Our latest thematic fund aims to capture the strong growth potential of companies finding smarter solutions to the urbanisation challenge.
What is Pictet-SmartCity?
Pictet-SmartCity is a new global thematic equities fund, leveraging on the powerful urbanisation trend. It aims to deliver long-term capital growth by investing in companies around the world that are helping 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 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.”
– Ivo Weinöhrl, Senior Investment Manager
Why invest in the cities of the future?
The world is moving to cities. Today, 55% of the world’s population lives in urban areas and this is expected to reach 70% by 2050. Cities are engines of growth, accounting for nearly 80% of global GDP, but are also responsible for 70% of global greenhouse gases and often have poor air quality.
As their populations swell, cities have to find smarter solutions to meet the needs of their residents and improve their quality of life.
What are the solutions to the urbanisation challenge?
Innovative companies are coming up with 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.
The SmartCity value chain
Source: Pictet Asset Management
Why invest in Pictet-SmartCity?
- Long-term growth potential
We believe the SmartCity theme represents a large investment opportunity, with an investment universe currently worth nearly US$4 trillion, and will likely continue to grow.
- Sustainable cities
While cities are a large source of pollution, their scale and density means they have great potential to use resources more efficiently. Providing sustainable solutions and services to support long-term urban development planning is becoming a key part of the global agenda in both the developed and developing world.
- 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.
Why Pictet Asset Management for 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.
 UN, May 2018
 WorldBank 2018
 Pictet Asset Management, July 2018
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