Fidelity launches new water and waste fund

MEDIA RELEASE: Fidelity International has launched the Fidelity Sustainable Water & Waste Fund in Australia, focusing on sustainable investment opportunities within the water and waste management sectors.

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. 

Lead portfolio manager Bertrand Lecourt leverages Fidelity’s robust research and investment capabilities to find the most compelling investment opportunities in this under-researched sector, supported by assistant portfolio manager Saurabh Sharma.

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.

“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 Environmental, Social and Governance (ESG) profile of an investors’ portfolio.”

Alva Devoy, managing director, Australia at Fidelity International, added: “Today, our clients expect us, as stewards of their capital, to evaluate companies and company managements, on both their financial merit and on their approach and commitment to ESG factors. We approach this in an integrated way, with financial and ESG analysis happening in tandem.  

“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.  

“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. In response to this, Fidelity International – Australia is now launching a global equity fund focused on waste and water, which sits neatly within an over-arching ESG investment framework.”