Sustainable Thematic Equities Water
It is no exaggeration to say that water is the greatest challenge in the 21st century
There is no alternative to water and its scarcity is becoming a threat around the globe. Beyond drinking water, which is essential for human survival, water is an indispensable resource for many industrial processes such as food, chemical and pharmacy, textile, semiconductor and pulp & paper. Consequently, there is an ever-increasing demand for investments in water infrastructure and technology from all stakeholders: individuals, companies and states. Studies indicate that long-term growth in the water industry is expected to be 3-5% per year in developed countries and more than 10% per year in developing countries.
"Global water demand will more than double by 2050" - Source: MSCI ESG Research, 2014 using data from Aqueduct; OECD Environmental Outlook to 2050: The Consequences of Inaction, 2012
A distinguishing feature of our approach is that we leverage all available opportunities across the 4 key elements of the value chain of water: infrastructure (e.g. pipes and pumps), treatment, supply and efficient use of water. Moreover, we focus solely on pure players and therefore only invest in companies that derive at least 20% of their total revenues from water-related activities.
Our investment process is underpinned by a specialized research-driven investment approach which results in a high conviction portfolio with a focus on mid and small cap innovative companies. Our in-house sustainable investing expertise is an additional important element of our differentiated approach in the market. Integrating ESG (Environment, Social, and Governance) into our investment process skews our investment universe towards above average growth with high quality.
The portfolio is managed by Rainer Männle and Yohann Terry, two experienced investment professionals. Rainer has been managing the fund since 2011 and has several years of experience in the area of research as well as tactical and strategic sector allocation. Yohann has several years of experience covering the Communication & Internet sector as a sell-side financial analyst and head of Sustainability.
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