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May 2018

Pictet-Digital reasons to invest

Share in the potential for growth from the digital revolution.

The Digital investment opportunity

Pictet-Digital invests in some of the world’s most innovative and disruptive listed firms. In our opinion, these companies will profit from the ongoing transition to a digital world and the creation of a new wave of interactive business models.

By 2019, worldwide spending on digital transformation initiatives will reach USD 2.2trn.

IDC 2017 predictions, November 2016

Reasons to invest in Digital

  1. Long term capital appreciation
    The world’s increasing digitalisation together with the convergence of disruptive technologies is opening doors to new business models. Our Digital strategy seeks capital growth by investing in the most disruptive and innovative trends such as the sharing economy, cloud computing and big data.
  2. Investing in an innovative future
    Pictet-Digital invests in growing businesses that fully understand their customers. The USD 5 trillion sector1 includes: e-commerce, online advertising, interactive entertainment, enterprise Software as a Service (SaaS), interactive devices and network operators.
  3. Expert managers with dedicated specialists
    Investors benefit from a global equity portfolio focusing on the investment team’s most compelling investment ideas.

Why now?

Most of the world is yet to get online

Internet penetration rates (%), 2016

Internet penetration

Source: Internet World Stats, June 2016

The digital revolution has created a new wave of interactive businesses offering cheaper, more flexible and convenient solutions and services. E-commerce, online advertising and smartphones are likely to enjoy strong growth over the next five years. There is also huge potential for expansion in the developing world.

Growth in digital is being driven by major structural shifts, and the sector is therefore less affected by the difficulties affecting the wider global economy.

From an investment perspective, we believe this growth pattern should help shares in this sector to outperform the wider stock market, with lower volatility.

Who is it for?

The fund could be suitable for investors who are prepared to invest for the long term and are willing to take a potentially higher risk with their investment.

What are the risks?

  • Past performance is not a guide to future performance.
  • The value and income of an investment can fall as well as rise and you may not get back the amount originally invested.
  • The fund may be invested in emerging markets. Investments in emerging markets can potentially be of higher risk and volatility than those in developed markets.
  • Investments are made in assets that are denominated in foreign currency and are not hedged back to the base currency of the fund. Changes in exchange rates may therefore affect the value of the investments.