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How we turn megatrends into investment ideas

We explain how our team of experts create investment strategies from megatrends.

Based on our research, we have developed 12 single-themed and two multi-themed equity strategies that aim to pick out the companies best positioned to benefit from megatrends.

Where megatrends connect
Clean Energy example
Megatrends_clean energy exemple.svg

Source: Pictet Asset Management

It is our belief that these companies, which will address the new demands of the changing world economy through innovative products and services, should benefit from unrivalled growth potential. In turn, investors in these companies are likely to be the winners of tomorrow’s world.

Therefore, in order to take advantage of the opportunities presented by megatrends, we have taken a highly disciplined approach that helps us distinguish a truly enduring investment opportunity from a temporary fad. Having identified our megatrends, with the help of advisers and industry experts, we develop our thematic strategies to be positioned in industries and sectors where several megatrends meet.

Combining megatrends into an investment strategy

Constructing a focused thematic strategy at the intersection of a number of megatrends, as the graphic above shows for our Clean Energy strategy, allows our actively managed thematic strategies to seek a compelling risk-adjusted return over the long run. The more megatrends at play in any area, and the stronger their influence, the more compelling the investment theme becomes.

Our thematic strategies

To maximise the potential pool for investment opportunities, we adopt a global approach that both ignores the constraints of benchmarks and seek to capitalise on the secular trends shaping our world.

What’s more, our strategies typically focus on companies providing solutions to global challenges and aim to deliver better outcomes not just for investors, but for everyone.

Each of our thematic strategies is managed by a team of dedicated specialist investment managers. In order to make sure our ideas are as robust as possible, each strategy also benefits from a dedicated advisory board made up of eminent scientists, business leaders and academics.

This enables us to test our views against those of experts in their fields, providing us with deeper understanding of the structural trends transforming our world.