Asset manager Candriam has launched the Candriam Sustainable Equity Water Fund investing in companies aiming to reduce pressures on water resources through clean and efficient solutions.
Classified as an Sustainable Finance Disclosure Regulation Article 9 fund under the EU regulations, it addresses the current water crisis by targeting “water solutions enablers” that treat, transport and distribute water and “water efficiency leaders” that reduce water intensity in high-use sectors.
According to the asset manager, with only 1% of the Earth’s water available for human consumption and a projected 40% water shortage by 2050, urgent action is needed.
Thematic ETFs: Very specific investment themes
The fund employs a disciplined analytical approach to portfolio construction, incorporating thematic and ESG screening along with in-depth thematic analysis. This results in a highly convicted portfolio focused on all relevant aspects of water. The investment strategy is supported by a bespoke water taxonomy, integrating multifaceted data sources and artificial intelligence, to identify promising investment opportunities.Co-managed by senior fund managers Bastien Dublanc and David Czupryna, the product receives strategy inputs from Candriam’s ESG and gobal equity team.The fund is available for distribution in Luxembourg, Austria, Belgium, France, Italy, Germany, Switzerland, Finland, Sweden, Denmark and the Netherlands, with availability in the UK coming soon.
ETF issuers predict rise in demand for tech and water-themed funds
Johan Van der Biest, co-head of thematic global equity at Candriam, commented: “Water, indispensable for survival, is at the center of a growing global imperative. The launch of this fund provides sustainably conscious investors with an opportunity to be part of the solution to an intensifying global challenge. As the water crisis escalates, the market of solutions working to mitigate these challenges is growing in tandem – the global water market is expected to exceed $1100 billion by 2030.”
