Pictet-Robotics
Contents page 2 1 Pictet Asset Management 2 Explaining megatrends 3 Thematic investing 4 Robotics strategy 5 Fund information
1. Pictet Asset Management
Pictet Asset Management 4 835 employees 300 investment specialists* 151 EUR BILLION managed assets 1980 year assets were first managed 17 offices worldwide * Senior Management, Investment Managers and Analysts, Traders and Risk Management. Source: Pictet Asset Management, 31.12.2016
Pictet Asset Management Our investment beliefs 5 1 2 3 We aim to build lasting partnerships with our clients by exceeding their expectations for investment performance and service. We empower each team to be independent to encourage innovation and accountability. We manage risk as much as portfolios. Risk management is an integral part of our decision making. Source: Pictet Asset Management
2. Explaining megatrends
Explaining megatrends Megatrends: Shaping all our futures 7 Megatrends are powerful forces of change reshaping our world. They impact business, economy, society, cultures and personal lives in ways no investor can afford to ignore. They represent seismic shifts, providing longterm investment opportunities. High Impact Trends Megatrends Temporary phenomena Micro trends Source: Copenhagen Institute for Futures Studies 15 years+
Explaining megatrends Identified 14 megatrends Demographic development Network Economy Sustainability 8 Focus on Health Knowledge society Polarisation Immaterialisation Globalisation Democratisation Commercialisation Individualisation Economic growth Acceleration & Complexity Technology development Source: Copenhagen Institute for Futures Studies, Pictet Asset Management
Explaining megatrends Where megatrends connect, powerful themes emerge Demographic development Sustainability 9 Knowledge society Robotics theme Economic growth Technological development Source: Copenhagen Institute for Futures Studies, Pictet Asset Management
3. Thematic investing
Thematic investing Thematic investment approach 11 Secular growth exploits inefficiencies caused by short-termism Theme Forward looking portfolio Benchmark agnostic Focus we know everything about a little Source: Pictet Asset Management
Thematic investing Thematic teams benefit from the insight of experts 12 Our advisory boards Interaction with industry experts Our investment teams receive top-level advice from industry practitioners and leading academics recognised as thought leaders in their field. Our advisory boards: 1 2 3 Have been in place since 2000. Help develop and update the investable universe. Help identify emerging technologies, policies and trends. Source: Pictet Asset Management
Thematic investing The big ideas shaping all our futures 13 Insights from distinguished experts Contributors include advisory board members Mega, produced in partnership with Pictet Asset Management. Visit www.mega.online for more details. 1 2 3 It features articles and videos from leading academics, scientists and entrepreneurs active in the fields of sustainability, technology, health, alternative energy and agriculture. Provides insights into the problems faced by humanity and the innovations that could one day solve them. Seeks to energise and enrich the debate over how to create a better-functioning economy and society. Source: www.mega.online
4. Robotics strategy
Robotics strategy Long-term capital appreciation 15 1 2 3 EXECUTIVE SUMMARY Seeks growth in a sector that is at the forefront of technological innovation and set to grow faster than the global economy 1. Investing in innovative companies with the ability to increase productivity, reduce costs and help solve the challenges linked to an increasingly elderly population. Global equity portfolio of ~40-60 stocks, focusing on compelling theme investment opportunities 2. 1 Over the coming years. 2 These investment guidelines are internal guidelines which are subject to change at any time and without any notice. Source: Pictet Asset Management, 31.12.2016
Robotics strategy Robotics theme: Our investment experts 16 Karen Kharmandarian Senior Investment Manager (co-lead) Years of experience: 22 Peter Lingen Senior Investment Manager (co-lead) Years of experience: 21 Alexandre Mouthon Senior Product Specialist Years of experience: 20 Source: Pictet Asset Management, 31.12.2016
Robotics strategy The next frontier: an attractive investment case 17 1 Robots are becoming cheaper, smaller, smarter, safer and more energy efficient 2 Robots applications have increased in breadth and are now tapping unserved markets 3 Robotics will be ubiquitous, aiming to address long-term challenges including: Ageing society Sustainability Mass customisation Source: SG Cross Asset Research Equity, Kuka
Robotics strategy The next frontier: an attractive investment case 18 Mind the demographic gap Decreasing global workforce relative to elderly Did you know.? 1 With falling birth rates and population aged 65+, predicted to double 1, robots will be required to help counteract lost productivity and the elderly in need. 2 3 A single type of robotic system has been used on over 3 million patients for minimally invasive surgical procedures 2. Service robots industry* is expected to grow by 20-25% annually over the next 5 years 3. Source: United Nations World Population Ageing, 2015 *Including driverless cars and smart personal assistants. Source: 1 United Nations World Population Ageing; 2015, 2 da Vinci surgery, 2015, 3 IFR, CICC Research, 2015 Source: Pictet Asset Management
Robotics strategy 19 Growth prospects Global robotics market (USDbn) 60 50 10% CAGR* 50.4 40 30 31.7 20 19.4 10 5.0 7.3 10.0 0 2000 2005 2010 2015E 2020E 2025E Personal Commercial Industrial * For illustrative purposes only. Estimated growth of the global robotics market (Industrial, Commercial and Personal) between 2015 and 2025. Source: Boston Consulting Group, 30.09.2014, Pictet Asset Management.
