Pictet Asset Management has rolled out a Luxembourg-domiciled fund that will invest in family owned businesses, where the founder or family holds a minimum of 30% of the voting rights.
The new Pictet-Family fund will target family-run businesses with a tendency to outperform the broader global equity market as well as show distinctive management styles.
The UCITS compliant strategy will have a diverse investment universe of nearly 500 large and small companies.
A Geneva-based team led by Alain Caffort and Cyril Benier will run the new vehicle.
Commenting on the new vehicle, Caffort noted: “Despite the fact that founder or family-controlled companies represent almost 20 per cent of the MSCI ACWI index, we found that there were very few investment approaches giving investors the opportunity to capitalise on the prominence and strengths of family businesses – especially within a global equity strategy.
“The Pictet-Family fund aims to fill that void.”
Pictet reported a 9% fall in consolidated net profit to CHF539m ($553m) in 2019.
The decrease is said to be driven by investment in staff and infrastructure.
The bank also said that it will end exposure to fossil fuel from its balance sheet.
This would include fossil fuel production and extraction, covering oil, gas as well as thermal coal.