Pictet launches environmental megatrends fund

Geneva based Pictet Funds is looking to bolster its SRI offering with the launch of a new fund.

The euro denominated Pictet-Environmental Megatrend Selection fund aims to capitalise on the growing scarcity of water, arable land and timber and the shift of energy production to more eco-friendly resources. It also cites changing demographics as a key driver for long-term growth.

Using the expertise of Ethos, the Swiss Foundation for sustainable development, the fund will first identify and then seek to engage with companies where socially responsible changes can be effected.

'From an environmental, societal and governance point of view, it makes sense to engage a company in dialogue. But it also gives economic and financial added value,' said Dominique Biedermann, managing director of the Ethos Foundation. 'For example, a company active in an environmentally controversial field may ultimately run into serious problems due to long term, unforeseen risks. This can have important financial consequences.'

The fund will have an investment universe of around 1,000 companies from the small and mid cap space.

On the launch Laurent Ramsey, CEO of Pictet Funds said: 'This fund is supported by solid long term fundamentals with excellent growth perspectives. We've focused our expertise in this field to provide investors a diversified, structured and socially responsible exposure to environmental megatrends.'