gestión isr en pictet modelo de gestión y engagement · los factores de riesgo están indicados...

Patricia de ArriagaJunio de 2013

Gestión ISR en PictetModelo de Gestión y Engagement

Modelo de Gestión ISR

1

3Modelo de Inversión y EngagementPictet Asset Management

Dos caminos hacia la sostenibilidad

“El ascenso sostenible”“La vía directa”

Enfoque temático(Agua, Energías Limpias, Madera)

Enfoque temático/sectorial

“Best-in-Class”

Oferta/orientado a soluciones

Uno o pocos criterios sostenibles

ASG (Ambiental, Social y Gobierno Corporativo

Inversión “Core”

“Best-in-Class” (sostenibilidad)

Demanda/orientada al consumo

Multitud de criterios ASG

Fuente: Pictet Asset Management

PAM* Sector Teams PAM Quantitative Investments & SRI


Asignación sostenible “Core-Satellite”

Soluciones SRI Core Carteras Best-in-Class (Inversiones Mixtas & Cuantitativas de PAM, Equipos de Renta Fija)

Fuente: Pictet Asset Management

Pictet-Clean Energy

Pictet-Water

Pictet-Timber

Pictet-Agriculture

Satélites Medio ambientalesFondos temáticos(Equipos sectoriales y temáticos de PAM)

Ethos – World

SustainableEmerging Equities

Ethos - Pacific

Institutional European Sustainable Equities

Pictet-European Sustainable Equities

Equities World, indexedwith exclusions

Equities Europe, indexedwith exclusions

Pictet-Ethos (CH) – SwissSustainable Equities

Ethos SRI Bonds International

Ethos SRI Bonds CH

Ethos – North America

Ethos – Europe


Inversión Sostenible en Pictet– Datos clave

Histórico de la Inversión Sostenible en Pictet

20072008

Lanzamiento Pictet - European SustainableEquities Fund& Mandatos

Lanzamiento Pictet-Ethos (CH) – Renta Variable sostenible suiza

2002

1999

2005 2006

Lanzamiento Pictet-Timber

Acuerdo entrePAM & Ethos

3 veces “Proveedor ISR del año” por la revista Global Pensions

2009

2004

Primeros mandatos indexados con criterios de exclusión & Gobierno Corporativo

2010

Primer mandato ISR para Mercados Emergentes

Lanzamiento Pictet-CleanEnergy

Total AuM: >EUR 5 bn*

(RV Core ISR & Fondos Temáticos)

2000

Pionero temático conPictet- Water

Lanzamiento Pictet-Agriculture

Fondos temáticos

Renta Variable Core ISR

*a 31.12.2012Fuente: Pictet Asset Management

2012Lanzamiento Pictet-

Environmental-Megatrend Lanzamiento Pictet-Emerging Markets

Sustainable Equities


Proceso de Inversión: Objetivo

“Queremos crear sostenibilidad

financiera Y extra-financiera”

La sostenibilidad extra-financiera se logra restringiendo el universo de inversión a las compañías más sostenibles según medición de nuestro propio “estándar e indicadores de impacto”

La sostenibilidad financiera se logra seleccionado aquellas compañías que presentan una alta correlación con nuestros “propios indicadores sostenibles financieros”.

7Modelo de Inversión y EngagementPictet Asset ManagementPictet Asset Management

Solución – Un proceso de inversión sostenible e innovador

Asegurar sostenibilidad extra-financieraExcluir actividades controvertidasConservar compañías “best-in-class”

Fomentar sostenibilidad financieraMejorar las características riesgo-rendimientoApostar por factores financieros rentables

INDICE MSCIUNIVERSO DE INVERSION CARTERA FINAL

Análisis extra-financieroAnálisis de sostenibilidad

financiera

Sostenibilidad extra-financiera insuficiente

Sostenibilidad financiera insuficiente


1.Rating ASG „Standard“

Fuente: Inrate ‘Summary Profile’ 2011


2.Thomson Reuters: rating ASG & herramiento de filtro

Fuente: Thomson Reuters 2011; PCO Customised Rating.


3.RepRisk: Detecta y monitoriza los riesgos de reputación

Fuente: RepRisk Online Tool


Factores de impacto

Dimensión ambiental: Emisiones de CO2 de un coche (ejemplo) Dimensión social : Preocupaciones de los votantes suizos

100%75%

19%

4%2%

0%

20%

40%

60%

80%

100%

120%

Montaje Materiasprimas

ProducciónCombustible

Uso del vehículo

Total0 20 40 60 80

UE/Bilaterales

Seguridad personal

Extranjeros

Cobertura social

Servicios sanitarios

Planes de pensiones

Desempleo

Fuente: Inrate, Pictet Asset Management,

CO2 EMPLEOS

Fuente: Crédit Suisse, 2011


Creencia n°1: Un alto crecimiento conduce a un mayor rendimiento

Hecho: Las empresas de crecimiento más lento tienden a ser más rentables

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

Q1-LOWEST GROWTH Q2 Q3 Q4-HIGHEST GROWTH

En teoría

Se espera que las compañías con crecimiento más rápido logren mayor rendimiento para los accionistas

En la práctica

Las empresas de alto crecimiento tienden a rendir menos que sus homólogos más conservadores

Nota: Rentabilidad anual compuesta de acciones globales por crecimiento de activos 1991-2011.Clasificado por crecimiento total de activos sobre periodos de 5 años. Carteras equiponderadas rebalanceadas dos veces al año. Retorno total en USD.

Rentabilidad geométrica

Renta Variable 1991-2011


Creencia n° 2 : El apalancamiento fomenta los rendimientos

6.0%

7.0%

8.0%

9.0%

Q1-LOWEST LEVERAGE Q2 Q3 Q4-HIGHEST LEVERAGE

Hecho: Más allá de cierto umbral, el apalancamiento financiero es perjudicial para la rentabilidad del título

En teoría

Cuanto mayor sea el apalancamiento, mayor es el rendimiento esperado sobre el capital

En práctica

Las empresas altamente endeudadas tienden a rendir menos que sus homólogos menos apalancados

Rentabilidad anual compuesta de renta variable global por apalancamiento financiero 1991-2011Clasificado por ratio renta fija/renta variableCarteras equiponderadas rebalanceadas dos veces al año. Retorno total en USD.

Rentabilidad geométrica

renta variable global 1991-2011


Creencia n° 3 : Mas riesgo, mayor recompensa

Hecho: Mayor rendimiento no require mayor riesgo

En teoría

Los inversores sostenibles deben ser recompensados en proporción directa con el riesgo sistemático que están tomando.

En práctica

Las empresas de altos vuelos tienden a rendirmenos que sus homologosmás defensivos

800

400

200

75

100

12.1

989

12.1

991

12.1

993

12.1

995

12.1

997

12.1

999

12.2

001

12.2

003

12.2

005

12.2

007

12.2

009

12.2

011

World Index High Beta Low Beta

Carteras equiponderadas (USD), rebalanceadas cada 6 mersesClasificado por beta histórica.Retorno total en USD.

Engagement en Pictet

2


Tres niveles de sostenibilidad

EXCLUSIÓN INCLUSIÓN

COMPROMISOACTIVO (engagement)


Compromiso Activo

• Votar directrices basadas en una recomendación internacional globalmente aceptada, en la mejor práctica local y en consideraciones relativas a sostenibilidad

• Involucrar a las empresas en un dialogo con el objetivo de mejorar los estándares de negocio y mejores prácticas en una industria particular

• Contamos con la amplia experiencia y track record de la Fundación Ethos en Ginebra (para las compañías suizas) y con la red de Servicios de Gobierno Corporativo Europeo (para las compañías europeas)

Fuente: Ethos

Votando derechos y engagement son los dos instrumentos utilizados porPictet para ejercer un compromiso activo


Proceso de engagement de Ethos

MONITORIZACION ASG

MEJOR PRÁCTICA Y REQUISITOS DEMEJORA

CONTACTOS DIRECTOS CON COMPAÑIA

RECOMENDACIONES ETHOS

EVALUACIÓN COMPROMISO


Gracias por su atención

Patricia de ArriagaSubdirectora GeneralPictet Asset Management Iberia

Este documento comercial es una publicación de Pictet Funds (Europe) S.A. No va dirigido ni deberá ser distribuido a, ni utilizado por ninguna persona o entidad, que sea ciudadano o residente de o que se encuentre en algún lugar, estado, país o jurisdicción, en el que dicha distribución, publicación, disponibilidad o uso sea contrario a sus leyes o normativas. A efectos de la toma de decisiones de inversión, sólo podrán considerarse publicaciones del fondo las últimas versiones publicadas del folleto, del reglamento y de los informes anual y semestral del fondo. Estos documentos están disponibles en www.pictetfunds.com o en Pictet Funds (Europe) S.A., 3 Boulevard Royal, L-2449 Luxemburgo.La información y los datos presentados en este documento no deberán considerarse como una oferta o una incitación para comprar, vender o suscribir valores o instrumentos financieros.La información, las opiniones y las estimaciones expresadas en este documento reflejan un juicio emitido en su fecha original de publicación y están sujetas a cambios sin previo aviso. Pictet Funds(Europe) S.A. no ha tomado ninguna medida para asegurarse de que los valores mencionados en el presente documento son adecuados para un determinado inversor, y este documento no deberáutilizarse como sustituto del ejercicio de un juicio independiente. El tratamiento fiscal depende de las circunstancias particulares de cada inversor y puede cambiar en el futuro. Antes de tomar una decisión de inversión, es conveniente que obtenga asesoramiento profesional específico.El valor y la renta de cualquiera de los títulos o instrumentos financieros mencionados en este documento pueden bajar o subir y, en consecuencia, es posible que los inversores recuperen un importe inferior al que invirtieron originalmente. Los factores de riesgo están indicados en el folleto del fondo y el presente documento no tiene como propósito volver a exponerlos en su totalidad.Las rentabilidades pasadas no son una garantía ni un indicador fiable de los futuros resultados. Los datos relativos a la rentabilidad no incluyen las comisiones y los gastos cobrados en el momento de la suscripción o amortización de las acciones. Este material comercial no pretende sustituir la documentación completa del fondo ni ninguna información que deban obtener los inversores de los intermediarios financieros que intervengan en relación con su inversión en Pictet Funds (Lux).

