Pictet Asset Management launches Pictet-Positive Change
Luxembourg domiciled and UCITS compliant, Pictet-Positive Change aims to identify companies with strong alignment of their products & services with the UN SDGs, those improving their alignment, and those with the potential to improve their SDG-alignment encouraged by targeted engagement by Pictet AM’s investment team. This is what drives Pictet AM’s positive change approach and classifies the fund as Article 8 under SFDR guidelines.
Evgenia Molotova, co-lead manager for the fund, says: “Our aim is to create a concentrated portfolio of financially robust companies that are aligning with global efforts to achieve sustainability goals and that will outperform the broader market.”
As the world transitions towards a more sustainable future, we believe companies whose products and services are aligned with the SDGs will benefit from the compounding of their superior returns over time. While companies increasing alignment, through targeted engagement, will benefit both from improving returns and a valuation re-rating.
Measurability is key to the strategy. Yuko Takano, co-lead manager, says “Investing in companies at an earlier stage of the impact improvement transition requires transparency in reporting alongside active and targeted engagement, as the investment team seek to demonstrate and drive the Positive Change after which the strategy is named.”
The investment team uses an innovative and proprietary Natural Language Processing (NLP) tool to assess the alignment of a company’s products & services with the SDGs. This systematic tool looks at positive and negative alignments for every SDG based on the conclusions of a comprehensive database of academic research. Even for positively aligned companies, the tool pinpoints negatives and potential areas of improvement.
Evgenia and Yuko will be supported by Peter Rawlence, Investment Manager, and two Client Portfolio Managers, Duncan Downes and Adam Johnson.
The fund is currently registered for sale in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy (professional only), Lichtenstein, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, UK.