December 14, 2020
Pictet Asset Management has just launched a new thematic fund focusing on training, care and support as well as leisure. It will invest in companies offering innovative services which, in the complex world we live in, help people achieve their full potential, achieve their ambitions and find more satisfaction in life. “Our new strategy aims to improve the well-being of individuals while seeking to obtain an attractive return for investors”, summarizes Gillian Diesen, Senior Product Specialist within the management team of the ‘Human’ strategy.
What is the idea behind this new thematic fund?
“Demographic and technological changes are fundamentally changing our daily life. People are living longer, having older children, caring for their parents longer, moving to part-time or temporary jobs more often, teleworking regularly, and learning and relaxing online more often. Our new thematic strategy focuses on the services that help us best respond to the social challenges that arise from these profound changes. ”
Your investment universe has three main segments. Can you tell us more?
“We focus on three pillars of personal development: training, care & support as well as leisure. In the ‘training’ part, for example, we invest in companies active in continuing training. Educational technologies – or EdTech – are one of them. For the second pillar, we choose companies that help take care of our family, friends, or even pets. On the ‘leisure’ side, finally, we rely on companies that offer cultural, gastronomic or tourist experiences, are active in entertainment or even promote the search for a partner. The services of these companies increase our independence, our self-confidence and our financial stability. They improve our sense of fulfillment and our physical and mental well-being. ”
What return do you hope to achieve with this new thematic fund?
“The social dimension underlying our fund is unique. All the companies in which we invest support individuals in achieving their social ambitions and in their quest for increased personal satisfaction. ”
“The services provided by the portfolio companies help people live longer, healthier and happier lives. They offer solutions to the main challenges of the complex and dynamic society of the XXIe century. Consumers are willing to pay for these services, often in the form of a subscription; they therefore generate recurring income and predictable turnover. According to our estimates, these three segments are expected to grow annually by 7 to 12% over the coming years. This strong growth creates great opportunities for investors. ”
At the same time, the fund contributes to the United Nations sustainable development goals. What exactly is it?
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“Our new fund has a strong exposure to three of these goals: access to quality education, good health and well-being, and access to decent jobs. What is unique is the importance of the social impact. In most ESG funds, the focus is on environment (E) and governance (G). To my knowledge, we are the first fund to focus so much on the social dimension (S). All the companies in which we invest support individuals in achieving their social ambitions and in their quest for increased personal satisfaction. ”
Which companies are eligible for the fund and which are not? And what are the determining factors to be part of the portfolio?
“Our universe includes a wide range of possibilities. In the ‘training’ segment, for example, we invest in companies that organize private lessons online and in recruitment offices.
In the ‘care & support’ segment, we find nurseries and care centers, of course, but also developers of laboratory equipment and software for veterinarians. In the ‘leisure’ segment, we are looking, among other things, to companies that offer streaming, take-out and dating services.
The turnover of all companies in the portfolio must come from activities related to one of the three segments of our theme. It is essential that we remain 100% focused on our theme when looking for companies with the best potential for our investors. ”
Pictet Asset Management thematic funds are available in Belgium through most (private) banks, portfolio managers, insurers and online banks such as Deutsche Bank, Keytrade and MeDirect. We invite you to contact your bank, your financial advisor or your broker.
The pioneer and specialist in thematic management
For more than 25 years, Pictet Asset Management experts have carefully identified the most promising investment themes, thanks to a detailed analysis of the megatrends which are transforming our world.
Pictet AM offers its expertise in 13 innovative and future-oriented investment themes: robotics, digital, security, health, nutrition, wood, water, clean energy, environment, human, biotechnology, prestige brands and smart cities. Each theme is based on major trends shaping our future: megatrends.