Indice Anexos

1 Fichas Técnicas Gama ISR de Pictet

Core ISR Pictet European Sustainable Equities Pictet Emerging Markets Sustainable Equities Pictet Global Bonds Fundamental Satélite ISR Pictet Agriculture Pictet Clean Energy Pictet Environmental Megatrend Selection Pictet Timber Pictet Water

2 Presentación Pictet Agua 3 ETHOS

Informes Diálogo Sostenibilidad con Fibria Diálogo Sostenibilidad con Syngenta Engagement en Pictet Environmental Megatrend

RESULTADO INDEXADO

Fuente : Pictet Funds

RENTABILIDAD TRIMESTRAL


REPARTO POR SECTORESProductos de consumo no Básico 16,1%Finanzas 15,1%Productos de consumo 14,3%Atención sanitaria 12,1%Servicios de telecomunicaciones 10,9%Industrial 8,5%Materiales 7,0%Servicios de utilidad publica 5,7%Energía 5,5%Tecnología de la información 4,4%Liquidez 0,6%Fuente : Pictet Funds

DISTRIBUCIÓN POR PAÍSESGran Bretaña 24,6%Francia 20,1%Suiza 17,8%Alemania 11,5%España 7,5%Suecia 5,4%Italia 3,9%Noruega 3,2%Dinamarca 2,4%Holanda 2,2%Otros 0,9%Liquidez 0,6%Fuente : Pictet Funds

LAS 10 POSICIONES MÁS IMPORTANTESNestlé 2,9%Roche Holding 2,3%UBS 2,2%L'Oréal 1,9%BBVA 1,8%Muenchener Rueckver Reg. 1,7%Essilor International 1,7%GlaxoSmithKline 1,7%Cie Financière Richemont 1,7%Danone 1,6%Fuente : Pictet Funds

NIVEL DE RIESGORiesgo menor Riesgo mayor

Rentabilidad potencialmente menor Rentabilidad potencialmente más elevada

1 2 3 4 5 6 7Fuente : Pictet Funds

OBJETIVO DE INVERSIÓNEl compartimento tiene por objetivo el crecimiento del capital invirtiendo como mínimo dostercios de su patrimonio total en acciones de empresas que tengan su actividad principaly/o su sede en Europa y que apliquen los principios del desarrollo sostenible en susactividades. Se adopta un enfoque cuantitativo para la construcción de la cartera.Fuente : Pictet Funds

RESULTADO vs. MSCI EuropeFondo Indice Fondo Indice

AnualizadoAcumuladoYTD 8,05% 7,16% - -1 mes 1,88% 1,62% - -3 meses 5,11% 4,24% - -1 año 18,9% 18,5% 18,9% 18,5%3 años 24,3% 24,5% 7,52% 7,58%5 años 6,24% 6,11% 1,22% 1,19%Desde inicio 76,8% 99,0% 5,53% 6,72%

Anual Abril a AbrilFondo Indice Fondo Indice

2012 15,3% 18,3% 18,9% 18,5%2011 -7,05% -8,86% -6,15% -5,91%2010 11,2% 11,4% 11,4% 11,7%2009 32,1% 32,2% 34,1% 32,8%2008 -44,9% -44,0% -36,3% -35,8%Fuente : Pictet Funds

INFORMACIÓN TÉCNICAValor liquidativo EUR 176,81 Dividendos ReinvertidosPatrimonio (mio) EUR 70,0 Títulos en cartera 82Alza máxima 39,3% Baja máxima -20,9%Volatilidad 11,2% Tracking error 2,33%Sharpe ratio 0,58 Information ratio -0,02Alpha Jensen 0,75% Beta 0,88Correlación 0,99 R cuadrado 0,98Fuente : Pictet Funds

INFORMACIÓN GENERALGestor Laurent NguyenBanco depositario Pictet & Cie (Europe) S.A.Estatuto jurídico Compartimento de la SICAV de derecho luxemburgués

PictetLugar de registro AT, CH, CY, DE, ES, FI, FR, GB, GR, LI, LU, NL, PT, SE,

SGFecha de constitución 30 septiembre 2002Cierre del ejercicio 30 septiembreMulticlase SíCálculo NAV Diario, "forward pricing"Comisión de gestión 0,45% p.a.TER 0,63% p.a.Com. máx. suscr. 5,00% A favor del distribuidorCom. máx. reemb. 1,00% A favor del distribuidorISIN LU0144509550Bloomberg PTFSEEI LXFuente : Pictet Funds

Datos a finales de abril 2013

Pictet-European Sustainable Equities-I EUR

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RESULTADO INDEXADO




REPARTO POR SECTORESFinanzas 23,6%Tecnología de la información 11,6%Servicios de telecomunicaciones 11,1%Productos de consumo 11,0%Materiales 10,3%Industrial 8,4%Energía 7,9%Servicios de utilidad publica 7,8%Productos de consumo no Básico 5,3%Atención sanitaria 1,4%Liquidez 1,6%Fuente : Pictet Funds

DISTRIBUCIÓN POR PAÍSESChina 16,3%Taiwán 14,7%Brasil 13,1%Corea Del Sur 11,0%Africa Del Sur 6,7%Malasia 6,3%Indonesia 5,2%Chile 4,6%México 4,2%Tailandia 3,2%Otros 13,1%Liquidez 1,6%Fuente : Pictet Funds

LAS 10 POSICIONES MÁS IMPORTANTESTaiwan Semiconductor 2,4%China Construction Bank 2,1%China Mobile 1,9%Bank of China 1,3%Enersis 1,2%China Minsheng Banking 'H' 1,2%Bancolombia Priv. 1,2%Coca-Cola Femsa 'L' 1,2%Perusahaan Gas Negara 'B' 1,1%Uni-President Enterprises 1,1%Fuente : Pictet Funds




OBJETIVO DE INVERSIÓN


RESULTADO vs. MSCI EMFondo Indice Fondo Indice

AnualizadoAcumuladoYTD 0,99% -0,88% - -1 mes 1,38% 0,75% - -3 meses -0,50% -2,23% - -1 año 5,18% 3,97% 5,18% 3,97%Desde inicio 3,48% 2,73% 3,21% 2,52%Fuente : Pictet Funds

INFORMACIÓN TÉCNICAValor liquidativo USD 103,48 Dividendos ReinvertidosPatrimonio (mio) USD 69,7 Títulos en cartera 225Alza máxima 22,0% Baja máxima -14,0%Fuente : Pictet Funds

INFORMACIÓN GENERALGestor Laurent NguyenBanco depositario Pictet & Cie (Europe) S.A.Estatuto jurídico Compartimento de la SICAV de derecho luxemburgués


SGFecha de constitución 30 marzo 2012Cierre del ejercicio 30 septiembreMulticlase SíCálculo NAV Diario, "forward pricing"Comisión de gestión 0,80% p.a.TER 1,36% p.a.Com. máx. suscr. 5,00% A favor del distribuidorCom. máx. reemb. 1,00% A favor del distribuidorISIN LU0725973548Bloomberg PTEMSIU LXFuente : Pictet Funds


Pictet-Emerging Markets Sustainable Equities-I USD

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RESULTADO INDEXADO




PLAZOS DE VENCIMIENTO10 años y más 4,2%7 - 10 años 6,9%5 - 7 años 28,8%3 - 5 años 42,8%1 - 3 años 1,5%< 1 año 15,8%Fuente : Pictet Funds

REPARTO POR RATINGNC (ef.y eq. Include) 2,8%Ba 3,5%Baa 16,5%A 1,8%Aa 47,1%Aaa 28,4%Fuente : Pictet Funds

DISTRIBUCIÓN POR MONEDAEUR 21,0%USD 10,7%JPY 10,0%CNY 9,8%CAD 7,8%AUD 6,6%MXN 5,4%GBP 4,8%TRY 3,5%Otros 20,5%Fuente : Pictet Funds




OBJETIVO DE INVERSIÓNEl compartimento pretende la revalorización del capital invirtiendo principalmente en unacartera diversificada de bonos emitidos o garantizados por gobiernos nacionales o locales,o por organismos supranacionales, y seleccionados utilizando un enfoque fundamental.Las inversiones pueden realizarse en todos los mercados.Fuente : Pictet Funds

RESULTADO vs. Citigroup WGBI All MatsFondo Indice Fondo Indice

AnualizadoAcumuladoYTD 0,35% -1,74% - -1 mes 1,60% 1,07% - -3 meses 0,50% -0,48% - -1 año 2,72% -1,07% 2,72% -1,07%Desde inicio 3,52% -1,36% 2,80% -1,09%Fuente : Pictet Funds

INFORMACIÓN TÉCNICAValor liquidativo USD 135,75 Dividendos ReinvertidosPatrimonio (mio) USD 66,1 Títulos en cartera 34Alza máxima 6,01% Baja máxima -3,06%Rendimiento medio 2,24% Cupón medio 3,92%Duracion 4,88 añosFuente : Pictet Funds

INFORMACIÓN GENERALGestor Mickael Benhaim, David BoppBanco depositario Pictet & Cie (Europe) S.A.Estatuto jurídico Compartimento de la SICAV de derecho luxemburgués


SGFecha de constitución 30 enero 2012Cierre del ejercicio 30 septiembreMulticlase SíCálculo NAV Diario, "forward pricing"Comisión de gestión 0,35% p.a.TER 0,60% p.a.Com. máx. suscr. 5,00% A favor del distribuidorCom. máx. reemb. 1,00% A favor del distribuidorISIN LU0725946650Bloomberg PGBDFIU LXFuente : Pictet Funds


Pictet-Global Bonds Fundamental-I USD

La duración se refiere a la duración modificada ponderada del fondo. 1 / 2

RESULTADO INDEXADO




REPARTO POR SECTORESServicios de la cadena de suministro 44,6%Insumos agricolas 38,8%Cultivo 13,4%Liquidez 3,2%Fuente : Pictet Funds

DISTRIBUCIÓN POR PAÍSESEstados Unidos 39,7%Canada 11,5%Suiza 8,6%Japón 4,9%Gran Bretaña 4,5%Noruega 4,2%China 3,6%Alemania 2,9%Singapur 2,1%Malasia 2,1%Otros 12,7%Liquidez 3,2%Fuente : Pictet Funds

LAS 10 POSICIONES MÁS IMPORTANTESPotash Corp. of Saskatchewan 5,0%Deere 4,8%Syngenta 4,5%Archer Daniels Midland 4,3%Bunge 4,0%SysCo 4,0%Mccormick -Nvtg- 3,6%Mosaic 3,3%Ingredion 3,2%Yara International 2,9%Fuente : Pictet Funds




OBJETIVO DE INVERSIÓNEl compartimento tiene por objetivo el crecimiento del capital invirtiendo principalmente enuna cartera diversificada de acciones de empresas activas en la cadena de valor de laagricultura. El compartimento se centra en las empresas que se dedican en particular a laproducción, el procesamiento, el abastecimiento y a la fabricación de maquinaria agrícola.El universo de inversión no se limita a una zona geográfica concreta.Fuente : Pictet Funds

RESULTADO vs. MSCI WorldFondo Indice Fondo Indice

AnualizadoAcumuladoYTD 6,65% 11,1% - -1 mes -2,13% 0,47% - -3 meses 4,56% 8,87% - -1 año 13,3% 17,2% 13,3% 17,2%3 años 21,9% 32,7% 6,82% 9,90%Desde inicio 61,6% 77,6% 13,0% 15,8%


2012 14,3% 14,0% 13,3% 17,2%2011 -15,5% -2,38% -3,95% 6,90%2010 28,7% 19,5% 12,0% 5,98%Fuente : Pictet Funds

INFORMACIÓN TÉCNICAValor liquidativo EUR 161,58 Dividendos ReinvertidosPatrimonio (mio) EUR 227 Títulos en cartera 69Alza máxima 40,7% Baja máxima -27,8%Volatilidad 13,0% Tracking error 9,06%Sharpe ratio 0,45 Information ratio -0,31Alpha Jensen -2,59% Beta 0,97Correlación 0,72 R cuadrado 0,52Fuente : Pictet Funds

INFORMACIÓN GENERALGestor Gerardus van der Geer, Cédric LecampBanco depositario Pictet & Cie (Europe) S.A.Estatuto jurídico Compartimento de la SICAV de derecho luxemburgués