Robots are no longer confined to the factory floor 20
invest in companies enabling them to become part of our daily lives 21
Robotics strategy Example: Consumer and services applications 22 Improving productivity and quality of life PROBLEM Increasing care needs for the elderly within our ageing society. SOLUTION Automation can complement a declining workforce. Service robotics can improve quality of life. They are being developed to assist in the operating theatre, monitor vulnerable patients in their homes and help stroke patients walk again through the use of robotic exoskeletons. Source: Pictet Asset Management
Robotics strategy Consumer and services applications 23 Company details - Intuitive Surgical Inc Intuitive Surgical Inc is a global leader in technology for minimally invasive robotic assisted surgery. Their da Vinci robotic surgery system was the first system in July 2000 which was approved by the FDA. Headquarters Market cap Sub-segment USA USD 24.8 billion Healthcare Robotics Source: Bloomberg, 31.12.2016 Source: Intuitive Surgical Inc Examples provided only for illustration purpose. This information does not convey the past, current or future composition of the Pictet-Robotics fund s portfolio.
Robotics strategy Summary Investment strategy 24 Gaining increased breadth and tapping unserved markets Aims to solve global challenges Market is expected to achieve a double digit growth rate* Managed by Pictet Asset Management Pioneers in thematic investing for over 20 years Each thematic strategy is actively managed by specialist portfolio managers Focus on delivering better outcome not just for investors but for everyone * Estimated growth of the global robotics market (Industrial, Commercial and Personal) between 2015 and 2025. Source: Boston Consulting Group, 2014 Source: Pictet Asset Management, 31.12.2016
Our world is changing 25
Shouldn't your investments change too? 26
Are you following the theme? assetmanagement.pictet @PictetAM_Themes Pictet Asset Management mega.online @megaonline mega.online
5. Fund information
Fund information 29 General notes (1) Investment objective Pictet-Robotics seeks capital growth by investing in companies that contribute to and/or profit from the value chain in robotics and enabling technologies. Index for comparison purposes MSCI World ISIN LU1279334483 (R-EUR share class) Investment horizon Regulatory context May not be appropriate for investors who plan to withdraw their money within 7 years UCITS compliant Inception date of compartment 07.10.2015 (R-EUR share class) Fund size EUR 1,780m Number of positions 53 Source: Pictet, 31.12.2016
Fund information General notes (2) 30 Fund domicile Dividend Legal status Manager Sub-Manager NAV valuation Max annual management fee Ongoing charges* Entry charge** Exit charge** Conversion fee*** Luxembourg Reinvested Investment Company with Variable Capital (Sicav/OEIC) Pictet Asset Management Limited Pictet Asset Management SA Daily 2.90% (R-EUR share class) 2.82% (Charges taken from the share class over a year) max 5% in favour of your financial intermediary max 3% in favour of your financial intermediary max 2% in favour of your financial intermediary *The ongoing charges figure is based on expenses for the period ending on December 31st, 2015 and may vary from year to year. **Maximum that might be taken out of your money before it is invested, before proceeds of your investment are paid out. ***Conversion of some shares or all shares (sale of shares of one shareclass to invest in shares of another shareclass) held in the same sub-fund or among different subfunds (sale of shares of one sub-fund of the Pictet SICAV to invest in another sub-fund of the same SICAV). Source: Pictet, 31.12.2016
Fund information What are the risks? 31 Past results offer no guarantee for the future. Risk indicator for the R-EUR share unit Lower risk Higher risk Typically lower rewards Typically higher rewards 1 2 3 4 5 6 7 The value of and income from an investment may rise or fall, and it is possible that investors will not recover their original investment. The fund may invest in emerging markets; investments in emerging markets can potentially be riskier and more volatile than investments in developed markets. Investments are made in shares denominated in foreign currencies, and the investments are not hedged to the fund's reference currency; currency fluctuations can therefore have a negative as well as a positive effect on the investment result. Source: Pictet, 31.12.2016
Pictet-Robotics Disclaimer 32 This marketing material is issued by Pictet Asset Management (Europe) SA. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Only the latest version of the fund s prospectus, KIID (Key Investor Information Document), regulations, annual and semi-annual reports may be relied upon as the basis for investment decisions. These documents are available on assetmanagement.pictet or at Pictet Asset Management (Europe) SA, 15, avenue J. F. Kennedy L-1855 Luxembourg. The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments. Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. Pictet Asset Management (Europe) SA has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional. The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested. Risk factors are listed in the fund s prospectus and are not intended to be reproduced in full in this document. Past performance is not a guarantee or a reliable indicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares. This marketing material is not intended to be a substitute for the fund s full documentation or any information which investors should obtain from their financial intermediaries acting in relation to their investment in the fund or funds mentioned in this document. Pictet Asset Management Ltd has not acquired any rights or license to reproduce the trademarks, logos or images set out in this document except that it holds the rights to use any entity of the Pictet group trademarks. The trademarks, logos and images set out in this document are used only for the purpose of this presentation.