Pictet Timber I GBP

Invests in equities with a focus on companies that own or manage forests.

  • 16137.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.80%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.19%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 15 January 2021

This fund invests in a combination of Forestry companies that either own forests or process forestry goods, or both. The fund is seeking to exploit what Pictet believe is the positive long term fundamental that will lead to the appreciation of Forestry companies. Investors should note that the fund will have a high correlation to Timber prices and, as such, there is a significant amount of single commodity exposure that will make the fund volatile.

Fund summary

Sector Specialist
Structure OFFSHORE FUND
Launched September, 2009
Size £427m
Yield 0.00%
Charging basis
Dividends paid

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.80%
Ongoing charges figure 1.19%

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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.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.09%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.83%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Gabriel Micheli

Micheli joined Pictet Asset Management in 2006 and is an Investment Manager in the Sector & Theme Funds team. He manages the ‘Timber’ fund. Micheli is a Chartered Financial Analyst (CFA) charterholder. He graduated with a degree in Economics from the University of St. Gallen.

Track record

The track record of Gabriel Micheli in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -46.00% (September 2008 - February 2009)
Relative -16.00% (September 2008 - February 2009)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Portfolio

The fund has roughly 60% exposure to direct Forests with the remainder being in the manufacture of Timber related products such as Pulp. The universe is 140-150 stocks with about 10% being ineligible due to Ethical reasons. Tracking error is high and Beta low which is indicative of more volatile fund returns.

Constraints

The manager is very conscious of liquidity and volatility. Stocks more volatile than the industry average receive significant negative score in the investment process. Liquidity demands include 80% of the portfolio being sold on 20% daily average volume over 20 days.

Key Investor Information

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