Fidelity’s fund will focus on sustainable investment opportunities within the water and waste management sectors.
Fidelity International has launched the Fidelity Funds – Sustainable Water and Waste fund, a new fund focusing on sustainable investment opportunities within the water and waste management sectors.
The asset manager said that with over 70% of the world’s population expected to live in cities by 2050, there was no doubt rapid urbanisation was underway in developing markets, and that developed markets were also dealing with increasing pressure on old infrastructure. Any city will be quickly paralysed if they fail to prioritise water and waste management.
The 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.
Portfolio Manager, Bertrand Lecourt, will look for 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.
Bertrand Lecourt, portfolio manager, Fidelity International said: “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 chief investment officer, equities at 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.”
What Investment’s view: Any fund which invests in sustainability of resources, while resources are so stretched, will attract the attention of both SRI investors and more traditional ones. Again this should be part of a diversified portfolio.