Pictet Fund Management has launched a new sector fund that focuses on water companies worldwide. The ...
The objective is to benefit from forecast increases in the demand for water and sewerage services and anticipated re-structuring and consolidation in the industry.
In addition, the fund may have some exposure to allied sectors such as engineering or chemicals as well as in air pollution control.
Fund manager Hervé Gaudart, who has been with Pictet for eight years and previously worked at UBS, estimates the current investment universe to be made out of approximately 80 names worth a total market cap of around $100bn.
By 2015, he would expect the market cap of the sector to have grown to $400bn.
The fund will hold approximately 40 names selected for their good management, strong financing, potential for margin improvement, strategic positioning and high return on investment.
In addition, Gaudart is hoping to take advantage of privatisations and IPOs.
The Pictet Water fund is a sub-fund of the Luxembourg FCP umbrella fund, Pictet Global Sector.
Other Pictet global sector funds include biotech, telecom and leisure.
The fund is denominated in euro. It has daily dealing and and a management fee ranging from between 0.90% to 2%, depending on the size of the investment.
Pictet has approximately CHF13.5bn under management in a range of 50 funds.
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