Uncovering the true guardians of the environment
Investing to protect the planet's natural resources requires a deep understanding of industry's ecologicial footprint. Our environmental strategy has a model for that.
Important Note
• Pictet-Global Environmental Opportunities (the "Fund”) applies a capital growth strategy, by investing principally in equities or equities related securities issued by companies throughout the world (including emerging markets). It will invest mainly in securities issued by companies active throughout the environmental value chain, for example in sectors such as but not limited to agriculture, forestry, clean energy and water.
• The Fund’s investments are concentrated in the environmental sector. The Fund may be adversely affected by or depend heavily on the performance of the securities issued by companies in the environmental value chain. Therefore, this may have an adverse impact on the Fund’s NAV.
• The Fund may have exposure to emerging markets including but not limited to China. Due to the political and economic situations in emerging countries, investment in the Fund presents, among others, greater legal, political, social, economic policy, volatility, currency, exchange, tax, capital repatriation and liquidity risks.
• Investors should not only base on this marketing material alone to make investment decisions
Once a niche activity, environmental investing is now moving firmly into the mainstream. The problem investors face, however, is that there is no universally accepted method for measuring a company’s environmental footprint. Much of the environmental auditing that currently takes place is either too subjective or too narrow in scope: knowing how much carbon a business emits is useful but does not give the complete picture.
This is why the investment managers of our Pictet-Global Environmental Opportunities (GEO) strategy have developed a distinctive process that deploys a scientific, rule-based framework to measure the environmental footprint of each of the 100-plus industries that make up the global economy.
Combining two globally-recognised analytical tools - the Planetary Boundaries framework (PB) and Life Cycle Analysis (LCA) - the model is the lens we use to identify the world's most sustainable industries.
The PB-LCA represents the initial phase of the GEO investment process, and is explained in detail below. Once this audit is complete, our investment managers then undertake company-by-company research to identify firms with products and services that can help reverse environmental degradation.
The Global Environmental Opportunities strategy
- The strategy invests in the shares of companies that are making an active contribution to safeguarding the world’s natural resources.
- Investments are chosen from a broader universe consisting of the world’s 3,500 most environmentally-responsible publicly-held firms – companies that meet the criteria of our proprietary ESG framework.
- The strategy is a concentrated portfolio of 50 to 60 stocks, with investments in firms operating in fields such as pollution control, water supply, renewable energy, waste management and sustainable agriculture.
- With a risk-return profile similar to that of a growth-oriented investment strategy, Pictet AM's Global Environmental Opportunities can be used to complement an equity allocation within a global portfolio.
More on thematic and responsible investing
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A sustainable economy will only become a reality if investors get serious about protecting the environment. That's the message from the UN and the Nobel committee.
December 2018
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Specialist companies usually make for effective innovators and, therefore, attractive investments. That's why they feature prominently in our thematic equity portfolios.
October 2018
Important legal information
This marketing material is issued by Pictet Asset Management (Europe) S.A.. 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. The latest version of the fund‘s prospectus, Pre-Contractual Template (PCT) when applicable, Key Information Document (KID), annual and semi-annual reports must be read before investing. They are available free of charge in English on www.assetmanagement.pictet or in paper copy at Pictet Asset Management (Europe) S.A., 6B, rue du Fort Niedergruenewald, L-2226 Luxembourg, or at the office of the fund local agent, distributor or centralizing agent if any.
The KID is also available in the local language of each country where the compartment is registered. The prospectus, the PCT when applicable, and the annual and semi-annual reports may also be available in other languages, please refer to the website for other available languages. Only the latest version of these documents may be relied upon as the basis for investment decisions.
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Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. The management company 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.
The investment guidelines are internal guidelines which are subject to change at any time and without any notice within the limits of the fund's prospectus. The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security. Effective allocations are subject to change and may have changed since the date of the marketing material.
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.
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