Winners rationale

Facing persistent volatility in 2018, investors increasingly looked beyond short-term market noise in search of long-term structural thematic investments. Accordingly, Pictet Asset Management, widely recognised as a forerunner in thematic investing, continued to garner well-deserved attention — and inflows — for its theme-based strategies.

As at end-September 2018, AUM in the firm’s thematic strategies had increased 25% year-on-year to an impressive US$38 billion, with a substantial portion originating in Asia. In particular, a number of thematic strategies — Pictet – Global Megatrend Selection, Pictet – Security, Pictet – Digital, and Pictet – Robotics — recorded strong inflows as investors sought out transversal opportunities and exposure to the secular growth of megatrends.

Of the firm’s 11 thematic strategies, eight outperformed their relevant peer groups on average in 2018, due, in part, to Pictet Asset Management’s unconstrained stock selection approach. The firm’s thematic strategies hold diversified and underrepresented exposure across the spectrum.

Pictet – Security attracted significant inflows throughout the year, taking its AUM to almost US$5 billion. The fund’s benchmark-agnostic, diversified approach offers greater resilience amid volatile and uncertain market environments — as it did even in 2008.

The firm launched Pictet – SmartCity in 2018, which exploits the powerful trends driving urbanisation, with the asset manager favouring sustainable resource management and the development of smart, sustainable cities.

Pictet Asset Management has also applied ESG factors to its thematic strategies on the grounds that doing so is an ethical and financial imperative as well as an opportunity to help investors potentially achieve better risk-adjusted returns.

Highlighting Pictet Asset Management’s high conviction investment ideas, consistent capital inflows, and high-quality services, Asia’s private banking gatekeepers selected it as the Best Fund Provider – Thematic Equity for the fourth year running.