PictetLugar de registro AT, CH, CY, DE, ES, FI, FR, GB, GR, HK, LI, LU, MO,

NL, PT, SE, SGFecha de constitución 28 mayo 2009Cierre del ejercicio 30 septiembreMulticlase SíCálculo NAV Diario, "forward pricing"Comisión de gestión 0,80% p.a.TER 1,18% p.a.Com. máx. suscr. 5,00% A favor del distribuidorCom. máx. reemb. 1,00% A favor del distribuidorISIN LU0366533882Bloomberg PFLAGRI LXFuente : Pictet Funds


Pictet-Agriculture-I EUR

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RESULTADO INDEXADO




REPARTO POR SECTORESEficiencia energética 58,2%Gas natural 32,2%Hidroelectricidad 2,9%Otros 2,3%Liquidez 4,4%Fuente : Pictet Funds

DISTRIBUCIÓN POR PAÍSESEstados Unidos 50,9%Francia 6,4%Taiwán 5,1%Gran Bretaña 4,6%Canada 4,6%Japón 4,5%Alemania 4,3%Italia 3,2%Otros 12,0%Liquidez 4,5%Fuente : Pictet Funds

LAS 10 POSICIONES MÁS IMPORTANTESITC Holdings 4,2%Praxair 3,3%Sempra Energy 3,2%Delta Electronics Industrial 3,2%ENN Energy Holdings 3,0%Spectra Energy 3,0%Linde 3,0%L'Air Liquide 2,8%Tokyo Gas 2,6%Williams Companies 2,5%Fuente : Pictet Funds




OBJETIVO DE INVERSIÓNEl compartimento tiene por objetivo el crecimiento del capital invirtiendo como mínimo dostercios de su patrimonio total en acciones de empresas del mundo entero que contribuyana y se beneficien de la transición a energías que generen menos emisiones de CO2. Elcompartimento se centra en empresas activas en el campo de los recursos y lasinfraestructuras más limpias, los equipos y las tecnologías que reducen las emisiones deCO2, la generación, transmisión y distribución de energía más limpia y la eficienciaenergética.Fuente : Pictet Funds


AnualizadoAcumuladoYTD 9,70% 11,1% - -1 mes 1,77% 3,15% - -3 meses 5,04% 5,74% - -1 año 7,47% 16,7% 7,47% 16,7%3 años -11,7% 31,6% -4,05% 9,59%5 años -40,0% 9,40% -9,72% 1,81%Desde inicio -27,1% 5,51% -5,12% 0,90%


2012 4,36% 15,8% 7,47% 16,7%2011 -20,6% -5,54% -23,5% -4,63%2010 -7,85% 11,5% 7,41% 18,3%2009 48,4% 30,9% 31,3% 37,0%2008 -56,6% -41,2% -48,3% -39,3%Fuente : Pictet Funds

INFORMACIÓN TÉCNICAValor liquidativo USD 72,95 Dividendos ReinvertidosPatrimonio (mio) USD 297 Títulos en cartera 51Alza máxima 27,4% Baja máxima -34,1%Volatilidad 19,6% Tracking error 7,52%Sharpe ratio -0,23 Information ratio -1,77Alpha Jensen -14,1% Beta 1,09Correlación 0,93 R cuadrado 0,86Fuente : Pictet Funds

INFORMACIÓN GENERALGestor Luciano Diana, Xavier CholletBanco depositario Pictet & Cie (Europe) S.A.Estatuto jurídico Compartimento de la SICAV de derecho luxemburgués

PictetLugar de registro AT, CH, CL, CY, DE, ES, FI, FR, GB, GR, HK, LI, LU, MO,

NL, PE, PT, SE, SGFecha de constitución 14 mayo 2007Cierre del ejercicio 30 septiembreMulticlase SíCálculo NAV Diario, "forward pricing"Comisión de gestión 0,80% p.a.TER 1,07% p.a.Com. máx. suscr. 5,00% A favor del distribuidorCom. máx. reemb. 1,00% A favor del distribuidorISIN LU0280430405Bloomberg PFLCLNI LXFuente : Pictet Funds


Pictet-Clean Energy-I USD

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RESULTADO INDEXADO




REPARTO POR SECTORESIndustrial 28,0%Servicios de utilidad publica 23,0%Materiales 18,0%Productos de consumo 9,5%Energía 5,6%Finanzas 4,7%Tecnología de la información 4,2%Productos de consumo no Básico 3,4%Liquidez 3,6%Fuente : Pictet Funds

DISTRIBUCIÓN POR PAÍSESEstados Unidos 46,4%Gran Bretaña 6,0%Canada 5,9%Brasil 5,7%Francia 4,4%Suiza 3,6%Japón 3,5%China 3,2%Otros 17,7%Liquidez 3,6%Fuente : Pictet Funds

LAS 10 POSICIONES MÁS IMPORTANTESAmerican Water Works 1,7%Danaher 1,4%ITC Holdings 1,4%Suez Environnement 1,2%Sabesp 1,2%Clean Harbors 1,2%Aqua America 1,1%Pennon Group 1,1%Praxair 1,1%Rayonier REIT 1,1%Fuente : Pictet Funds




OBJETIVO DE INVERSIÓNEl compartimento tiene por objetivo el crecimiento del capital invirtiendo como mínimo dostercios de su patrimonio total en acciones de empresas de acuerdo con las inversiones delos fondos de tipo abierto de Pictet especializados en temas medioambientales. Cada temaestá sujeto a ponderaciones fijadas estratégicamente y reajustadas cada mes. El universode inversión no se limita a una zona geográfica concreta.Fuente : Pictet Funds


AnualizadoAcumuladoYTD 9,90% 11,1% - -1 mes -1,71% 0,47% - -3 meses 7,73% 8,87% - -1 año 14,4% 17,2% 14,4% 17,2%Desde inicio 15,3% 32,6% 5,47% 11,1%


2012 12,3% 14,0% 14,4% 17,2%2011 -11,6% -2,38% -2,63% 6,90%Fuente : Pictet Funds

INFORMACIÓN TÉCNICAValor liquidativo EUR 115,26 Dividendos ReinvertidosPatrimonio (mio) EUR 24,0 Títulos en cartera 229Alza máxima 41,2% Baja máxima -24,3%Fuente : Pictet Funds

INFORMACIÓN GENERALGestor Philippe RohnerBanco depositario Pictet & Cie (Europe) S.A.Estatuto jurídico Compartimento de la SICAV de derecho luxemburgués


NL, PT, SE, SGFecha de constitución 10 septiembre 2010Cierre del ejercicio 30 septiembreMulticlase SíCálculo NAV Diario, "forward pricing"Comisión de gestión 0,80% p.a.TER 1,12% p.a.Com. máx. suscr. 5,00% A favor del distribuidorCom. máx. reemb. 1,00% A favor del distribuidorISIN LU0503631631Bloomberg PIEMSIE LXFuente : Pictet Funds


Pictet-Environmental Megatrend Selection-I EUR

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RESULTADO INDEXADO




REPARTO POR SECTORESValor Madera Puro 29,9%Valor Madera Medio 27,0%Valor Madera Bajo 24,4%Valor Madera Alto 14,8%Liquidez 3,9%Fuente : Pictet Funds

DISTRIBUCIÓN POR PAÍSESEstados Unidos 47,9%Brasil 13,5%Canada 8,5%Suecia 5,5%Gran Bretaña 4,9%Chile 4,5%Japón 2,3%China 2,0%Otros 7,0%Liquidez 3,9%Fuente : Pictet Funds

LAS 10 POSICIONES MÁS IMPORTANTESRayonier REIT 6,6%Weyerhaeuser 6,6%Plum Creek Timber 6,4%Svenska Cellulosa 4,6%Potlatch Corp 4,4%Mondi (GBP) 4,2%Klabin PFD 4,1%Fibria Celulose 3,8%Deltic Timber 3,5%Duratex 3,1%Fuente : Pictet Funds




OBJETIVO DE INVERSIÓNEl compartimento tiene por objetivo el crecimiento del capital invirtiendo como mínimo dostercios de su patrimonio total en una cartera diversificada de acciones de empresas que sedediquen a la financiación, la plantación y la gestión de bosques y de zonas forestales y/oal tratamiento, la producción y la distribución de la madera y otros servicios y productosderivados de la madera. El universo de inversión no se limita a una zona geográficaconcreta.Fuente : Pictet Funds


AnualizadoAcumuladoYTD 11,3% 11,1% - -1 mes -1,04% 3,15% - -3 meses 3,93% 5,74% - -1 año 31,9% 16,7% 31,9% 16,7%3 años 32,7% 31,6% 9,90% 9,59%Desde inicio 51,7% 40,4% 9,52% 7,69%


2012 30,6% 15,8% 31,9% 16,7%2011 -13,8% -5,54% -16,2% -4,63%2010 12,5% 11,8% 20,1% 18,3%2009 59,5% 30,6% 55,7% 37,0%Fuente : Pictet Funds

INFORMACIÓN TÉCNICAValor liquidativo USD 151,74 Dividendos ReinvertidosPatrimonio (mio) USD 706 Títulos en cartera 54Alza máxima 68,1% Baja máxima -33,8%Volatilidad 20,0% Tracking error 8,40%Fuente : Pictet Funds

INFORMACIÓN GENERALGestor Gabriel Micheli, Christoph ButzBanco depositario Pictet & Cie (Europe) S.A.Estatuto jurídico Compartimento de la SICAV de derecho luxemburgués


NL, PT, SE, SGFecha de constitución 29 septiembre 2008Cierre del ejercicio 30 septiembreMulticlase SíCálculo NAV Diario, "forward pricing"Comisión de gestión 0,80% p.a.TER 1,17% p.a.Com. máx. suscr. 5,00% A favor del distribuidorCom. máx. reemb. 1,00% A favor del distribuidorISIN LU0340557262Bloomberg PFLTMBI LXFuente : Pictet Funds


Pictet-Timber-I USD

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RESULTADO INDEXADO




REPARTO POR SECTORESAbastecimiento y tratamiento del agua 42,8%Tecnología relacionada con el agua 40,1%Servicios medioambientales 15,0%Liquidez 2,1%Fuente : Pictet Funds

DISTRIBUCIÓN POR PAÍSESEstados Unidos 44,1%Gran Bretaña 8,9%Brasil 8,4%Francia 6,7%Suiza 4,6%China 3,7%Canada 3,3%Japón 2,5%Otros 15,7%Liquidez 2,1%Fuente : Pictet Funds

LAS 10 POSICIONES MÁS IMPORTANTESAmerican Water Works 5,1%Sabesp 4,7%Danaher 4,3%Suez Environnement 3,6%Clean Harbors 3,5%Pennon Group 3,4%Aqua America 3,3%Roper Industries 3,1%Veolia Environnement 3,0%Xylem 3,0%Fuente : Pictet Funds




OBJETIVO DE INVERSIÓNEl compartimento tiene por objetivo el crecimiento del capital invirtiendo como mínimo dostercios de su patrimonio total en acciones de empresas del mundo entero activas en elsector del agua y del aire. El compartimento se centra en empresas que se dedican alabastecimiento de agua, los servicios de tratamiento, la tecnología del agua, así como a losservicios medioambientales.Fuente : Pictet Funds


AnualizadoAcumuladoYTD 10,5% 11,1% - -1 mes -1,23% 0,47% - -3 meses 8,40% 8,87% - -1 año 13,2% 17,2% 13,2% 17,2%3 años 38,1% 32,7% 11,4% 9,90%5 años 37,5% 29,2% 6,57% 5,26%Desde inicio 103% 4,08% 5,48% 0,30%


2012 14,6% 14,0% 13,2% 17,2%2011 -2,18% -2,38% 13,2% 6,90%2010 23,4% 19,5% 7,82% 5,98%2009 21,3% 28,7% 31,8% 36,5%2008 -33,5% -38,9% -24,5% -28,7%Fuente : Pictet Funds

INFORMACIÓN TÉCNICAValor liquidativo EUR 202,81 Dividendos ReinvertidosPatrimonio (mio) EUR 2.362 Títulos en cartera 57Alza máxima 49,1% Baja máxima -17,8%Volatilidad 9,56% Tracking error 6,27%Sharpe ratio 1,05 Information ratio 0,21Alpha Jensen 3,26% Beta 0,78Correlación 0,79 R cuadrado 0,62Fuente : Pictet Funds

INFORMACIÓN GENERALGestor Hans Peter Portner, Philippe Rohner, Arnaud BisschopBanco depositario Pictet & Cie (Europe) S.A.Estatuto jurídico Compartimento de la SICAV de derecho luxemburgués

PictetLugar de registro AT, CH, CL, CY, DE, ES, FI, FR, GB, GR, HK, LI, LU, MO,

NL, PE, PT, SE, SG, TWFecha de constitución 19 enero 2000Cierre del ejercicio 30 septiembreMulticlase SíCálculo NAV Diario, "forward pricing"Comisión de gestión 0,80% p.a.TER 1,12% p.a.Com. máx. suscr. 5,00% A favor del distribuidorCom. máx. reemb. 1,00% A favor del distribuidorISIN LU0104884605Bloomberg PICWAIA LXFuente : Pictet Funds


Pictet-Water-I EUR

1 / 2

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May 2013

Pictet-Water

2Pictet-Water For professional investors onlyPictet Asset

Management

Table of contents

1.

