Pixabay CC0 Public DomainFoto: Si Janko Ferlic. Foto: Si Janko Ferlic
The analysis from Pictet Asset Management’s research partner CIFS sheds light on the structural trends transforming the world, helping us build better investment portfolios.
Pictet Asset Management has been working with the Copenhagen Institute for Futures Studies (CIFS) for over a decade to establish a deeper understanding of megatrends – the powerful secular forces that are changing the environment, society, politics, technology and the economy. CIFS is a leading global think tank and consultancy. CIFS uses a wide range of research methods, developed over the last 40 years, which include megatrend analysis, scenario planning, risk management, innovation initiatives and strategy development.
Through our partnership with CIFS, we have devised an investment framework that incorporates CIFS’ 14 megatrends. The framework – which includes trends such as Demographic Development, the Network Economy, Focus on Health, Sustainability and Technology Development – enhances our thematic equity capabilities and informs the construction and development of our thematic equities strategies such as Water, Robotics or SmartCity.
As CIFS’ partner, Pictet Asset Management has access to research into areas not normally covered by the investment analyst community such as changes in societal attitudes and beliefs, the impact this has on the environment and the business sector, and the acceleration of technological development. We are proud to be associated with CIFS and would like to share some of their research with you.
For more information, please download the reports here, the reports are only available in English.
Important notes
This marketing material is issued by Pictet Asset Management (Europe) S.A.. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Only the latest version of the fund’s prospectus, KIID (Key Investor Information Document), regulations, annual and semi-annual reports may be relied upon as the basis for investment decisions. These documents are available on assetmanagement.pictet or at Pictet Asset Management (Europe) S.A., 15, avenue J. F. Kennedy, L-1855 Luxembourg.
The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments or services.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management (Europe) S.A. has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.
The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested.
Past performance is not a guarantee or a reliable indicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares. This marketing material is not intended to be a substitute for the fund’s full documentation or any information which investors should obtain from their financial intermediaries acting in relation to their investment in the fund or funds mentioned in this document.
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This document is a marketing communication issued by Pictet Asset Management and is not in scope for any MiFID II/MiFIR requirements specifically related to investment research. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any products or services offered or distributed by Pictet Asset Management.
Wikimedia Commons. XP y Ashmore anuncian un acuerdo para ofrecer a inversores brasileños estrategias de mercados emergentes
XP Inc., a leading, technology-driven financial services platform, and Ashmore Group PLC, a specialist asset manager with over twenty-five years’ experience investing in Emerging Markets, announce a partnership to offer Brazilian investors easy access to actively-managed Emerging Markets equity and credit strategies.
XP recently launched three local feeder funds for qualified individual and institutional investors that invest directly into three Ashmore strategies: Ashmore Emerging Markets Debt Advisory FIC FIM IE CP (BRL hedged), Ashmore Emerging Markets Equity Dólar Advisory FIC FIA IE (unhedged-US) andAshmore Emerging Markets Equity Advisory FIC FIA IE (BRL hedged).
“Emerging Markets will continue to be the dominant drivers of global economic growth with highly attractive returns, particularly when set against the backdrop of persistently low interest rates in the developed world. Ashmore’s strategies, through the XP platform, provide Brazilian investors with the opportunity to diversify their portfolios and to enhance potential investment returns”, stated both companies in a shared statement.
Leon Goldberg, partner at XP said: “Through this partnership with Ashmore, XP is pleased to offer the first emerging markets strategies on its platform, easily accessible by clients through local funds. The choice of Ashmore, a global top-tier manager, as a partner reinforces our sense of continuous evolution and the search for international partnerships that support the idea of intelligent international portfolio diversification considering the excessively domestic bias still seen in investments in Brazil.”
George Grunebaum, Ashmore’s Head of Distribution for Latin America commented: “Ashmore is honoured to partner with XP to provide Brazilian investors with access to the attractive growth and return opportunities available across the Emerging Markets. Ashmore looks forward to sharing its specialist focus, active management philosophy and deep experience of investing in the Emerging Markets with XP in order to diversify and enhance its clients’ long-term investment returns.”
