Innovative technology: the trend that may change your investments

June 2018

Marketing Material

Important Note

1. Pictet-Digital (the "Fund") seeks capital growth by investing at least two-thirds of its total assets in equities or any other securities issued by companies using digital technology to offer interactive services and/or products related to interactive services in the communications sector.
2. The Fund's investments are concentrated in companies operating in telecommunications media and technology sectors. The reduction in profitability of these sectors will have adverse impact on the Fund's NAV.
3. 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.
4. Investors should not only base this marketing material alone to make investment decisions.

Over the last 10 years Pictet-Digital has grown by almost 2 times in terms of cumulative return.

Source: Pictet Asset Management and Bloomberg, data as of 30 April 2018. Calendar year return: 2018 YTD: 2.5%; 2017: 37.1%; 2016: 8.3%; 2015: 6.6%; 2014: 4.3%; 2013: 39.6%. NAV-to-NAV in USD, dividends re-invested. 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.
* From 1 July 2008 to 31 December 2008, part year.

Proven defensiveness

During market corrections in 2008 and 2011, the Fund recorded a smaller drop than the median for technology equity funds, demonstrating its resilience.

Comprehensive strategy capturing opportunities from innovative technology

Typical innovative technology funds concentrate on the IT sector but Pictet-Digital has diversified into sectors such as telecommunications services, offering defensive characteristics which helps to fully capture the relevant investment opportunities.

In terms of geographical breakdown, the Fund differs from its US-biased peers. Pictet-Digital allocates 22% of its invesments to Asia, such as China's NetEase, Japan's Nintendo and Korea's Naver (parent company of LINE).

Artificial Intelligence

Artificial Intelligence (AI) has become a strategic domain for technology leaders, impacting many aspects of our lives. The trend of AI adoption has shown little signs of slowing down. Pictet-Digital provides access to seven disruptive trends, including the emerging MedTech theme.

*For reference only, 30 April 2018. Approximate exposure in the portfolio. Portfolio exposure could be above 100%, as some companies may operate in more than one segment.

Robust structural growth

Our daily lives continue to get digitalized by the day. For instance, e-commerce sales now account for around 12% of overall retail sales, and the time we spend on social media such as Facebook has increased hugely. These are only some of the many examples which illustrate that digital technology has become an integral part of our lives. Nonetheless, data reveal that penetration of digital technology remains relatively low in several sectors, which provides structural support to the theme.

*Calculated in USD.
Source: IDC, August 2017; Lending Club 2016; Bloomberg, January 2018; eMarketer, June 2017; McKinsey, December 2016; The Nielson Report, 2016.

Is the technology sector overheating?

Technology stocks have been soaring through 2017, raising concerns of overheating. However, the current P/E ratio is less than half of that in 2000. Meanwhile, fundamentals of current technology leaders have improved significantly. The difference between 2000 and now is that sales volumes of these technology companies have grown by ten or even hundred times compared to a decade ago.

Source: Bloomberg, 3 May 2018. Technology stocks refer to MSCI World Information Technology Index.

Source: Bloomberg, 30 April 2018. Local currencies.

For further information, please click here.

Ten years of Pictet-Digital

The tenth anniversary of the Pictet-Digital fund is a good occasion on which to look at how all kinds of everyday things move into the digital world; both in the past and in the future.

August 2018

Beyond the FAANGs

Think the tech sector's fate is in the hands of a few big name stars? Think again.

Shaniel Ramjee, Supriya Menon

August 2018

_{Source: Pictet Asset Management. All data as of 30 April 2018 unless otherwise stated.}

_{This material is provided strictly for informational purposes only and is not to be used or considered as an offer, an invitation to offer or solicitation to buy, sell or subscribe for any investment products. It is not directed to, or intended for distribution to use by, any person or entity who is a citizen or resident of or located in any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. If in doubt, please seek independent advice. The commentaries should not be regarded by investors as a substitute for the exercise of their own judgment. Certain data in this material has been obtained from sources from third parties. Pictet Asset Management (Hong Kong) Limited does not guarantee the accuracy of such data.}

_{Investment involves risk. Past performance is not indicative of future results. Before making any investment decision to invest in the Fund, investors should read the Hong Kong offering documents and especially the risk factors therein. 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 returns may be denominated in a foreign currency. Consequently, US dollar / HK dollar-based investors may be exposed to fluctuations in the exchange rate of the relevant foreign currency against US dollar / HK dollar. For hedged share classes, only the compartment's consolidation currency is hedged into the share class currency. Foreign exchange exposure, resulting from assets in the portfolio, which are not denominated in the consolidation currency, can remain.}

_{NAVs relating to dates on which shares are not issued or redeemed (“non-trading NAVs”) may be published here. They can only be used for statistical performance measurements and calculations or commission calculations and cannot under any circumstances be used as a basis for subscription or redemption orders.}

_{This material has not been reviewed by the Securities and Futures Commission. The issuer of this material is Pictet Asset Management (Hong Kong) Limited.}

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.

The summary of investor rights (in English and in the different languages of our website) is available here and at www.assetmanagement.pictet under the heading "Resources", at the bottom of the page.

The list of countries where the fund is registered can be obtained at all times from Pictet Asset Management (Europe) S.A., which may decide to terminate the arrangements made for the marketing of the fund or compartments of the fund in any given country.

The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments or services.

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.

Any index data referenced herein remains the property of the Data Vendor. Data Vendor Disclaimers are available on assetmanagement.pictet in the “Resources” section of the footer. This document is a marketing communication issued by Pictet Asset Management and is not in scope for any MiFID II/MiFIR requirements specifically related to investment research. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any products or services offered or distributed by Pictet Asset Management.

Pictet AM has not acquired any rights or license to reproduce the trademarks, logos or images set out in this document except that it holds the rights to use any entity of the Pictet group trademarks. For illustrative purposes only.

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