Investment case for Water

2.

Investment process & portfolio construction

3.

Portfolio positioning

4.

Current strategy and outlook

5.

Conclusions

6.

Technicals

Appendices

Investment case for Water

1


Management

25%

45%30%

Water stress > 40%

Water stress 20 - 40%

Water stress < 20%

The water challenge

Increasing water stress

How scarcity will affect GDP by 2050 Water stress indicator: withdrawal to availability ratio

19%

22%

59%

%GDP by level of water stress today

%GDP by level

of water stress 2050 business as usual

1995

2025

0 0.2 0.4 0.8Source: GRID-A, Vital Water Graphics

2, 2009 Source: GWI, Growing

Blue Initiative

low

stress mid

stress high

stress


Management

Why water ?

I. Challenge

An unsustainable statusquo…

•

total use of water increased 9X since 1900

•

driven by 3 very thirsty stakeholders

•

creating a water availability challenge

II. Industry

…leads to growth in water services industry…

•

Creating a USD 500bn market growing at 6% per year

•

Recycling a limited resource and protecting the environment

•

mostly owned and operated by public entities

III. Investment

…creating opportunities for equity investors

•

USD 1tr per year global investment needed

•

under improving political environment(s)

•

offering attractive risk adjusted returns


Management

I. Total water use increased 9X since 1900 and it’s not over !

Population is projected to grow

World population and water use Consumption

per capita –

Paris area, 1800-1960

Sources: FAOSTAT UN and UNESCO & WSSCC, WASH Facts and Figures and Water Atlas

0

100

200

300

400

500

600

1800 1820 1840 1860 1880 1900 1920 1940 1960

Wat

er u

se (L

/ ca

p / d

ay)

Source: Hydrol. Earth Syst. Sci. Discuss, 2007

•

and to concentrate in urban areas… •

with increasing wealth driving demand per capita


Management

I. Driven by 3 very thirsty stakeholders

Source: Pictet, United Nations Environment

Program (Vital Water Graphics)

Agriculture Industry Municipalities

Average water consumption breakdown 70% 20% 10%

Consumption range 60% -

80% 10% -

30% 5% -

15%

Consumption growth (2000-2050) 3x 2x 3x

Water quality (typical requirements) MinorPower: minor Process: customized quality

Drinking water

Cost of use Mostly subsidisedPower: none Process: high

Minor to high

(depending on subsidies)

Resource use Wasteful Efficient Variable

Demand efficiency technology (examples) Smart irrigationDry coolingWater recycling

MeteringLeak detection


Management

I. Creating a water availability challenge

Unsustainable status-quo

Level of water tables* in the US Only a quarter percent of world water usable

* Water table: The level below which the ground is completely saturated with water

Source: US Geological Survey

Fresh Water30%

UsableWater25%Fresh Water

3%

PollutedWater75%

Glacier &Perma

Snow Cover70%

Salt Water97%

0%

25%

50%

75%

100%

Total World Water Supply Fresh Water Supply Accessible Fresh WaterSupply

•

Freshwater resources are limited (“bio”-

infrastructure)•

And even more so by pollution•

As well as by faulty or lack of infrastructure

Source: UNESCO, 2002


Management

II. Creating a USD 500 bn

market growing at 6% per year

•

Water service providers offer:–

Treatment (disinfection, filtration…)

–

Delivery (via network)

•

The level of service depends on local circumstances:

–

Naturally sourced (green water)

–

Centralized (network and treatment)

–

Decentralized (network or treatment)

Fixednetwork

Mobilenetwork

Centrallymanaged

Utilities Packaged water

Tailored

(Point of use)Domestic/Commercial

Industrial

TreatmentDelivery

Irrigation equipment

2%

Point of use equipment

3%Industrial

Water5%

PackagedWater20%

Utilities70%

Global water market

$501bn in 2009

Source: Global Water Intelligence –

Water Technology markets 2010

Global water market overview

10Pictet-Water For professional investors onlyPictet Asset Management

II. Recycling a limited resource and protecting the environmentFour stages in the water value chain

Source: Sembcorp Industries –

Introduction to the Company -

2012


II. Mostly owned and operated by public entitiesGrowth in water services market

•

Water utilities are a natural monopoly

•

With increasing private sector participation

NorthAmerica

23%

18%

Middle- &South America

21%

8%

WesternEurope

47%

9%

Central &Eastern Europe

11%

19%

Middle East& Africa

6%7%

South East Asia

17%

11%World

13%

8%

2011Estimated additional share by 2025

6’991m

462m

476m

35m

2’161m2’160m

1’295m

321m

402m

Oceania

33%

12%

Middle &South Asia

1%4%

Source: Dr. David Lloyd Owen, 2011


III. USD 1 trillion per year Water infrastructure needed

Source: OECD / Morgan Stanley / Pictet Asset Management

USD 41 trillion needed in infrastructure over 2005-2030

57%

13%3%49%

34%

5%

12%

66%

14%1%

19%

56%

14%7%

23%

AfricaUSD 1.1trn

1%

Middle EastUSD 0.9trn

Asia/OceaniaUSD 15.9trn

EuropeUSD 9.2trn

Latin/South America

USD 7.5trn

North AmericaUSD 6.5trn

21%29%

49%

27%

26%

36%

17%

21%


III. Under improving political environment(s)The risk adjusted return for water infrastructure investment has not always been attractive for investors

The decoupling of regulation schemes from politics has led to reduced uncertainties and tariffs subsidies

Source: World Bank PPI data, Credit Suisse research

Source: Global Water Intelligence / OECD Global Water Tariff Survey 2007

Global water tariffs (per cubic meter)

Private sector investment in emerging markets in water, telcos, energy and transport (USD bn)

Water

Telcos

Energy

Transport


EU 27 water prices relative to total CPIEuro area water supply prices relative to total HCP

0%100%200%300%400%500%600%

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

Water Oil

III. Offering attractive risk adjusted returns

Creating opportunities for equity investors

Water tariffs: beating inflation

Growth and low volatilitySource: Credit Suisse research

Source: American States Water Annual reports -

Pictet

US water and sewerage prices relative to total CPIUS water supply prices relative to total CPI

Canadian water prices relative to headline CPI

US water prices have outperformed headline CPI by

8% over the past 2 years


Conclusion -

why invest in water ?

Water –

an attractive risk return profile

An unsustainable status quo

Leads to growth in water services market

Creating opportunities for equity investors

Investment process & portfolio construction

2


Investment team

Periodic board to review industry developments

ADVISORY BOARD

Hans Peter Portner

Senior Investment Manager

Head of Sector & Theme Funds

Philippe Rohner

Senior Investment Manager

Arnaud Bisschop

Senior

Investment Manager

INVESTMENT MANAGERS

Daily meetings and exchange of ideas via internal chat system

PAM EQUITY RESEARCH

EMERGING MARKETSDEVELOPED MARKETS SMALL CAP TEAM

Scoring input UtilitiesKaren Kharmandarian

Hans Peter Portner

Water TechnologyPhilippe Rohner

Cédric Lecamp

Arnaud Bisschop

Environmental ServicesArnaud Bisschop

Hans Peter Portner


Pictet-Water investment process

STRATEGIC DEFINITION OF INVESTMENT THEMES

Semi-annual advisory board meeting

-

Review of recent fund performance

-

Update of industry growth trends

-

Topical discussions related to the themes

IDENTIFICATION OF INVESTMENT UNIVERSE

Database screening-

Identification of companies with relevant theme-

related activities

-

One formal review of the investment universe each year

CREATION AND MAINTENANCE OF INVESTABLE UNIVERSE

c.120 stocks

MANAGEMENT OF INVESTMENT PORTFOLIO

Quantitative screeningScreen of the investment universe for net sales, EBIT, EBITDA to determine the percent enterprise value of the overall group related to the theme and thus creating the investable universe of stocks

Portfolio construction

and stock selection

-

Screen & calibrate investable universe for purity, trading liquidity and share price vol. to determine initial portfolio weights

-

Score all stocks with initial weight > 0

-

Screen top quartile, then score stocks with initial weight ≤

0

c.810 companies

€

2,080bn market cap c.340 companies€

460bn market cap c.50-80 stocks

PICTET-WATER FUND


American Water stock examplePurity factor:

No deduction as 100% of AWK’s activity is water related

Portfolio construction factor:•

3.1% adjustment for liquidity, as % of fund bought in 15 days, at 20% volume is below 5% (roughly 2.5%)

•

No deduction as annualised volatility of 16.4% is lower than universe median of 29.2%

Company factor:

1.7 % due to good business franchise (score +1.1), strong management score (score 2.0) and strong attractiveness (score +2.0).

