing
What are the solutions to the urbanisation challenge?
Innovative companies are devising new ideas and technologies to change the way cities are managed, reduce pollution, use resources more efficiently or improve healthcare and social structures. We believe this represents a huge growth opportunity for the companies helping to build, run and manage cities in a better and more sustainable way.
Why invest in Pictet-SmartCity?
1. Long-term growth potential
We believe the SmartCity theme represents a large investment opportunity, with an investment universe currently worth nearly US$4 trillion,3 and will likely continue to grow.
2. Sustainable cities
Cities are a large source of pollution, so their scale and density require them to manage their resources more efficiently. Providing sustainable solutions and services to support long-term urban development planning is becoming a key priority for policymakers in both the developed and developing world.
3. Highly active approach with a smart purity filter
Our pioneering investment approach has been key to our success in thematic equity funds. When building the portfolio, the investment managers use an active investment approach designed specifically for thematic equities. Experts in their chosen fields, our investment professionals carry out their own detailed research – company by company – to find the most promising investment opportunities. In addition, the managers apply a strict purity filter to calculate the percentage of revenues that are generated in urban areas. This helps them select the companies most likely to benefit from this powerful trend.
Why Pictet Asset Management for thematic investing?
SmartCity is the latest theme launched by Pictet Asset Management, a pioneer and leader in thematic strategies. With over 20 years’ experience in thematic investing, we believe that the thematic approach is a strategy for the future.
We first identified its potential during the 1990s, when we were one of the first asset managers to launch a biotechnology product.
This was soon followed by our water strategy, which remains one of the very few dedicated to this unique resource. Over the following years we have built up an extensive thematic range of 14 products which covers such diverse industries as Timber, Robotics and Health, allowing our investors to access any number of enduring investment opportunities presented by megatrends.
A recording of our SmartCity webcast is available here.
Read more
Thematic investing
Urbanisation: the smart investment opportunity
Ivo Weinoehrl, Senior Investment Manager
October 2018
Important legal information
This marketing document is issued by Pictet Asset Management. It is neither directed to, nor intended for distribution or use by any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Only the latest version of the fund’s prospectus, the KIID (Key Investor Information Document), regulations, annual and semi-annual reports may be relied upon as the basis for investment decisions. These documents are available on assetmanagement.pictet.
This document is used for informational purposes only and does not constitute, on Pictet Asset Management part, an offer to buy or sell solicitation or investment advice. It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date. The effective evolution of the economic variables and values of the financial markets could be significantly different from the indications communicated in this document.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.
The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested. Risk factors are listed in the fund’s prospectus and are not intended to be reproduced in full in this document.
Past performance is not a guarantee or a reliable indicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares. This marketing material is not intended to be a substitute for the fund’s full documentation or for any information which investors should obtain from their financial intermediaries acting in relation to their investment in the fund or funds mentioned in this document.
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For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.
For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.
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