Pictet Funds is set to launch a Ucits III fund investing in water, clean energy, timber and agriculture.
The Pictet-Environmental Megatrend Selection fund is expected to launch on September 10. Philippe de Weck, the manager, will use the expertise of Ethos, the Swiss Foundation for sustainable development, and invest according to the widely accepted environmental, social and corporate governance criteria.
Choosing from an investment universe covering some 1,000 publicly-quoted companies with a small-to-mid capitalisation bias, Pictet will select stocks from both developed and emerging markets.
Their fund will include rebalancing on a monthly scale and have a strategic allocation set in place.
Pictet aims to create a diversified and structured portfolio with a socially responsible exposure to environmental megatrends.
Those trends include changing demographics, growing scarcity of water, arable land and timber. In addition, the fund will include investments that are expected to benefit from a shift of energy production to environmental friendly resources.