Ashmore is a specialist asset manager focused on Emerging Markets, with 83.6 billion dollars under management (as at 30 June 2020), and has a proven active management approach that has been tailored over more than two decades to deliver investment performance for clients. XP has outstanding distribution capabilities, coupled with educational engagement that guides investors in intelligent diversification that makes sense in the current domestic and international environment.
Foto cedidaAnnabel Spring, New CEO of Private Banking for HSBC. Annabel Spring, New CEO of Private Banking for HSBC
HSBC has named Annabel Spring as CEO of its recently merged global private banking business, an appointment that takes immediate effect, announced International Investment. Based in London, she will report to Charlie Nunn, CEO of HSBC’s Wealth and Personal Banking (WPB).
Spring joined the corporation in 2019 as group head of customer and products for WPB, where she has been responsible for HSBC’s international personal banking products and its Premier and Jade global services.
Previously, she worked nine years for the Commonwealth Bank of Australia, where her most recent title was group executive for wealth management. Spring also held senior roles at Morgan Stanley, including global head of firm strategy and execution.
HSBC also appointed Taylan Turan as group head of customers, products and strategy for the WPB division. He will remain group head of strategy while also assuming Spring’s former role.
Nunn said that both Spring and Turan will play “an important role” in accelerating the growth of HSBC’s business as they continue to invest in customer offering, technology and products. “As we operate in some of the fastest-growing wealth markets in the world, global private banking, a business with tremendous growth potential, is central to this ambition”, he added.
Pixabay CC0 Public Domain. Santander CIB launches ESG Solutions global team headed by Steffen Kram
Santander Corporate & Investment Banking (Santander CIB) announced in a press release the creation of a dedicated team to boost its offering in the area of Environmental, Social and Governance (ESG) solutions. This new global team will be headed by Steffen Kram. It will partner with product teams across its platform to support clients in their transition towards a more sustainable business model by providing strategic solutions as well as product and financing structures tailored to specific industries, geographies and market sectors.
Santander’s goal is to build a more responsible bank and has made a number of commitments to support this objective including raising over 120 billion euros in green finance between 2019 and 2025. This figure will increase to 220 billion euros in 2030 and includes the Group´s overall contribution to green finance: project finance, syndicated loans, green bonds, capital and export finance, advisory and other products.
In the most recent Dow Jones Sustainability Index Santander achieved the highest ranking among all banks.
José M. Linares, SEVP and Global Head of Santander CIB, said that the creation of this team further reinforces their contribution to the group’s responsible banking commitments to support inclusive and sustainable growth. “We want to back our clients in their ESG transformation journey, helping them define and achieve their global sustainability objectives”, he added.
Kram, new Global Head of ESG Solutions, commented this new team will build on Santander’s global footprint and its commitment to climate and environmental sustainability. “We are a global leader in renewable energy financing and advisory. Our aim is to expand and transfer this expertise into other sectors and technologies crucial in the context of the energy transition”, he pointed out.
Leveraging on a solid track record in renewables and strong product capabilities across its platform, Santander CIB is now evolving towards fully integrated ESG solutions, serving an increasing appetite and demand from corporate and institutional clients. Being a leader in the area of sustainability has been a long-standing ambition for Santander CIB.
U.S. equities scored the best August since 1986 while setting a record high on Tuesday the 18th that made the thirty-three day coronavirus bear market of 2020, a 34% decline from February 19 – March 23, the shortest in market history. The new bull market is being fuelled by record fiscal and monetary stimulus, economic recovery and vaccine hopes and has rallied over 50% from the March low. What remains to be seen is if continued U.S. growth will suffice to end the current recession as one the sharpest and shortest on record as well.
