Megatrends shape the future. Thematic investing takes you there.
Explore the megatrends framework
The interactions between these megatrends create investible themes Pictet Asset Management identifies through the Pictet Megatrend Framework, a model that forms the basis for our thematic investing approach.
A framework for thematic investing
Delivering sustainable and long-term outcomes requires elevated expertise to identify, analyse, and monitor the impacts of the secular forces that influence companies and economies.
Our framework for thematic investing was developed in collaboration with the Copenhagen Institute for Futures Studies, a recognised leader in the field of megatrends. The framework is designed to provide a high level of granularity applicable to thematic investing. We also incorporate insights from Pictet's 13 Thematic Advisory Boards.
Pictet Asset Management is the largest active thematic fund provider by AUM globally.
Megatrends in action
Climate change is one of the megatrends sitting within the environment cluster. Our investment professionals utilise the framework to assess the extent to which climate change and related megatrends constitute secular growth drivers for a particular investment theme.
Megatrend example: climate change
The impacts of climate change will have far-reaching implications for our shared prosperity. To mitigate its effects, governments and numerous sectors are creating solutions to reduce greenhouse gas emissions.
By supporting companies that seek to alleviate the problem, investors may gain exposure to emerging technologies like clean energy that will become increasingly important in the coming decades.
Investment in clean energy sources to address emissions reduction is increasing, while the price of mature clean energy technologies generally continues to fall over time.
Source: IEA, 2023
Source: IEA, 2023
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