Pictet Asset Management has added a new strategy to its USD 42bn actively managed thematic franchise1. The UCITS-compliant Pictet-SmartCity fund aims to capture the strong growth potential of companies finding smarter solutions to the challenges posed by rapidly increasing urbanisation.
Pictet-SmartCity is a global thematic equities strategy that aims to exploit the powerful trends driving urbanisation. Its objective is long-term capital growth by investing in companies around the world that are helping to develop the cities of tomorrow.
These companies 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 better urban environments.
“Cities are having to adapt to manage rapidly growing populations, while seeking to reduce their environmental impact. This is creating abundant investment opportunities for our clients.”
Smart CitiesSolving urban problems using technology
A ‘smart city’ is a city able to collect, aggregate and analyse data in order to solve the challenges it generates (pollution, crime, disease, etc). It also aims to improve the general wellbeing (mental, physical, and economic) of its inhabitants. In a smart city, innovation, technology, economic growth, prosperity and the environmental footprint all play an important role.
The investible universe has three main segments:
- Building the city: Companies involved in the design, planning and construction of tomorrow’s cities, with a focus on efficiency;
- Running the city: Companies that provide essential infrastructure and services for the day-to-day functioning of cities in a sustainable way; and
- Living in the city: Companies that offer services and solutions for 21st century urban living, including housing, working and recreational activities.
The manager of the strategy is Ivo Weinöhrl, CFA, Senior Investment Manager, supported by Lucia Macaccaro, Investment Manager. The team will adopt the same active management process, applied to all Pictet’s thematic strategies, high conviction portfolios, composed of companies with high exposure to the theme.
“Cities are having to adapt to manage rapidly growing populations, while seeking to reduce their environmental impact. This is creating abundant investment opportunities for our clients” said Ivo Weinöhrl. “We believe that the new addition to the thematic franchise will offer an original investment proposition, underpinned by the powerful long-term trends of demographic change, economic growth, sustainability and technological progress.”
1 Franchise range of themes – Biotech, Clean Energy, Digital, Global Environmental Opportunities, Health, Nutrition, Premium Brands, Robotics, Security, SmartCity, Timber and Water.