PICTET TIMBER P DY GBP - Fund overview

Portfolio

• Asset Allocation
• Equity Geographic
• Equity Capitalisation

Allocation		Proportion
	Equity	96%
	High yield bonds	–
	Quality bonds	0%
	Property	0%
	Commodities	–
	Hedge	–
	Fund cash	4%

Allocation		Proportion
	UK	2%
	Europe	16%
	Nth America	53%
	Japan	3%
	Pacific	2%
	Other Equity	24%

Allocation		Proportion
	Large Caps	29%
	Mid Caps	48%
	Small Caps	23%

View all performance data for PICTET TIMBER P DY GBP

Investment process

The long term fundamentals that the manager believes will lead to the appreciation in Foretry prices includes significantly higher demand from Asian countries, across the whole value chain, a reduction in supply and new sources of demand through the use of Timber in renewable sources of energy.
The manager employs the same process as the other Environmental Megatrend funds. This gives each company an individual weighting of 6% and adjusts this in regard to 4 factors. These are, the purity of the stock to the theme, liquidity and volatility, the quality of the company and the valuation and the strength of the individual sub sector exposure on a relative valuation basis. Through this method the manager arrives at a portfolio weight.
Specific to Forestry the manager also seeks to attribute a more accurate valuation to the company as Forests tend to be valued intermittently, despite the factor that Timber continues to grow. This aspect of the asset class also allows the companies to harvest the Timber when they choose, without the opportunity cost associated with most commodities.
The fund does not have a formal Socially Responsible Investment (SRI) screen however the manager is assisted by Christopher Butz who is responsible for ensuring that only companies that match Pictet's Ethical criteria are included in the portfolio. In practice this means that Forests have to be managed sustainably. The manager also has the use of the Advisroy Board which consists of one Academic and an Industry veteran.
The fund is part of the Pictet Megatrend range and is a component of the Global Megratrend fund and the Environmental Megatrend fund.