Pictet-Water I dy GBP

Specialist

Rated Fund 2017-19. Invests in companies helping to improve water services

Did you know that today nine times more water is used globally than in 1900? Or that it takes 2,400 litres of water to grow a kilo of rice? Water is expected to become one of the world’s most valuable commodities due to increasing demand and dwindling supplies. While some investors may feel uncomfortable making a profit from this situation, others argue that capital is needed to invest in companies involved in conservation and improving the efficiency of the sector.

Pictet Water, launched in 2009, is the longest-established specialist water vehicle available in the UK. It invests in the shares of around 50 companies operating in the water sector worldwide, favouring those operating in water technology, water supply and environmental services sectors.

The fund’s investment team, backed up by an advisory board of scientists, business leaders and academics, is led by Cédric Lecamp and Louis Veilleux. In constructing the fund, they take a bottom-up, high-conviction approach, choosing the most promising stocks from a universe of 360 water companies. They aim to combine defensive stocks such as traditional water utility companies with growth stocks such as those involved in manufacturing pipes, pumps and metering.

Water quality monitoring is another growing area for the managers. Part of the fund is also invested in companies that provide environmental services, which help to reduce pollution through water treatment and processing industrial waste.

The managers ensure there is geographical diversification by investing in developed and emerging markets. While the fund’s largest exposure at the end of 2018 was to the US (more than 50%), it also had holdings in a number of other countries including the UK, France, China and Canada.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Pictet-Water I dy GBP
Manager
Pictet Asset Management (Europe) SA
Type
SICAV
ISIN
LU0448836600
Sector
Global
Launched
10/09/2009
OCF
1.2 %
Risk Rating
2
3 Year Sharpe
1.14
3 Year Alpha
-0.55
Yield
0.7 %
Benchmark
MSCI World NR EUR
The fund aims to invest in equities issued by companies operating in the water and air sector worldwide. The compartments invest in depository receipts, namely ADR, GDR and EDR. The Compartment may invest up to 30% of its net assets in China A Shares through (i) the QFII quota granted to an entity of the Pictet Group, (ii) the RQFII quota granted to an entity of the Pictet Group (iii) the Shanghai-Hong Kong Stock Connect programme, (iv) the Shenzhen-Hong Kong Stock Connect programme, and/or (v) any similar acceptable securities trading programmes which may be available to the Compartment in the future as approved by the relevant regulators from time to time. The Compartment may also use financial derivative instruments, such as futures and swaps, on China A Shares.
Holding %
Xylem Inc 4.43 %
Danaher Corp 4.24 %
American Water Works Co Inc 4.18 %
Thermo Fisher Scientific Inc 3.71 %
Waste Connections Inc 3.45 %
Veolia Environnement SA 3.23 %
Aqua America Inc 2.92 %
Suez SA 2.87 %
Flowserve Corp 2.59 %
Pentair PLC 2.54 %
Region %
United States 56.03 %
Eurozone 12.58 %
United Kingdom 7.29 %
Asia - Emerging 5.80 %
Canada 5.33 %
Europe - ex Euro 5.16 %
Sector %
Industrials 49.38 %
Utilities 24.52 %
Healthcare 13.14 %
Basic materials 8.34 %
Name
Pictet Asset Management (Europe) SA
Address
L-1855, Luxembourg, Luxembourg
UCITS
Yes
Legal Structure
SICAV

Managers

Louis Veilleux
Joined 09/01/2018
Cédric Lecamp
Joined 09/01/2018
Philippe Rohner
Joined 02/08/2013
Hans Portner
Joined 05/01/2001

Data provided by Morningstar.

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