Water consumption is increasing twice as fast as the number of people consuming it. A key issue of water is that the true value of water is not recognized. Water prices are low and markets are regulated.
Water fund focuses on companies that belong to one of three categories: water supply enhancing, water quality enhancement like wastewater treatment and disinfection, and water efficiency.
Allianz has launched an RCM water fund which will invest at least 80 percent of its proceeds in companies that derive at least 50 percent of their revenues from water-related activities or are listed in a recognized water index. The remaining 20 percent of the fund’s assets can be invested in more diversified companies that also provide growing exposure to the water theme. One of the biggest fund exposures will be to water utilities, but we also have opportunities to invest in companies that produce water efficient sanitary systems, products for water disinfection, or pumps. We hold companies that build and operate wastewater treatment in China, water quality testing equipment, water meters, and desalination plants.
- True Value of Water