In the fiscal cliff political arena, stimulus negotiations remain deadlocked with the Democrats recent rejection of the current $1.3 trillion Republican proposal. At month end, Evercore ISI’s economist Ed Hyman wrote in ‘Global V-Shaped Recovery’: Looking ahead, there are a number of factors that will lift US growth, eg, the surge in Consumer Net Worth, inventory rebuilding, the surge in vehicle production, the housing boom, reopening’s, and unprecedented global stimulus. A vaccine is likely…The US economy is starting a new expansion…The safest bet now is for a 5-year expansion with a 100% rally in the S&P. He may be right and we hope he is, but there will be some speed bumps along the way.
Following a major two-year review, Fed Chair Powell spoke at Jackson Hole on August 27th detailing the Fed’s conclusions for updating its monetary policy framework by moving to a flexible average inflation targeting (FAIT) approach.Bottom line: keep interest rates low to support a sustainable economic recovery. On August 19th, Barron’s financial writer Andrew Bary highlighted a G.research report on ViacomCBS (VIAC) by analyst John Tinker saying: ViacomCBS looks significantly undervalued based on the success of its streaming strategy and a potential sale of the company…Tinker’s view is that ViacomCBS is valued cheaply at just 6.5 times estimated 2020 earnings before interest, taxes, depreciation, and amortization (EBITDA). That compares with a price of 15 times Ebitda that Walt Disney (DIS) paid for Fox’s (FOXA) content assets in 2019 and a price of 13 times that AT&T (T) paid for Time Warner in 2018. Tinker’s ViacomCBS target equates to about eight times estimated 2021 EBITDA.
Since the March stock market low, value stocks, typically defined as cyclical or economically sensitive companies, have lagged growth stocks. We expect this to change as the economic recovery broadens and the value P/E discount narrows
Looking at the merger arb space, announced deals in July totaled $305 billion, a 60% increase from $189 billion in June, and essentially the same level of activity as July 2019. Sizeable M&A in July included Maxim Integrated’s acquisition by Analog Devices for $20 billion, Noble Energy’s acquisition by Chevron for $13 billion, and National General’s acquisition by Allstate Corp. for $4 billion.
Column by Gabelli Funds, written by Michael Gabelli
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155
Disclaimer:
The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
Foto cedida. Jean Hynes sucederá a Brendan Swords como consejero delegado de Wellington Management
Wellington Management has announced in a press release that Brendan Swords, Chief Executive Officer, will retire from Wellington on 30 June 2021. At that time, Jean Hynes, Managing Partner, will succeed him as CEO.
“One of the most enduring lessons of the Wellington partnership is the notion of stewardship, bringing along the next generation of leaders to allow us to better serve clients,” said Swords.
“I’m excited that Jean Hynes will be my successor. Over the course of her nearly 30 years at the firm, she has demonstrated the vision, optimism, and fortitude to lead Wellington in the years ahead. Her extensive investment and leadership experience align with our mission of delivering investment excellence to our clients”, he added.
Meanwhile, Hynes claimed to be “humbled and honored” to be the next CEO of Wellington Management. “I have had the privilege of learning alongside Brendan for many years, and I am looking forward to building on our long heritage of helping our clients and their beneficiaries around the world achieve their investment goals”, she said.
Hynes joined the firm in 1991 after graduating from Wellesley College with a BA in economics. Throughout her nearly 30 years at the firm, she has researched the pharmaceutical and biotechnology industries, as well as served as a healthcare portfolio manager and leader of this sector’s research team. Since 2014, she has served as one the firm’s three Managing Partners alongside Swords. Hynes is a member of the Investment Committees at Wellesley College and the Winsor School.
Nikolay Markov, Pictet Asset Management. Nikolay Markov, Pictet Asset Management
In recent months, most major emerging market central banks have sharply cut their policy-rates to alleviate the negative economic shock of the pandemic. But is this sustainable and what can we expect going forward?
Estimating equilibrium
According to our proprietary calculations, four major EM central banks have cut their policy rates too aggressively: South Africa, India, Indonesia and, by some margin, Turkey.
