Fidelity has unveiled a strategy focusing on sustainable investment opportunities within the water and waste management sectors.
The Fidelity Sustainable Water and Waste Fund seeks to deliver strong risk adjusted returns across the cycle by investing globally in companies involved in the design, manufacture, or sale of products and services in connection with the water and waste management sectors. It has the ability to invest across the water and waste value chains, including in companies developing new technologies to meet ever growing demand.
With over 70% of the world’s population expected to live in cities by 2050, there is no doubt rapid urbanisation is underway in developing markets, while developed markets are dealing with increasing pressure on old infrastructure, leading any city to be quickly paralysed if they fail to prioritise water and waste management.
Portfolio manager, Bertrand Lecourt, will leverage Fidelity’s robust research and investment capabilities, to find the most compelling investment opportunities in this under-researched sector. He joins Fidelity International from Polar Capital, bringing with him over 18 years’ experience researching water and waste utilities.
Lecourt commented: “The story of water and waste is as old as the story of civilisation, yet companies in this sector remain relatively unexplored by investors.
“Investment opportunities in these sectors are driven by ever increasing demand for clean water and sanitation needs, as well as a better ability to manage the waste created by populations growing larger, wealthier and increasingly urbanised. There is no economy without water and there is no sustainable economy without waste management.
“Though a unique combination of water and waste investment opportunities, we believe this fund offers strong diversification for global equities, as well as significant growth potential and a boost to the ESG profile of your portfolio.”
Romain Boscher, Global CIO, Equities, Fidelity International added: “Our new water and waste fund is a great example of being able to incorporate responsible and sustainable investment themes into a portfolio, without comprising on diversification or long-term growth potential.
“We continually review our fund range to ensure we are meeting the evolving needs of our clients and will continue to explore new and differentiated products in this field in 2019.”