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.
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.
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.
SmartCity - from the pioneer in 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.
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