Using our proprietary Taylor Rule model, we calculate the fair value for Turkey’s policy rate as 14 per cent, not 8.25 per cent. This is based on the recent upsurge in inflation and domestic currency depreciation. By contrast, the Bank of Russia and Bank of Korea appear to have made appropriate policy responses.
What about the next 12 months?
Fig.2 shows our expectations for policy-rate changes in the year ahead based on our fair value estimates. For most emerging markets the estimated policy-rate fair value is much higher in 2021. This shows that most central banks have no room to cut further and should gradually revert to higher rates as the economic shock of the pandemic subsides.
The most striking cases are in South Korea, South Africa and Russia. While we think these markets have appropriately cut their policy rates during the outbreak, we believe they will need to start raising rates more quickly in 2021 as their economies are expected to rebound at a stronger pace.
For other central banks however, it might be appropriate to keep their monetary policies broadly unchanged in 2021. This is particularly true in Mexico.
Turkey is once again an interesting case as our model calls for significant rate cuts in 2021, in sharp contrast with the policy recommendation for the current quarter.
This is explained by the significant disinflationary process and expected gradual recovery in economic growth which should take place in the coming year if the authorities take the appropriate policy measures to stabilise the lira, thus avoiding a full-blown balance of payments crisis. If this positive scenario materialises, it should be positive for Turkish risky assets in the coming year. Bottom line: it will get worse before it gets better.
Time to look beyond rates?
But if the scope to move EM policy-rates is increasingly limited, what about unconventional monetary tools to stimulate the economies?
The table below shows that only the central banks of South Africa, Indonesia and Poland have opted for an asset purchase program (QE) of government bonds in the secondary market (and in the case of Indonesia possibly covering corporate bonds).
Most of the major EM central banks (China, India, Korea, Turkey, Russia, Brazil and Mexico) do not have a proper QE program yet. Still, those countries have introduced different refinancing facility schemes to provide ample liquidity to the interbank market thus supporting bank credit activity and the real economy.
Close to half of the major EM central banks are expected to ease monetary policy further in the coming months. This is the case in China, Indonesia, Russia, Brazil and Mexico, suggesting that market participants and possibly even the central banks themselves do not think they have actually run out of ammunition. But as suggested by our model, we believe further monetary policy easing will be very challenging in particular for South Africa and Russia, as well as for Turkey in the near term.
For more information on Pictet AM’sFixed Income capabilities, please click here.
Column written by Nikolay Markov, Economist in the Fixed Income department at Pictet Asset Management.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to risks and uncertainties that could cause actual results to differ materially from those presented herein.
Important notes
This material is for distribution to professional investors only. However it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation. Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
This document has been issued in Switzerland by Pictet Asset Management SA and in the rest of the world by Pictet Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.
For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.
Pictet Asset Management Inc. (Pictet AM Inc) is responsible for effecting solicitation in North America to promote the portfolio management services of Pictet Asset Management Limited (Pictet AM Ltd) and Pictet Asset Management SA (Pictet AM SA).
In the USA, Pictet AM Inc. is registered as an SEC Investment Adviser and its activities are conducted in full compliance with the SEC rules applicable to the marketing of affiliate entities as prescribed in the Adviser Act of 1940 ref. 17CFR275.206(4)-3.
August 22 marked Earth Overshoot Day, the point in the calendar when humans used up a year’s worth of the planet’s natural resources. For the rest of 2020, humanity will run up an environmental debt, consuming more than the Earth can naturally replenish in a 12-month period, and drawing down on what will be available for future generations. Just as worrying, we will be producing waste such as carbon dioxide emissions as we do so.
Earth Overshoot Day has been calculated every year since the 1970s by the Global Footprint Network (GFN), a non-profit research group. Over that time, the overshoot has been found to occur earlier each year. This year saw a reversal of that trend. Thanks to coronavirus-induced lockdowns, there has been a drastic shrinkage in humanity’s ecological footprint. GFN estimates that the global carbon footprint, for instance, has fallen nearly 15 per cent from last year, while that for forest products is down by more than 8 per cent. The question now is whether the world can continue along this sustainable trajectory.
