Pictet Funds, the fund distribution unit of Swiss bank Pictet & Cie, has launched the PF(Lux) Global Megatrends Selection Fund. The fund will make equally weighted investments across eight sectors, or "megatrends", which management has identified as having the potential for long-term growth, regardless of short term or speculative fluctuation.

The sectors concerned currently include generics, biotechnology, security, premium goods, timber, clean energy and digital communications. But, as the fund will be rebalanced on a monthly basis, new investment ideas will be added to the portfolio and outdated ones removed, as deemed appropriate.

“This rebalancing also means that each month there is automatic replacement of overpriced themes by those which are undervalued. It also means that the fund will incorporate a high and increasing level of diversification across markets,” portfolio manager Hans Peter Portner said in a statement.

“I wouldn’t be surprised if this product was €1 billion ($1.6 billion) in size within 12 months, under normal market conditions,” said Paul Gaston, head of UK sales.

“The fund should provide an opportunity to outperform global equity markets and the concept is very simple, which makes it even more attractive, given recent developments with complex products,” he added.

Currently in its marketing period, the fund will invest in the underlying portfolios of Pictet’s eight existent thematic funds. It will not be structured as a fund of funds, thereby avoiding the impact of dual pricing on performance.

The fund will instead be structured as having a single manager fee, and will allow investors to access Pictet’s sector funds.

Pictet Funds is owned by Pictet & Cie, which oversees about SFr365 billion ($325 billion) of assets under management and custody.