The $197.4m product looks to maximise its returns by investing in companies that help to secure the integrity, health and freedom of individuals, companies and governments all over the world.
Although its remit is relatively niche, Kramer says the €400bn market presents the fund with plenty of opportunities to beat its MSCI World benchmark.
The portfolio is split between three types of stock: IT security, security services, and physical security products.
"The evolution of society has meant that security solutions are becoming more and more important in everyday life," he said.
"Everywhere you look, security plays a big part – in physical products like surveillance cameras or alarm systems, in software that combats internet crime, and so on."
"Governments are cutting back on expenditure in many areas, but security is one of the very few sectors that have not been cut. If anything, security is a growing market."
According to FE Analytics data, Pictet Security has returned 32.49 per cent since it was launched in October 2006, outperforming its benchmark by 28.61 per cent. The fund has also outperformed its sector over one- and three-year periods.
Performance of fund vs index over 5-yrs
Source: FE Analytics
The fund is also less volatile than its MSCI World benchmark, and with an FE Risk Score of 98, it is less risky than the FTSE 100.
Kramer says the fund is able to minimise volatility by altering its exposure to security products, which tend to be more sensitive to the economic cycle.
In down markets, the fund tends to be more heavily invested in non-cyclical services companies, but the managers increase their exposure to physical products when they are more optimistic about the macro outlook.
During the downturn in 2008 for example, Kramer says the fund had little exposure to security products. This weighting has increased in the past three years to 28 per cent, though it has come down slightly in recent weeks.
The manager says a number of companies in the portfolio could benefit from the damage caused by this week’s riots – as well as similar disturbances across the world.
Most of the portfolio is invested in stocks listed in the US, but these companies tend to export to other developed markets and emerging markets.
Tyco – a top-10 holding that makes up 3.7 per cent of the portfolio – installs and monitors alarm systems and fire protection equipment.
Thermofisher Scientific – another top-10 holding – is a speciality diagnostics company that develops ways to identify and confirm criminals.
Pictet Securities has a total expense ratio (TER) of 2.02 per cent, and is domiciled in Luxembourg.
In a recent FE Trustnet article, Harry Katz, director of Norwest Consultants, recommended Pictet Security as a fund to liven up an investor’s portfolio.