Istanbul, the year 2000: 8.8 million residents.
Istanbul, the year 2026: 16.4 million residents.
Why invest in this trend?
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The global growth rate of cities is increasing.Young and developing cities, especially those located in emerging markets, require investment in basic infrastructure and construction: raw materials, concrete, construction machinery, etc.
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Greater growth, greater diversity in infrastructure.As cities grow, so do their infrastructure needs: telecommunication networks such as 5G, transportation, housing and social infrastructure such as hospitals and schools.
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Government policies support the sustainable growth of cities.These policies promote the development of cities, including the reduction of the level of contamination, an efficient consumption of resources, improvement of health care and better public infrastructures.
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Cities with higher population density and younger consumers.Young people with higher disposable income, the perfect ingredients for innovation and an entrepreneurial spirit.
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Increasingly large cities, which need larger essential infrastructures.Such as the development of large-scale transportation, airports and bridges.
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Hyperconnected cities.These are characterised by a broad use of technologies, from the cloud to wireless networks to guarantee a more economically efficient management.
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Cities where cars have their days numbered.For short journeys, cars will be replaced by travelling on foot, bicycle or public transport; for long journeys, electric and self-driving vehicles will be the preferred mode of transport.
One objective: energy self-sufficiency:
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Reduction of environmental impact through sensors.Sensors that monitor the use of available resources and pollution.
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Investment in low emission infrastructures.Public transport, renewable energy, efficiency in commercial buildings and good waste management could reduce the energy costs of cities by more than 17 billion dollars by 2050.
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Innovation and technological development.New ideas and technology for new cities: deliveries made by drones, use of seawater to reduce the temperature of houses, connected trains, smart traffic lights to reduce traffic jams or the use of remote controls to manage our homes.
Cities and megacities in figures: 80% of world GDP is generated by cities.
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UN data:The UN predicts that by 2030 the world will be home to 43 megacities with more than 10 million inhabitants. If this happens, there will only be fertile ground for growth by driving innovation.
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World Bank data:58% of the population currently lives in cities, and it is expected that by 2050 this figure will reach 70%, with the consequent increase in GDP.
Our investment proposal focuses on companies that contribute to global urbanisation or that we know benefit from it. Companies that operate in sectors such as mobility, infrastructures or sustainable resource management, mainly highlighting:
- Companies that contribute to a better quality of life in cities through the application of new technologies.
- Companies dedicated to managing the city, building the city and living in the city.
What do the experts think?
- According to the UN, by 2050 close to 70% of the world population will live in cities, forcing them to be redeveloped, with a change in the construction model that involves the industrialisation of the sector and greater needs for waste management, water, traffic and communications.
- An OECD report estimates that by 2030, investment needs in energy, transport, water and telecommunications infrastructure, without taking climate considerations into account, will reach as much as 6.3 trillion dollars a year.
- A recent report from the Global Commission on the Economy and Climate found that investing in low-emission public transport, using more renewable energy, and increasing efficiency in commercial buildings and waste management in cities could lower costs worldwide by about USD 17 trillion by 2050, as well as reducing the time spent commuting to and from work and improving overall quality of life.
IMPORTANT INFORMATION
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SEE SUMMARY IN ENGLISH OF THE INVESTOR RIGHTS OF THE PICTET - SMARTCITY FUND
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SEE SUMMARY IN SPANISH OF THE RIGHTS OF INVESTORS IN THE BANKINTER PLATEA MEGATENDENCIAS FUND
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The Key Investor Information Document and the prospectus are available on the website of the investment manager: Bankinter.com; Pictet AM España - Pictet Asset Management.
More information on this products can be found on the website of the investment manager: Bankinter.com; Pictet AM España - Pictet Asset Management. -
This is an advertising communication. Please refer to the UCITS prospectus and key investor information document before making a final investment decision. The fund managers may decide to stop marketing the funds in the situations provided for in applicable legislation, in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU.
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The Pictet - Smart City Fund is a sub-fund of Pictet AM, authorised in Luxembourg, regulated by the Commission de Surveillance du Secteur Financier (CSSF) and registered with the CNMV under number 194.
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The BANKINTER PLATEA MEGATENDENCIAS fund is a fund from Bankinter Gestión de Activos, S.A., SGIIC authorised in Spain and regulated by the CNMV, with which it is registered as number 5408.
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The CIS promotes environmental, social and governance (ESG) criteria under Article 8 of Regulation (EU) 2019/2088 on the disclosure of information related to sustainability in the financial services sector, also known by the English acronym SFDR, and is subject to sustainability risk, as defined in the risk profile. Decisions to invest in this fund must consider all of the characteristics and objectives of the fund.
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See information on aspects related to sustainability: Sustainability Plan | Bankinter Corporate Website.