Fidelity unveils sustainable water and waste fund

The investment opportunity is being driven by trends in both developing and developed markets, according to the firm

Fidelity International has announced the launch of a dedicated fund focussed entirely on the sustainable water and waste management sectors.

In an announcement on Thursday, the firm said the new fund will seek to invest in companies involved in the design, manufacture or sale of products and services in the two sectors, around the world.

It said the investment opportunity was twofold, both in developing and developed markets. The fund group explained that rapid urbanisation was underway in developing markets, while developed markets were seeing increasing pressures on their ageing infrastructure.

Fidelity has recruited former Polar Capital man Bertrand Lecourt to lead the fund. Lecourt transfers with 18 years’ experience in researching water and waste utilities.

“The story of water and waste is as old as the story of civilisation, yet companies in this sector remain relatively unexplored by investors,” he said in a media statement.

“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.”

Fidelity estimates that over 70% of the world’s population are expected to live in cities by 2050, which will further drive demand for new and improved utilities infrastructure.

Romain Boscher, the company’s global CIO of Equities, 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.”

Further details on the fund are available here.