Score = 1.1*30% + 2.0*20% + 2.0*50% = +1.7%

Industry factor:No discount as industry fundamentalsare positive

Investment process example

* Purity, liquidity, volatility and calibrated. The sum of initial weights is calibrated to 50% on a pro rata basis and is a function of the sustainable fund size and the structure of the investable universe

Source: Pictet Asset Management, as of 30/09/12

2.9

3.106.0

1.7 4.70.0

0

1

2

3

4

5

6

7

8

9

Star

ting

weig

ht

Purit

y fac

tor

Port

folio

co

nstr

uctio

n fa

ctor Initi

al

weig

ht*

Com

pany

fact

or

Indu

stry

fact

or

Port

folio

wei

ght

%

Portfolio positioning

3


Portfolio positioning (1)


Geographic breakdown Market cap breakdown

Market cap

Micro & Small < EUR 1 bn

Medium > EUR 1 bn

Large >

EUR 5 bn


Portfolio positioning (2)


Sector segmentation Water Market segmentation

Water supply –

43%

Water Technology –

40%

Environmental Services –

15%

Supply –

11%

Demand Municipal –

61%

Demand Industrial –

26%

Demand Agriculture –

0.5%


Recent significant actions in the fund (> I0.4%I)


43% 41%

41% 40%

15% 16%

0%

20%

40%

60%

80%

100%

31.03.2012 31.03.2013

Cash

Environmental Services

Water Technology

Water Supply

49% 48%

26% 26%

3% 3%

21% 20%

0%

20%

40%

60%

80%

100%

31.03.2012 31.03.2013

Cash

Emerging

Japan

Europe

North America

Sector allocation

Geographic allocation

In the past year (31.03.12-31.03.13), we

Added to Clarcor (0.8%), Ecolab (0.4%), Waste Connections (0.6%), Pall (0.6%), Tetra Tech (0.4%), Aqua America (0.4%)

Started new positions

Alfa Laval (1.0%), Enel Green Power (0.8%), Metro Pacific (0.7%),AECOM (0.6%), Arcadis (0.4%),

Reduced CEMIG (-1.2%), Pennon (-0.9%), Donaldson (-0.5%), Danaher (-0.4%), Xylem (-0.4%)

Exited positions

Waste Management (-1.7%), Fortum (-1.3%), COPEL (-0.7%), Aegion (-0.6%), Rushydro (-0.6%), Toro (-0.6%), Valmont (-0.5%), Badger Meter (-0.5%), 2 non-meaningful positions in micro caps.

Corporate action

Take over of Elster (0.6%)


Company Domicile % in fund

Sector Market cap (€

bn)% Water Water Market

USA 5.1% Water Supply 5.6 100% Regulated operator

Brazil 4.7% Water Supply 7.2 100% Non Regulated operator

USA 4.2% Water Technology 31.4 20% Industrial

France 3.6% Water Supply 5.5 85% Non Regulated operator

USA 3.4% Environmental Services 2.6 75% Industrial

UK 3.4% Water Supply 2.9 95% Regulated operator

USA 3.3% Water Supply 3.4 100% Regulated operator

USA 3.0% Water Technology 8.9 20% Infrastructure

USA 3.0% Water Technology 3.9 100% Infrastructure

France 3.0% Water Supply 5.3 80% Non Regulated operator

Pictet-Water portfolio top 10 holdings

Source: Pictet Asset Management, as of 30/04/13Pictet 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 the Pictet and Pictet Funds trademarks. The trademarks, logos and images set out in this document are used only for the purpose of this presentation.

http://images.google.fr/imgres?imgurl=http://www.paulohenriqueamorim.com.br/wp-content/uploads/2009/01/sabesp1.gif&imgrefurl=http://www.paulohenriqueamorim.com.br/%3Fp%3D3572&usg=__hmqhH9hLNV-LBzG2g0AMrvvby5I=&h=380&w=570&sz=6&hl=fr&start=11&um=1&tbnid=fhX9Q1zFoEd-1M:&tbnh=89&tbnw=134&prev=/images%3Fq%3Dsabesp%2524%26hl%3Dfr%26sa%3DN%26um%3D1

http://www.amwater.com/


Management

The performance disclosed in this document is net of commissions charged to the Fund. The data does not take into account the subscription and redemption feesthat can be charged by our intermediaries w ithin the limits set forth in the prospectus o f the Fund.Source: Lipper monthly data, c reated with MPI Stylus as of 30.04.2013

Review

of performance


Management

Pictet-Water, an attractive risk/return profile

Source: Pictet Asset

Management, FactSet

since launch (Jan 2000 –

April 2013)

(*) Total return in EUR –

Dividend

reinvested

Current strategy and outlook

4


Management

Water industry developments

End-Market Exposure Water Services Applications Key Growth and Return Drivers Trend Previous

Supply 10-20%

0-10% Storage Hydroelectricity Electricity tariffs (-) –

Coal & Gas prices (-)

0-10% Pollution Control Landfill Volume growth (0) –

CPI (+) –

Recyclates prices (0) (A)

Consulting New Regulation (0) –

Municipal & Federal Budget (-) (B)

Demand 80-90%

Municipal 15-25% Centralized Regulated operator Regulator (0) –

Water tariffs (+) –

CPI (+)

15-25% Non regulated operator Outsourcing (+) –

Competition (-) –

CPI (+)

10-20% Infrastructure components New Regulation(0) –

Replacing assets(0) –

Input costs(0)

0-5% Decentralized Packaged Water Drinking water quality (0) –

Local brand awareness (-)

5-15% Point of Use Home starts (0) –

Remodeling & Repair (+) (C)

Industrial 20-30% Treatment Heating and Cooling Industrial Production (0)

Wastewater treatment New Regulation (+) –

Outsourcing (+)

Agriculture 0-5% Irrigation Crops, orchards, plantations

Weather –

Farm income levels (+)

Landscape Water availability (+) -

Home starts (+) (D)

(A) Rebound of recyclates prices and bottoming of waste volumes in the US -

(B) Fiscal cliff deal in the US -

(C) & (D) Construction market rebound in the US

Source: Pictet Asset Management, as of January 2013

29Pictet-Water For professional investors only

0.0 0.5 1.0 1.5 2.0

Cashflow growth (FY0-FY2)

Price to Cashflow FY1

Price to Book

Div Yield FY1 (%)

0.0 0.5 1.0 1.5 2.0



Price to Book

Div Yield FY1 (%)

0.0 0.5 1.0 1.5 2.0



Price to Book

Div Yield FY1 (%)

Pictet Asset Management

Fund attractiveness vs world equity markets

Cash3%

Water supply41%

Water Technology40%


16%

Source: Facset, Bloomberg,, Pictet Asset Management, as of 31/03/2013

Segment classification Water supply

Environmental services Water technologies

MSCIMSCI

MSCI


Historic valuation –

Pictet-Water vs MSCI World (starting 2005)

Source: Facset, Pictet Asset Management, as of 31/03/2013

•

At the end of March, the fund is trading at 10.1x P/CF and 2.5x P/B, with a dividend yield of 2.5%

•

The fund is trading slightly below the MSCI World, with a wider difference on P/B.

•

Current valuation metrics are roughly in line with historic average.

7.08.09.0

10.011.012.013.0


1.5

2.0

2.5

3.0

3.5

4.0

Dividend Yields FY1

2.0

2.4

2.8

3.2

3.6

4.0

Price to Book

MSCI World Average Fund

5. Conclusions


Conclusions

Water is a long horizon investment theme with above average visibility

Why Water?

•

Urbanization trends are increasing the demand for water related services

•

Over exploitation of natural water resources is turning water into a non-renewable resource

Why now?

•

Increased awareness of the need to invest in water related infrastructure

•

Increased willingness to outsource of an ancillary activities linked to water management

Why Pictet?

•

Unique investment universe and process

•

Extensive thematic fund experience

•

Proven track record

Technicals

6


Name:

Pictet-WaterLegal status:

compartment of the Pictet Luxembourg SICAV, UCITS compliantCurrency:

EURCalculation:

daily; settlement NAV + 3Inception:

20 January 2000Assets under mgmt:

EUR 2’362m as of April 30, 2013Dividend:

reinvested (I, P, R) or distributed (P dy)Benchmark:

MSCI World (net div reinvest)Share classes:

Technicals

* I-Shares: minimum investment EUR/USD 1’000’000Source: Pictet Funds as at 30/04/2013

Class ISIN MF*(%)Admin/

Custody TER

I EUR* LU0104884605 0.80 0.33 1.06I USD * LU0255980244 0.80 0.33 1.06P EUR LU0104884860 1.60 0.33 1.90

P USD LU0255980327 1.60 0.33 1.90

P dy EUR LU0208610294 1.60 0.33 1.90

R EUR LU0104885248 2.30 0.33 2.60

R USD LU0255980673 2.30 0.33 2.59

Appendices


Pictet-Water portfolio construction

6%

0%

-6%St

artin

g we

ight

Port

folio

co

nstr

uctio

nfa

ctor

Purit

y fa

ctor

Com

pany

fact

or

Initi

al w

eigh

t*

risk management active management

Port

folio

wei

ght

How do we determine the stock weight in the portfolio?

•

High degree of thematic related activities (purity)

•

High trading liquidity

•

Low price volatility

•

Attractive company fundamentals

•

Attractive industry fundamentals and market(s) dynamics

6%

From

0%

to 6

%

From

-3%

to

+3%

From

0%

to

+9%

Indu

stry

fact

or

Portfolio characteristics relative to MSCI World

* Purity, liquidity, volatility and calibrated. The sum of initial weights is calibrated to 40-60% on a pro rata basis and is a function of the sustainable ($500m) fund size and the structure of the investable universe

Max

. -6% M

ax. -

3%

Max

. -6%


Theme funds –

Management of investment portfolio

We prefer stocks with •

High thematic purity

•

High trading liquidity

•

Low price volatility

•

Attractive company fundamentals

•

Attractive industry and favourable market(s) dynamics

Portfolio weight •

= 6% -

adjustments for purity, liquidity, volatility = initial weight* +/-

company factor -

industry factor

Risk management •

Purity: limit -6% as a function of the size of theme-related exposure in each company

•

Portfolio construction: limit -6% as a function of the trading activity and stock price volatility

Active management •

Company: +/-

3% as a function of management, business franchise, equity attractiveness

•

Industry: limit -6% as a function of industry fundamentals / market(s) dynamics

Portfolio weight of each stock of the investment universe floats

between 0% and 9%

* The sum of initial weights is calibrated to 40-60% on a pro rata basis and is a function of the sustainable ($500m) fund size and the structure of the investable universe


Theme funds –

Company and industry factors

Company factor Decision weightings

Blue Chip* Opportunity

**

Management 20% 50%

Business franchise 30% 30%

Attractiveness of equities

–

Valuation

–

Momentum

50% 20%

* Initial weight > 0; ** Initial weight ≤

0

Growth at reasonable price

Industry factor

Industry fundamentals Input cost pressures

Capacity utilization

Pricing power erosion

Barriers to entry

Industry consolidation

Market(s) dynamics Supply / demand imbalances

Regulatory / political environment

Systematic risk aversion

We look for•

Solid management track record

•

Franchises with secular growth drivers

•

Attractive risk-adjusted return


Theme funds –

Company factor screening / scoring

We score the whole blue chip universe (initial weight > 0) for:

We screen the opportunity universe (initial weight ≤

0)for scoring:

•

Management ability to deliver•

Sustainability of the franchise associated with the investment theme•

Attractive equity valuation and share price momentum

•

Using a mix of financial metrics (which are theme specific)•

Selecting top quartiles stocks for further company factor analysis •

Scoring the stocks not currently in the portfolio (buy, “challenges”)

The process for screening and scoring ensures that the company factor for the entire investable universe is monitored systematically


Pictet-Water investment processFrom theme definition to investment portfolio

* The ‘Opportunities’

in the fund may include stocks that are not top quartile and may exclude top quartile names

MUNICIPAL -

INDUSTRIAL OUTSOURCING

WATER INFRASTRUCTURE INVESTMENT NEEDS

DECENTRALIZED WATER SERVICES ALTERNATIVES

DEFINITION OF INVESTMENT THEME

(Periodic Board meeting)

