The Covid pandemic, increased inflation, high interest rates and the geopolitical crisis have once again demonstrated the importance of investing based on a clear long-term vision.
Thematic funds
And that is exactly what Pictet Asset Management’s thematic funds do. They invest globally in stocks of companies whose growth is supported by megatrends. Megatrends are powerful evolutions that will fundamentally change our society, economy, and daily life over the next decade.
Some examples of megatrends are population growth, ageing communities, climate change or rapid technological innovation. These megatrends determine our future and at the same time create great opportunities for investors. Companies with solutions to the challenges arising from these powerful changes can achieve above-average profit growth for the long term. These are the companies in which Pictet’s thematic funds invest.
Useful compass
Moreover, investing based on megatrends provides the investor with a very useful compass that helps to look beyond the shorter-term volatility in the financial markets. Because even in an uncertain world, megatrends are only getting stronger. Even though the last months were very turbulent, the big issues the world is facing, did not suddenly stop.
Winners of the future
On the contrary. Current events have made themes such as clean energy, water, sustainable food, biotechnology, digitization, or cybersecurity even more important. Short-term turmoil on the stock market do not change any inevitable long-term evolutions. And companies that can respond to this will in any case become the winners of the future.
Investing in Thematic funds has a huge benefit. Thematic funds allow investors to invest in the themes of which they are personally most convinced. This helps to keep a cool head in times of market declines.
market declines.
Positive impact
Moreover, Pictet’s thematic investment approach offers investors the opportunity to generate a positive impact: they finance a solution to an important problem. Investing in the theme of water means financing companies with solutions to make drinkable water accessible to as many people as possible; investing in the theme of biotechnology means financing companies that discover molecules that might treat our children, etc. Investing in themes based on megatrends can therefore provide both interesting financial returns and positive impact.
Disclaimer
This article is provided by Pictet AM, Pictet AM is responsible for the content and opinions. The information given in this article is for general information purposes only and is neither intended to provide legal or other professional advice nor does it commit MeDirect Bank (Malta) plc to any obligation whatsoever. The information given is not intended to be a suggestion, recommendation, or solicitation to buy, hold or sell, any securities and is not guaranteed as to accuracy or completeness.
The financial instruments discussed may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.
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