The pandemic has alerted us to a number of environmental issues which, left unchecked, could either aggravate the current health crisis or even sow seeds for future virus outbreaks. Take air pollution, which is estimated to kill 7 million people prematurely every year. Researchers have found that air pollution may have exacerbated the impact of the pandemic. Several studies have linked high levels of particulate matter in the air to elevated coronavirus mortality rates.
What is equally clear from the pandemic experience, however, is how quickly air pollution can be reduced. As road and air traffic ground to a halt and factories were shuttered, air quality improved dramatically. In China, concentrations of particulate matter, known as PM2.5, fell by as much as a third in early March from a year earlier.
Although there is a strong possibility that pollution will rise rapidly to pre-crisis levels as lockdowns ease – as is already the case in China – local and national governments are not letting this crisis go to waste.
The city of Milan is introducing one of Europe’s most ambitious schemes to reallocate street space from cars to pedestrians and cyclists. More streets in London and Paris will also become vehicle-free, while New York and Seattle are widening pavements and pedestrianising neighbourhoods.
But air pollution is just one of many pressing environmental problems the pandemic has highlighted. Biodiversity is another. A number of scientific studies – most recently conducted by University College London researchers – show that biodiversity loss increases the risk of disease pandemics. We expect safeguarding biodiversity to take centre stage in the public debate on how to prevent future pandemics and achieve better health outcomes.
More radical economic transformation needed
It has taken an unprecedented lockdown to make even limited progress in delaying Overshoot Day by a few weeks. This reveals the scale of the environmental problem we’re facing. Clearly, putting the brakes on economic activity is not a viable solution.What is needed is a much more determined transformation of our economic structures.
This is a challenge that requires an all-hands-on deck approach involving everyone — governments, businesses and individuals.
Investing to make a positive environmental impact
Our Global Environmental Opportunities(GEO) strategy invests exclusively in businesses providing innovative solutions to environmental challenges facing our planet, while at same time using resources efficiently, minimising their waste and limiting other adverse impacts on the environment. These companies are part of the thriving environmental products and services industry, already worth some USD 2.5 trillion and growing at 6 per cent per year.
Stocks in GEO have a significantly lower environmental footprint than those represented in the MSCI All-Country World equity index. Analysing the nine environmental dimensions of the Planetary Boundaries framework using a proprietary life-cycle assessment methodology, the GEO portfolio achieves a significantly more positive impact than that of a typical global equity strategy, particularly in climate change and biodiversity. This is how our strategy allows investors to safeguard the planet while retaining the prospect of long-term outperformance.
With a risk-return profile similar to that of a growth-oriented investment strategy, Pictet AM’s Global Environmental Opportunities can be used to complement an equity allocation within a global portfolio.
Tribune written by Steve Freedman, Senior Product Specialist at Pictet Asset Management.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to risks and uncertainties that could cause actual results to differ materially from those presented herein.
Important notes
This material is for distribution to professional investors only. However it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation. Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
This document has been issued in Switzerland by Pictet Asset Management SA and in the rest of the world by Pictet Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.
For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.
Pictet Asset Management Inc. (Pictet AM Inc) is responsible for effecting solicitation in North America to promote the portfolio management services of Pictet Asset Management Limited (Pictet AM Ltd) and Pictet Asset Management SA (Pictet AM SA).
In the USA, Pictet AM Inc. is registered as an SEC Investment Adviser and its activities are conducted in full compliance with the SEC rules applicable to the marketing of affiliate entities as prescribed in the Adviser Act of 1940 ref. 17CFR275.206(4)-3.
