Independent Financial Advisor and Co-Founder of Affari Miei
October 25, 2023
If you are looking for information on fondo Pictet Water (ISIN: LU0104885248) then you’ve come to the right place because today we will analyze this fund proposed by Pictet.
You will be able to inform yourself and discover all its features characteristicshis costsi advantages they disadvantagesprecisely because mutual funds, like all instruments designed for investing, have positive and negative sides, and it is up to us to understand if it is really the right investment for our strategy and our risk profile.
At the end of the review you will also find qualified opinions on the fund: we will start from the analysis of the KID (Key Information Document).
Let’s start!
This article talks about:
Pictet Asset Management: here’s an overview of the company
Pictet Asset Management belongs to the Pictet Group, founded in Geneva in 1805. It is one of the largest independent banking groups in Europe, specializing in asset management.
Its activities are divided into:
wealth management, for high net worth owners and wealthy families; asset management, for professional investors; asset services, for financial advisors, independent managers and institutions; alternative investments, for institutional and private clients.
Their goal is to build responsible partnerships with customers.
The company has 18 locations worldwide and can count on more than 400 investment professionals.
If you’re interested, here you will find an overview of all Pictet funds.
Characteristics of the Pictet Water fund
Pictet Water it is a fund a active management.
Its objective is to increase the value of the investment. The bottom is openthat is, investors can enter and exit the investment at any time and the assets are therefore never constant.
The sub-fund invests in shares of companies dealing with distribution or of water treatmentand technologies applied to water and environmental services.
In actively managing the sector, the manager uses a combination of company and market fundamental analysis to select stocks that it believes have favorable growth prospects, at a reasonable price.
The fund may be suitable for investors seeking long-term growth who are willing to take potentially higher risk with their investment.
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What he invests in
We have seen that the fund invests in companies that deal with water and technologies applied to it.
It is also important to remember that the investment manager considers the ESG factors as a core element of its strategy and aims to invest primarily in economic activities that contribute to an environmental and social objective, while avoiding activities that negatively impact society or the environment.
In fact, if you choose this fund you will opt for companies that are able to provide solutions to the global water problem.
Investing in water: why it is important
This type of company represents ainteresting investment opportunity.
This is because, given the pressure on public spending, governments are increasingly turning to private companies in order to find a solution to the global water problem.
This fund seeks to focus on water supply, technologies and environmental services.
It is also good to know that the water services sector is growing at a rate annual rate of 4-6%and that by 2030 more than $1 trillion per year will need to be allocated to build efficient water infrastructure.
The benchmark
The benchmark is theMSCI AC World in euroan international equity index that tracks stocks from 23 developed countries and 24 emerging markets.
The composition of the portfolio is not limited compared to the benchmark, therefore the similarity of the sub-fund’s performance to that of the benchmark may vary.
Subscription method and revenue distribution policy
The fund is domiciled in Luxembourg, and was listed in 2000.
You can subscribe to the fund either with a single payment, opening a Capital Investment Plan (PIC), or through periodic payments, i.e. opening a Capital Accumulation Plan (PAC).
The dividend policy is ad accumulationwith dividends being reinvested in the fund itself to harness the power of compound interest.
The risk profile
Since this is an equity fund, the risk/return level could be medium or high.
This fund is valued at grade 4 of risk, on a scale that starts from 1, the lowest risk, and goes up to 7, the highest risk. We are therefore in a medium risk situation.
It is only suitable for risk-taking investors interested in significant economic growth, however it is important to invest with a view to staying in the fund for many years.
Costs
Now we focus on cost statementwhich we need to best evaluate the investment.
It is important to check as best as possible what the various costs you will have to bear in the investment are, also because even costs that may seem small on the surface could have a significant impact on your portfolio in the long run: read here to find out more.
Let’s see them now expenses:
Entry costs: Nobody;
Exit costs: Nobody;
Management costs: 2,69%;
Performance fees: none.
Historical returns
I attach here a screenshot taken directly from KID of the Pictet Water fund which allows you to have an overview of its returns.
Naturally, it is good to remember that past performances and returns are in no way indicative of future ones.
As you can see from the graph the fund has succeeded over the years replicate the benchmarkfrom 2013 until the current year.
The manager’s objective is not to replicate an index 100%, so he can follow different strategies that do not give noteworthy results in the short term.
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Affari Miei’s opinions on Pictet Water
Now that we have finished the review of the fondo Pictet Waterwe can draw a conclusion and start thinking together about the convenience of a possible investment.
If you have had the opportunity to read our other content, perhaps you will have seen that we are not huge supporters of mutual funds, but not because the instrument itself is not good, but rather because they present some characteristics which are not entirely valid.
For example, i high coststhe little transparency in investing and also i conflicts of interest between consultants and clients.
If you want to delve deeper into the discussion on costs, I recommend you download this free report in which we see first-hand how much inefficient management can affect your assets: the impact is tens of thousands of euros.
Maybe you don’t know it but there are funds that are passively managed, that is ETFsimilar to mutual funds but which have better characteristics that make them more convenient than mutual funds themselves.
ETFs replicate the benchmark, and for this reason the investment direction will not change from time to time. These funds often manage to replicate the reference index quite faithfully, and therefore often perform better than that of a mutual fund, which deviates from the index.
The bottom Pictet Water it is suitable for an investor who wants to take risks, and who is interested in an interesting and new investment possibility, i.e. one linked to investing in water.
Without a doubt, this is a solution that could prove interesting.
Furthermore, this fund could be for you if you don’t have time to keep up with your investments or you don’t trust your abilities: this way the manager will do everything, and you won’t have to worry about anything.
If, on the contrary, you want to be aware of your investment and you want to know what happens to your savings and above all how they are invested, then you could seriously think about taking control of the situation and looking for better alternatives.
Conclusions
Before investing in any financial instrument I advise you to train youbecause studying will allow you to avoid future problems if things don’t go well.
This applies in general, even if you want to invest alone without anyone helping you.
There are a series of technical concerns regarding actively managed mutual investment funds which, in our opinion, do not make them particularly attractive: in this report we explain the enormous impact that all the highlighted critical issues can have over time.
Furthermore, if this is your first time on Affari Miei and you want to know our approach, you can start here.
Before saying goodbye, I also leave you some guides:
Happy continuation here on Affari Miei!
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