Fidelity launches fund focused on ‘unexplored’ waste and water sector
Fidelity International has launched its latest sustainable fund, focusing on water and waste management.
This would include companies in the design, manufacture or sale of products and services connected to water and waste management as well as companies developing new technologies for the sector.
Managed by Bertrand Lecourt and Saurabh Sharma, the pair described the sector as a ‘under-researched’ and ‘unexplored’ part of the market. They also felt it would be a strong diversifier for global equities.
“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.
“Through 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 an investors’ portfolio.”
Alva Devoy, managing director, Australia at Fidelity International, said Australian investors were particularly about the environment and wanted that reflected in their portfolios.
“Australian investors are increasingly focused on environmental concerns in particular, as they become more aware that their investments can have a direct impact on the important topics of climate change and water scarcity.
“We have responded to our clients’ demands by substantially increasing our focus on sustainable investment analysis, including the recent introduction of our proprietary ESG, sustainability company ratings. These Fidelity ESG ratings uniquely provide a forward-looking evaluation of a company’s trajectory on ESG-related issues.”
AUTHOR
Laura Dew
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