IDENTIFICATION

OF WATER

UNIVERSE

Database screening

Qualitative screening of world equity database of 40’000 companies

c.810 companies

€

2,080bn market cap

CREATION & MAINTENANCE OF INVESTABLE

Quantitative screening

20% of Water related Sales, EBITDA, or Enterprise Value

c.340 companies

€460bn market cap

RISK MANAGEMENT

Purity & portfolio construction factors Investable universe screening & calibration

c.340 stocks

ACTIVE MANAGEMENT

Company factor &industry factorInvestable universescoring•

Management•

Business franchise•

Attractiveness of equity

•

Industry fundamentals•

Market(s) dynamics

c.120 stocks

PICTET-WATER

c.50-80stocks

c. 30 Blue chip

c. 35* Opportunities

DETERMINATION OF

INITIAL WEIGHTS

ESTABLISHING OF

ACTIVE WEIGHTS

INDIVIDUAL

PORTFOLIO

WEIGHTS

MANAGEMENT OF INVESTMENT PORTFOLIO

Initial weight Stocks

> 0 ~ 35 Blue chip

≤

0~ 305Opportunities: screening of top quartile

Scoring ~ 35 stocks

Scoring ~ 85 stocks


From investment universe to investment portfolio

Source: Pictet Asset Management, January 2013

# of companies 11 46 22 106 41 60 69 45 76 75 101 108 - 14 10 27

Market Cap in Bn € 17 € 260 € 16 € 184 € 16 € 37 € 52 € 9 € 96 € 252 € 593 € 81 - € 217 € 94 € 156

Total # of companiesTotal Market Cap in Bn

# of companies 2 26 12 65 9 9 22 8 31 40 57 47 - 3 4 6

Market Cap in Bn €2 €69 €10 €109 €2 €4 €42 €6 €19 €50 €112 €25 - € € €9


# of companies - 8 4 8 - 1 7 - 2 8 15 6 - - - -

Market Cap in Bn - €44 €9 €21 - 1 €21 - €3 €30 €91 €6 - - - -


Water Exposure 811 Companies

Water Supply Environmental Services Water Technology Packaged WaterDevelopped Markets

Emerging Markets

Developped MarketsEmerging Markets


Developped MarketsEmerging MarketsAsia

North America

EuropeNorth

AmericaAsia Europe Asia Europe

North America

185 215 360 51

North America

Asia Europe

€ 477 € 114 € 1,022 € 466

Water Universe 341 Companies


Emerging Markets




North America

EuropeNorth


North America

105 48 175 13

North America

Asia Europe

€ 191 € 53 € 206 € 10

WaterFund Holdings 59 Companies


Emerging Markets




North America

EuropeNorth


North America

20 8 31 -

North America

Asia Europe

€ 74 € 22 € 130 -


Biographies

Hans Peter PortnerHead & Senior Investment ManagerSector & Theme Funds team

Hans Peter Portner joined Pictet Asset Management in 1997 and is Head of the Sector & Theme Funds team and also a Senior Investment Manager.

He began his investment career in 1992 with UBS Brinson in Basel as Portfolio Manager for international equities, where he managed single country funds and capital preservation funds. In 1997 he joined Pictet Asset Management in Geneva as Senior Investment Manager for international equities, role he pursued in London from 1999 to 2001.

Hans Peter is a Chartered Financial Analyst (CFA) charterholder and holds a Master’s degree in Economics from the University of Bern.

Philippe RohnerSenior Investment ManagerSector & Theme Funds team

Philippe Rohner joined Pictet Asset Management having originally joined Pictet & Cie in 1998 as an equity analyst with responsibility for the Swiss Chemicals sector. He is a Senior Investment Manager in the Sector & Theme Funds team.

Before joining Pictet, he worked in the Oil & Gas and later in the Chemicals industries with Texaco and Ciba-Geigy respectively, having held various operational and corporate level positions in Switzerland, the US and UK.

Philippe holds a PhD in Industrial and Applied Chemistry from the Swiss Federal Institute of Technology and an MBA specialising in Finance from the University of Strathclyde. He also completed a programme in Environmental Engineering at the University of Texas.

Arnaud BisschopSenior Investment ManagerSector & Theme Funds team

Arnaud Bisschop joined Pictet Asset Management in 2007 as an Investment Manager in the Sector and Theme Funds team. Before joining Pictet, he worked for Lyonnaise des Eaux (Suez Group) as a project leader in the Sales Department and previously was a Senior Consultant in the Sustainability Services Team of Ernst & Young in Paris.Arnaud graduated as an Engineer from the Ecole Polytechnique (Paris) and the Ecole Nationale du Genie Rural, des Eaux et des Forêts (Paris), holding Master of Science degrees.


Water markets are split over several MSCI sectors

MSCI Classification Sector segmentation Supply

Demand

Municipal Industrial AgricultureUtility

•

Water Utility

•

Electric Utility

Water supply

• Asset Sale UK / US

• Concessions

• Hydroelectricity X

X

X

Industrials

•

Capital Goods

•

Commercial& Professional Services

Materials

Cons Staples

Water Technology

• Filtration

• Components

• Engineering

• Chemicals

• Air filtration

• Measurement

• Irrigation

X

X

X

X

X

X

X

X

X

X

XIndustrials

Commercial Services


• Consulting

• Solid Waste Management X

X

Financial Market Segmentation

Water Market Segmentation


Pictet-Water fund –

MSCI breakdown

Portfolio characteristics relative to MSCI World


Long term trends


Water yesterday, today and tomorrow

EconomicsAgriculture

Water & sanitation

goals

Climatechange

2000–

World Water Vision –

universal access to water and sanitation (‘watsan’) by 2025 and even consider wastewater treatment

–

UN Millennium Development Goals –

Halve the numbers without access to safe watsan by 2015

2010–


Not mentioned anymore –

UN MDGs –

Partial progress

(problems in Sub-Saharan Africa and South Asia)

2020–


Ripe for revival, from sanitation to sewage treatment

–

UN MDGs –

Done, but need a new initiative

2000–

‘Water is free’

is the dominant mantra –

Minimal data

on water economics outside some OECD countries

2010–

Improved data availability (OECD, GWI, IB-Net, etc)–

Water financing problems become more pressing2020

–

Full cost recovery gains improved acceptance –

Proper comparative economic data is available

2000–

Subsidies encourage over-use of water –

Drip irrigation2010–

Water rights in Australia commoditize water –

Micro monitoring2020–

The Water Framework Directive –

everybody pays –

Water harvesting

2000–

Just starting to appreciate linkage between climate change and water

resources (lower availability and higher demand)

2010–

Security of supplies and storm water management become

real issues

2020–

Reconciling the EU Water Framework Directive with

climate change

–

Storm and foul sewers separated –

Water efficiency and reuse necessary for

security of supplies

–

Demand management a driver Politicalenvironment

Source: Dr David Lloyd Owen, Envisager –

03/2010



Waterrights

Privatesector

IndustrystructurePlayers

2000–

6% served by the private sector (15% in China)–

Protests at the 2000 and 2003 World Water Forum2010

–

12% served by the private sector (38% in China)–

Dialogue at the 2009 World Water Forum2020

–

18% served by the private sector (50% in China?) –

Can NGOs and the private sector pull together?

2000–

‘70% of PSP customers served by the ‘big five’–

Suez / Veolia / RWE / SAUR / Agbar2010

–

37% of PSP customers served by the ‘big five’–

RWE a local player again and SAUR split up –

Agbar absorbed into Suez –

New regional players (SABESP, Manila Water and JUSCO)2020

–

30% of PSP customers served by the ‘big five’–

Aqualia’s growth strategy–

Emergence of major Chinese players

2000–

70 companies–

Almost all in OECD countries2010–

157 companies –

Even balance between OECD and rest of the world –

China the major driver2020–

157 companies –

Even balance between OECD and rest of the world –

China the major driver

2000–

Some trading in the US–

Start of the Murray Darling markets2010–

Security of supplies and storm water management become

real issues

2020–

Water regarded as a commodity in appropriate

circumstances

–

Need to segregate investments from

applications?

Privateparticipation


03/2010



Engery Desalination

Waterscarcity and

management

Wastewatertreatment

2000–

Leakage management (targets in the UK) –

Supply management (reservoirs and desalination)2010

–

Smart / automated metering emerging2020

–

Demand management (tariffs and white goods) –

Water recovery and recycling –

Grey and rain water harvesting

2000–

Multiple Stage Flash distillation is the norm–

Cost $1.00-1.50 per m3 (low cost energy)2010

–

Reverse Osmosis and membrane bioreactors find favor –

Cost $0.45-0.80 per m3 (energy efficiency & recovery)2020

–

Waste heat condensers –

energy intensity is the issue –

Cost $0.40-0.80 per m3

2000–

Low energy costs and low need -

a relatively

low priority

2010–

Energy costs have tripled –

and more treatment

and pumping

–

Energy use monitoring & more efficient pumps2020–

Water management and climate change –

6% of UK’s greenhouse

gasses via methane, treatment and pumping

–

Sludge to energy & distributed sewage treatment

Industry developments

2000–

Membrane bioreactors emerging –

Secondary –

tertiary treatment is the norm (UWWTD)2010–

MBRs commoditized –

need more energy efficiency –

Tertiary –

advanced treatment becoming the norm2020–

Waste heat condensation –

optimize energy

efficiency

–

Specialist applications –

removal of drugs,

hormones etc


03/2010


Top 10 global water trends in 2020

Major trend 2010 2015 2020

1 Drinking water & sanitation needs

Driven by new build in Asia Pacific, Middle East, North Africa and Latin America

China, Latin America nears completion of basic sanitation infrastructure

India drives the global momentum of meeting millennium linked drinking and sanitation needs in developing countries

2 Water reuse & recycling Water stress driving water reuse in Middle East, Australia and US

Spain water reuse & recycling catalyses growth

China & India boost momentum Industrial sector, esp Power closing in municipal sector for water reuse

3 Biogas from wastewater Carbon footprint drives energy recovery particularly in industrial

Bio-solids concerns in municipal sector catalyse growth in Europe & US

Sludge generation in developing countries triggers biogas market

4 Bio-solids management Bio-solids steeps up concern in EU

Incinerators gain in popularity in Central Europe

Sludge dewatering continues to be the choice for developing countries

Asia Pacific emerges as the strongest market opportunity for bio-solids

5 Resource & nutrient reovery

Closed loop systems gain popularity particularly in sectors such as PV

Produced water sector for oil & gas establishes presences

Mines and minerals cement market opportunity for sustainable business models for recovery

6 Public health & water security

Concerns on chlorine by-products benefits non-

chlorine disinfectants such as UV

UV joined by Ozone, advanced oxidation as well as chlorine alternatives

Complex contaminants such as endocrine disruptors gain focal point

7 Smart water grids Leakage prevention and identification gains prominence with utilities

Smart meters and monitors deployed to secure better integration of performance

Smart water grids move East

8 Water trading Water stress drives water trading market in Australia and North America

Municipalities establish commercial links of selling treated wastewater to industry

Marketplace established for water trading between municipalities and commerce

9 Decentralized integrated sys

Decentralised systems’

market heats up in Southern, Central & Eastern Europe

Rainwater harvesting systems emerges strong market in Asia Pacific

Utilities begin to opt decentralised units in mega cities

10 Storm water management Europe & North America evaluate best options to tackle extreme weather events related flooding

Utilities opt for streamlining collection and storage/treatment/reuse/disposal; of storm water

Storm water management emerges as integral part of water resource management plans

Source : Frost&Sullivan, World‟s Top Global MegaTrends To 2020 and Implications to Business, Society and Cultures –

