Private banking clients in Asia and Europe have expressed strong interest towards the Pictet-Security fund for its technology-laced diversified names, Citywire Asia has learnt.
Data from Citywire Discovery showed that the fund’s net inflows was $1.46 billion over the past one year from 1 January to 31 December 2017.
Yves Kramer, senior investment manager at Pictet Asset Management said that after the tech run-up last year, investors remain faithful to the fundamentals as well as long-term prospects of the sector and continue to hold onto their tech portfolios.
‘But to avoid overconcentration, private banking clients are now looking elsewhere for investment opportunities.
‘They favour Pictet-Security fund for its diversification that taps a $500 billion market where physical security products, IT security products and security services are offered across six segments,’ he said,
The six segments include cybersecurity, secure electronic payment, environmental and food safety, occupational safety, infrastructure safety, and construction.
Investors are also interested in the fund because it rides on the theme of technology advancement, such as Internet of Things and automated vehicles.
Kramer said investment in payment processors has become a trend in the industry.
‘We are investing in payment processors. You need to protect the transaction and you need to have a processing company behind to secure the transaction. It is related to authentication and you need to have a security concept.’
Furthermore, the fund manager is eyeing the auto safety market and strongly believes in autonomous vehicle.
However, due to the sector’s cyclical nature, he said, when the market is very volatile it is not a good idea to expose too much in auto safety market.
‘In the last 24 months, the Federal Reserve has increased its interest rates, we may have more and more volatility going on.
‘If that’s the case, we are not going to be too much exposed in that cyclical business,’ he explained.