Peer Group Analysis: Water Investment Opportunity through Funds Solutions

The Water Investment Opportunity through Funds Solutions

This analysis looks at investments in water through various fund solutions. Such funds claim a sustainable investment mandate and are investing in various companies mainly in the  industrials, utilities, healthcare and technology sectors that aim to improve the efficient use of water, its access, service, stewardship and treatment. The analysis screens 19 funds and shows that most of theme have a better performance, a lower volatility and a smaller correlation to the global markets over the last 10 years. A concrete example then shows that this potential for diversification can hence be used strategically in an equity allocation to increase the performance of a portfolio and reduce its volatility. The water investment theme can hence be considered as an alternative to traditional investments in its own right.