10/2010


Water and wastewater treatment technology

1980 1990 2000 2010 2020

Water & wastewater treatment

Water management

Water re-use & recycling

Sustainable solutions & services

Drinking water Municipal Wastewater

Bio solids management

Material, resource & energy recovery

Advanced WW treatment (ex. nutrient removal)

Water needs of developing countries

Turnkey

solutions

Storm water management

Re-use & recycling

Retrofit, replacement & upgrading

Membrane technology

Service outsourcing

Chemical free treatment

RO desalination Ballast water treatment

Sewerage

connection

Worldwide sanitization

Treatment systems for small communities

Source : Frost&Sullivan, World‟s Top Global MegaTrends To 2020 and Implications to Business, Society and Cultures –

10/2010

EVOLUTION OF WATER MANAGEMENT TECHNOLOGIES AND SOLUTIONS In

tegr

ated

wat

er m

anag

emen

t & s

ervi

ces

Top global sustainable trends in 2020


Emerging technologies in selected growth markets

Energy & resource recovery from ROdesalination plants-

ERI PX Pressure Exchanger

Biogas generation from wastewater

treatment-

Anaerobic digesters

Water reuse & recycling systems

market-

Membrane bioreactor systems

Chemical free water & wastewatertreatment-

UV & ozone

Source: Frost & sullivan, world‟s top global megatrends to 2020 and implications to business, society and cultures –

10/2010


5% 0.1%19%

17%

6%33%

2%

17%

Western Europe Eastern Europe/Central AsiaMiddle East/North America East Asia PacificSouth Asia North AmericaLatin America & Caribbean Sub-Saharan Africa

Water infrastructure market

We focus on services more than equipments

Rehabilitation and new resources development… Breakdown of infrastructure market by region

… more than new networks

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

50000

40000

30000

20000

10000

$m

New wastewater networksWater resources developmentWastewater network rehabillitationNew water networksWater network rehabillitation

Total Infrastructure

Market $935bn2010-16

Source: Global Water Intelligence –



Environmental regulation

US

Safe Drinking Water Act

Clean Water Act

Coal ash treatment

Water intake for cooling water

Europe

Water Framework Directive

Urban Wastewater Treatment

Lead connections to be replaced

No landfill policy in UK

China

12th 5-year plan focus on water resources and irrigation

Document N1

Increased targets for Wastewater treatment rates

Governments continue to show strong support to water preservation

Sample of Policies in major Economies


Municipal water value chain

c.4,000 companies around the world

CONSUMABLE

SUPPLIERS

c.250,000 entities, mostly public

OPERATORS

c.4,000 entities

SYSTEMS INTEGRATORS

c.20,000 entities

EQUIPMENT SUPPLIERS

Source: Pictet, Global Water Intelligence –


The core of our portfolio and our investment case

Segment Sub-segment Positioning

Water supply Regulated operators We look for stable regulation, attractive returns and sustainable yield

Non-reg. operators We look for track record and close relationship with municipalities

Water technology Systems integrators We look for track record and IP

Equipment suppliers We favour high margins company and growing end markets suppliers : monitoring, metering, filtration

Consumable suppliers We look for service oriented company vs commodity suppliers


M&A –

Sector attractiveness

Foreseeable M&A opportunities:

•

Accrued interest from Private Equity / Infrastructure funds in water assets (regulated utilities)

•

Multi-industry groups consolidate water assets

•

New players enter the water market

ConsolidatorsDanaher

General ElectricITT Corp.PentairSiemens

Potemtial takeout candidates

Treatment/Filtration Infrastucture Equipment

Pall (PLL, $6.4bil)

Nalco (NLC, $4.0bil)

Clarcor (CLC, $2.1bil)

Calgon Carbon (CCC, $1.0bil)

Tetra Tech (TTEK, $1.5bil)

Insituform (INSU, $1.0bil)

Badger Meter (BMI, $0.5bil)

Energy Recovery (ERII, $0.15bil)


M&A –

Valuations

Valuation multiples are drivenby the level of technologyinvolved

Water is a strategic defensivegrowth sector•

Relatively secular / low cyclical demand

•

Forecasted supply/demand imbalances

•

Quality pressure

Encourages consolidationin all sub-segments

Higher margins, higher barriers to entry, higher growth…

Water M&A valuations

Source graph: Citi Group «

Water sector handbook

»


M&A –

History

Source : Global Water Intelligence, January 2013


Regulation for ballast water treatment

•

International Maritime Organization (IMO) adopted International Convention for the Control and Management of Ships’

Ballast Water and Sediments (BWMC)

–

Sets framework for legislation for 169 Member States

–

With latest ratification, current parties to the BWMC total 33 representing 26.5% of the world’s tonnage

–

Ratification of the BWMC is pending, needing to reach 35% of the world’s tonnage (country threshold of 30 reached)

•

U.S. Coast Guard adopted the rule in March 2012

:

–

Phase 1 similar to the IMO standard

–

Phase 2, more stringent, will be evaluated as an option later

Issue: transfer of invasive species through ship ballast water


Ballast water treatment market

Total ballast water treatment systems market: compliance timeline of the IMO conventionProgressive Implementation from newly built to existing ships

Resulting in a 53% CAGR opportunity from 2009 to 2020

(world), 2009-2016

Total ballast water treatment systems market: revenue forecasts

(world), 2009-2020

Note: all figures are rounded; the base year is 2009Source –

Frost & Sullivan –

Ballast Water Market analysis

Source: The 5th annual ballast water management conference, London, 10 December 2009


Ballast water competitive landscapeTotal ballast water treatment systems market: competitive overview (world), 2009

COMPETITIVE ENVIRONMENT

Opportunityseekers <10 companies

Ship owners and ship builders4 companies

W&WW industry suppliers<10 companies

Start-ups dedicated to BTW<10 companies

Marine industry suppliers>10 companies

Industrial groups5 companies

Source: Frost & Sullivan

•

Small R&D initiatives focusing on development of BWT systems to sell it later on.

•

Small companies offering innovative technologies looking to apply them in the BWT systems market.

•

Competences in many industries (including marine) and market segments.

•

Continuous portfolio expansion and entries into new attractive markets like BWT.

•

International and regional (Asian) participants.

•

Providers of equipment/system and services for the marine industry.

•

Small and medium sized companies.•

Originate from various countries.

•

Large ship owners and ship builders from Asia that aim to omit intermediaries (independent BWT suppliers) and gain the market share alone leveraging their existing position in the industry.

•

Establish suppliers of the equipment/system and services for the water and wastewater industry.

•


•

Small start-up’s established over the lat decade to develop BWT systems. Supply of BWT is the only/core competence.

•

Some already acquired by larger companies.•



Shale gas development

Shale Gas resources change the Energy picture in the US Fracking is a water intensive process

Source –

Heckman Corporation, Company presentation


Shale gas regulation opportunities

Produced water are trucked-in to disposal wellsRegulation on water will offernew opportunities

•

Need of water for the whole well’s life :

–

Clean water to drill the well

–

Flowback Water (20% of the flow) in the first month

–

Produced Water (80% of the flow) over the whole life

•

Opportunities for :–

Infrastructure development,

–

Treatment technologies,–

Recycling services

Source –

STW Resources, Company presentation

Sustainability policy


Three levels of sustainability

EXCLUSION INCLUSION

ACTIVE

OWNERSHIP (engagement)

http://www.ethosfund.ch/default.asp


Exclusion

Avoid investments in companies that constitute unacceptable risk

of contributing to violations of fundamental humanitarian principles, serious violations of human rights, gross corruption or severe environmental damage

Maintenance of Blacklist with controversial companies, based on the most authoritative sources in the field, such as the Council on Ethics for the Government Pension Fund of Norway

Regular review and update of Blacklist by Pictet Sustainable Investment Board (SIB)


Inclusion

Invest only in companies with clear and strategic exposure to one of Pictet’s themes derived from the environmental megatrends -

Water, Clean Energy, Timber, Agriculture

Minimum exposure of 20 to 50% to particular theme required to be

eligible for inclusion in underlying theme; average exposure on underlying strategies goes up to 80%

Pictet’s investment management teams incorporate environmental, social and/or corporate governance issues and controversies, which may negatively impact a companies’

business franchise (long-term ability to generate cash flow) as part of investment process


Active ownership

•

Voting rights will be exercised selectively by Pictet, based on best corporate governance and sustainability practices

•

Engage companies in a dialogue with the aim to improve business standards and best practices in a particular industry

•

In the field of sustainability, Pictet cooperates with Geneva-based Ethos Foundation, a pioneer in Corporate Governance with a long-standing track record in this area. Ethos has been mandated to engage selected companies on behalf of Pictet

Voting rights and engagement are the two instruments used by Pictet to exercise active ownership


Ethos engagement process

ESG MONITORING

BEST PRACTICE AND

IMPROVEMENT

REQUIREMENTS

DIRECT CONTACTS WITH COMPANY

ETHOS RECOMMEN-

DATIONSENGAGEMENT EVALUATION


Ethos fund engagement overview

Examples of monitoring of ESG issues •

Child labour and health issues

•

Pollution and waste management

•

Controversial dam projects

•

Anti-competitive practices

•

Labour rights

Engagement objectives •

Focus on most exposed companies to ESG controversies

•

Engagement planned on at least a two years horizon per company

•

Stand-alone or collaborative initiatives (letters, visits, resolutions)

•

Voting rights used accordingly to engagement objectives

Ethos engagement recommendations •

Proposition of strategies to improve management of controversial

issues

•

If no reaction, disinvesting could be a way to protect value and

reputation of the fund according to its objectives

For further information, please visit our websites

www.pictet.com

www.pictetfunds.com

Pictet Asset Management

This marketing document is issued by Pictet Funds (Europe) S.A. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of 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, regulations, annual and semi-annual reports may be relied upon as fund the basis for investment decisions. These documents are available on www.pictetfunds.com

or at Pictet Funds (Europe) S.A., 3 Boulevard Royal, L-

2449 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 Funds (Europe) S.A. 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 neither guarantee nor a reliable indicator of future results. 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 for 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.

www.ethosfund.ch

[email protected]

Ethos

Case postale

CH - 1211 Genève 1

T +41 (0)22 716 15 55

F +41 (0)22 716 15 56

January 2012

REPORT ON THE SUSTAINABILITY

DIALOGUE WITH FIBRIA

Author

Simon Perrin, Senior Analyst

® © Ethos, January 2012. Any reproduction, in full or in part shall be subject to the prior consent of Ethos.

Any text quoted must reference the source.

Disclaimer

This report has been drawn up by Ethos Services based on information gathered from sources accessible to

investors and the general public, such as company reports and internet sites, as well as information

submitted directly by the companies. Despite multiple checks, the accuracy of this information cannot be

certified. Ethos Services shall not be held liable for the accuracy of the information published.

| 3

Pictet Asset Management (PAM) started to invest

in environmental themes in 2000, when it

launched the Pictet-Water investment fund. Since

then, it has launched three more environmental

theme funds, Pictet-Clean Energy (2007), Pictet-

Timber (2008) and Pictet-Agriculture (2009). In

2010, PAM launched the Pictet-Environmental

Megatrend Selection, which offers access to all

four themes in one single investment fund.

Fibria was included in the investment universe.

Pictet Asset Management has entrusted Ethos

with establishing a dialogue with the company on

environmental, social and governance (ESG)

issues that may possibly affect the investee

companies. Ethos proposed the two following

topics for dialogue, which Pictet Asset

Management then approved:

Human Rights and Security Policy: Fibria’s call

on private security forces in politically

sensitive regions where business activities are

conducted.