Pixabay CC0 Public Domain. Neuberger Berman y XP unen fuerzas para ofrecer una estrategia US multicap a inversores brasileños
Neuberger Berman, a private, independent, employee-owned investment manager, has partnered with XP Inc, a leading technology-driven financial services platform, to offer its flagship US multi-cap equity strategy to Brazilian investors. Via the XP Investments platform, the Neuberger Berman Multi-Cap Opportunities Fund will be available for Brazilian retail and institutional investors through a local feeder fund managed by XP.
The Neuberger Berman Multi-Cap Opportunities Fund is driven by fundamental research to uncover investment opportunities across US equity markets regardless of capitalisation or style spectrums. The fund is a high conviction strategy which typically invests in 30-40 stocks across three distinct categories: Special Situations, Opportunistic and Classic.
The investment team, led by Senior Portfolio Manager Richard Nackenson, adopts a disciplined bottom-up process alongside in-depth quantitative and qualitative free cash flow and capital structure analysis of investee companies. Nackenson, who has run the strategy for over 15 years and has 25 years of investment experience, is supported by a dedicated team of three securities analysts, as well as Neuberger Berman’s wider equity division and ESG investment team.The management team currently runs over 2, 6 billion dollars on behalf of clients globally.
Fabiano Cintra, Funds Specialist at XP Inc, says: “XP’s core mission is to open up a new wave of solutions for Brazilian investors by partnering with the best investment management talent across the world. We are delighted to have established this partnership with Neuberger Berman, which manages over $330 billion globally, and are confident that the US Multi-Cap Opportunities fund’s unconstrained and distinct approach to US equity investing will resonate with our client base.”
Dik van Lomwel, Head of EMEA and Latin America at Neuberger Berman, adds: “This partnership is testament to the Multi-Cap Opportunities Fund’s strong long-term track record and our team’s long-standing, distinct investment philosophy. It marks the latest step in our growth in Latin America and we are pleased to be able to offer this strategy to a wider range of Brazilian investors via the XP platform.”
Wikimedia Commons. Federated Herme se expande en Latinoamérica a través de un acuerdo con PICTON
Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, andPICTON S.A., a leading third-party fund distributor in Latin America, have announced an agreement that allows PICTON to market certain Federated Hermes funds to institutional clients in Latin America.
The agreement focuses PICTON’s efforts on strategically positioning Federated Hermes’ investment capabilities and services in the Latin American pension funds industry and with institutional participants across the region on a private-offering basis.
“With their experience and strong local knowledge of markets in Chile, Colombia and Peru, we are pleased to work with PICTON to market Federated Hermes’ products in the region. As a global leader in responsible investing, it was important for us to be diligent in our search process and find a firm that is client-focused and has a track record of success. We found that in the PICTON team,” said Bryan Burke, Head of global accounts and Latin America at Federated Hermes.
“PICTON is proud to enter into this arrangement with Federated Hermes, a firm with outstanding history and a leader in responsible investing,” said Matias Eguiguren, founding partner at PICTON. “We look forward to a strong relationship driven by Federated Hermes’ investment capabilities and our broad and deep knowledge of institutional clients,” said Patricio Mebus, Head of mutual funds distribution at PICTON.
PICTON will provide due diligence, product information and analysis to institutional clients and serve as a liaison point between them and Federated Hermes’ teams.
PICTON is an independent investment firm serving high-net-worth individuals and institutional investors throughout Latin America. PICTON distributes best-in-class investment products to Latin American institutional investors, being one of the leading third-party fund distributors in the region with local offices in Chile, Colombia and Peru.
Federated Hermes, Inc. is a leading global investment manager with 628,8 billion in assets under management as of June 30, 2020. Guided by their conviction that responsible investing is the best way to create wealth over the long term, their investment solutions span 162 equity, fixedincome, alternative/private markets, multi-asset and liquidity management strategies and a range of separately managed account strategies. Providing world-class active investment management and engagement services to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes’ more than 1,900 employee, include those in London, New York, Boston and several other offices worldwide. For more information, visit FederatedHermes.com. #