Supply Chain Management and Fibria’s

commitment to suppliers’ development.

The following document is a report dedicated to

the engagement activities Ethos has been

conducting with Fibria in 2011. It presents key

findings of Ethos’ assessment on Fibria’s

management of these two issues at stake.

For each of these topics, the report also includes

Ethos’ short global assessment, as well as key

recommendations to Pictet Asset Management

concerning the follow up of the dialogue with

Fibria. This first report is publicly available on both

Ethos’ and Pictet Asset Management’s websites.

Human Rights and Security Policy

In its first part, the report assesses the way Fibria

manages conflict issues when such problems

occur between security providers and local

communities. Ethos also highlights how the

company proceeds to prevent the occurring of

conflicts by easing tensions with local

communities.

Overall, the measures established by Fibria are

adequate to the difficult environment in which the

company operates. The assessment confirms that

Fibria is able to manage security issues as they

occur. Its responses have shown that the

company is making efforts to prevent security

issues. Its social inclusion approach, that still

needs to be fully implemented, is a very good

illustration of its commitment to developing and

maintaining good relationships with local

communities.

Ethos has made some key recommendations,

including the following:

The company should further enhance its

sustainability reporting, whose content is

considered very relevant, and focus more on

accidents and non-compliance cases that are

being investigated.

The company should report on data that

demonstrate the progress achieved in easing

tensions and having better relationships with

local communities.

Supply Chain Management

The second part of the report, dedicated to

Fibria’s supply chain management, assesses the

companies’ global policies in a first part. It then

focuses on the way Fibria deals with suppliers

who do not fully comply with the sustainability

requirements set out by the company.

Fibria has taken a severe stance against suppliers

who are found guilty of violating basic human

rights standards, such as child and forced labor. It

however recognizes the difficulty for small

suppliers to ensure the application of the

sustainability requirements. In order to maintain

long-term relationships with these suppliers, Fibria

is committed to helping them develop their

competencies so that they can get a higher

income and enjoy better living and working

conditions.

Ethos has made some key recommendations,

including the following:

Fibria should communicate more openly on its

supplier requirements and formalize them in a

single supplier code of conduct document,

publicly accessible on the corporate website.

The supplier code of conduct should then be

distributed to all the company’s suppliers.

Fibria should improve its communication on

remediation and action plans submitted to

non-compliant suppliers. It should give further

information that confirms its commitment

towards suppliers’ socio-economic

development.

Executive Summary

| 4

Conclusion

At this stage of the engagement with Fibria, it

appears to Ethos that the company is fully aware

of the remaining sustainability challenges lying

ahead and is fully committed to respond to them

with innovative and ambitious measures.

The steps taken so far are deemed credible and a

good number of them may be viewed as best

practices.

In spite of this comprehensive sustainability

strategy, in the short tem, some social problems

may still occur either among local communities or

along the supply chain. However, it is Ethos’

perception that Fibria is ready and equipped to

prevent and manage the occurrence of social

risks.

Moreover, given the openness to dialogue

demonstrated during the engagement, Ethos is

confident that Fibria is willing to consider

implementing the recommendations that have

been formulated in this report.

Ethos would recommend terminating the

engagement in 2012 with the company on these

two specific themes. However, it would be

relevant to have a further contact with the

company in 2013 to get a follow up of the projects

that are being implemented by the company.

Engagement Report: Executive Summary

Paraquat toxicity

www.ethosfund.ch

[email protected]

Ethos

PO Box

CH - 1211 Geneva 1

T +41 (0)22 716 15 55

F +41 (0)22 716 15 56

REPORT ON THE SUSTAINABILITY

DIALOGUE WITH SYNGENTA 2012 APRIL

Author

Simon Perrin, Senior Analyst

® © Ethos, April 2012. Any reproduction, in full or in part shall be subject to the prior consent of Ethos. Any

text quoted must reference the source.

Disclaimer

This report has been drawn up by Ethos Services based on information gathered from sources accessible to

investors and the general public, such as company reports and internet sites, as well as information

submitted directly by the companies. Despite multiple checks, the accuracy of this information cannot be

certified. Ethos Services shall not be held liable for the accuracy of the information published.

| 3

In 2009 Pictet Asset Management launched a

thematic Agriculture Fund and included Syngenta in

the investee companies’ universe. Pictet Asset

Management has entrusted Ethos with establishing

a dialogue with the company on some sensitive

issues that may possibly affect the reputation of the

fund.

The three following topics for dialogue were

proposed by Ethos and then accepted by Pictet

Asset Management:

• Syngenta’s supply chain management: child

labour among seed suppliers in India;

• Human security policy: Syngenta’s call on

private security forces in politically sensitive

regions where business activities are operated;

• Health and Safety: crop protection product

paraquat (Gramoxone) and damages caused to

users’ health in developing countries and is the

third report dedicated to the engagement

activities Ethos has been conducting with

Syngenta since 2009. It specifically focuses on

the paraquat theme.

The document is an update of Ethos’ first

engagement report on paraquat1.

A negative environment for the production and

marketing of paraquat

The report explores how several groups of

stakeholders, including states, corporations,

international organizations, are organizing

themselves to respond to the toxicity risks

associated with the misuse of paraquat.

Major recent trends, such as tougher international

rules and voluntary standards, actually demonstrate

that Syngenta’s license to operate is being more

and more questioned when it comes to the

production and marketing of paraquat in developing

countries.

In Ethos’ view, global context and the last

developments reflect a very unfavorable

1www.ethosfund.ch/e/inc/download.asp?folder=pub

lication&codefile=p335e_

environment for the further production and

marketing of the Gramoxone, especially in

developing countries where conditions are rarely

met for a safe use of paraquat.

The need of a new corporate strategy towards

paraquat

Syngenta has initiated comprehensive stewardship

programs all over the world. These programs,

designed for growers and conducted with the help

of expert partners, aim at educating them on the

best manner to safely handle the pesticide

products.

It is Ethos’ assessment that this stewardship

approach has so far failed to effectively address the

issue, in particular in developing countries, where

small farmers use paraquat under hazardous

conditions.

Therefore Ethos proposed that Syngenta rapidly

adopts an ambitious strategy that pursues a “zero

misuse” objective. Such a strategy would mean the

enforcement of a restricted access to paraquat

(Gramoxone). The access should actually be limited

to those users who can show evidence they are

fully protected, equipped and duly trained on the

use of the herbicide.

Ethos’ recommendation

Ethos recommends Pictet Asset Management to

continue the engagement with Syngenta provided

that:

• Syngenta considers an innovative approach

with regards to Gramoxone that is aligned on a

global “zero misuse” objective;

• Based on the restriction access model

developed in the United States, in a next

engagement round with Ethos, Syngenta

makes concrete proposals to initiate a new

strategy that deals with paraquat toxicity in

emerging countries.

Executive Summary

Engagement report

Themes: Sourcing of natural resources from Western Sahara

Company: Potash Corporation of Saskatchewan Inc.

ETHOS ENGAGEMENT –

PICTET ENVIRONMENTAL

MEGATREND SELECTION

www.ethosfund.ch

[email protected]

Ethos

PO Box

CH - 1211 Geneva 1

T +41 (0)22 716 15 55

F +41 (0)22 716 15 56

2012 OCTOBER

Author

Sybille Gianadda, Senior Analyst Joana de Brito, Analyst

® © Ethos, October 2012. Any reproduction, in full or in part shall be subject to the prior consent of Ethos. Any text quoted must reference the source.

Disclaimer

This report has been drawn up by Ethos Services based on information gathered from sources accessible to investors and the general public, such as company reports and internet sites, as well as information submitted directly by the companies. Despite multiple checks, the accuracy of this information cannot be certified. Ethos Services shall not be held liable for the accuracy of the information published.

Context

In December 2011, the Government Pension Funds of Norway decided to disinvest Potash Corporation of Saskatchewan Inc. (PotashCorp) over ethical concerns. The recommendation issued by the Council on Ethics points out two important conclusions on which the decision was based

1:

• The sourcing of phosphate from Western Sahara, in it current form, does not serve the socioeconomic interests of the Saharawi people.

• This sourcing support Morocco’s presence in the territory.

PotashCorp is included in the investment universe of the Pictet-Agriculture and the Pictet-Environmental Megatrend Selection funds. Pictet Asset Management has mandated Ethos to engage a dialogue with the company on environmental, social and governance (ESG) issues. Together with Pictet Asset Management, it was decided that Ethos would engage PotashCorp on the controversy related to phosphate sourcing from Western Sahara.

The following document is dedicated to the engagement activities that Ethos has been conducting with PotashCorp in 2012. It presents key findings of Ethos’ assessment on PotashCorp management of this issue at stake. The assessment is based on the material publicly disclosed by the company and on additional information that the company gave to Ethos via emails and during a conference call that took place in July 2012.

The report also includes Ethos’ key recommendations to Pictet Asset Management with regards to the continuation of the dialogue with PotashCorp. The executive summary of this engagement report is publicly available on both Ethos’ and Pictet Asset Management’s websites.

Issue at stake

In October 1975, Morocco invaded Western Sahara, a former Spanish colony, despite the International Court of Justice’s rejection of Morocco’s territorial claims over the territory. The UN Security Council strongly deplored this occupation and asked for an immediate withdrawal.

1www.regjeringen.no/pages/36470734/Rec_phospahte_ENG.pdf

The United Nations and the vast majority of States, including the United States, Canada and the EU, still do not recognize the Moroccan sovereignty over Western Sahara and have been urging for the right to self determination of the Saharawi people. Over the past decades, many UN resolutions have been strongly reaffirming the necessity to abide by this basic human rights principle.

Western Sahara is very rich in phosphate rocks, a natural resource that is exploited by a state-owned company, the Office Chérifien des Phosphates (OCP). PotashCorp currently purchases phosphate rock from this company.

Engagement

Ethos believes that PotashCorp’s sphere of influence extends to its suppliers, including OCP. It is thus the company’s responsibility to ensure that that the wishes and interest of Western Sahara’s local population are being respected.

PotashCorp acknowledges that the controversy creates a reputational risk for the company, but considers that OCP’s activities are undertaken in compliance with the applicable national and international laws.

The company has taken some steps to deal with the controversy over the sourcing of natural resources from Western Sahara. In particular, it has initiated a dialogue with OCP on the sustainability risks linked to its operations in the region. In addition, PotashCorp has started managing sustainability risks along its supply chain. Nonetheless, the company falls short of a formal management system to deal with sustainability issues in its supply chain in a systematic and transparent manner.

In light of this assessment, Ethos recommends that PotashCorp strengthen its supply chain management system. Ethos also recommends that PotashCorp further engage OCP on the development of credible and transparent Key Performance Indicators (KPIs) to measure the impacts of its operations in Western Sahara and on the disclosure of existing report which allegedly susbstantiate OCP’s positive impact on the region. Finally, Ethos recommends that PotashCorp establishes a common dialogue with OCP, together with other companies facing the same controversy.

At this stage of the engagement, it appears to Ethos that PotashCorp has demonstrated its openness to dialogue on the issue of sourcing

Executive Summary

4 |

phosphate rock from Western Sahara. Ethos thus recommends carrying this dialogue in 2013 with a focus on PotashCorp’s dialogue with OCP.

gestión isr en pictet modelo de gestión y engagement · los factores de riesgo están indicados...

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