“The launch of this fund provides sustainably conscious investors with an opportunity to be part of the solution to an intensifying global challenge,” said Johan Van der Biest, co-head of thematic global equity at Candriam, in a press statement announcing the launch of its sustainable equity water fund on Monday. Photo: Candriam

“The launch of this fund provides sustainably conscious investors with an opportunity to be part of the solution to an intensifying global challenge,” said Johan Van der Biest, co-head of thematic global equity at Candriam, in a press statement announcing the launch of its sustainable equity water fund on Monday. Photo: Candriam

Candriam has introduced its SFDR article 9 compliant sustainable equity water fund, targeting investments in companies addressing water infrastructure, efficiency and solutions amidst projections of a 40% water shortage by 2050.

Global multi-asset manager Candriam, with over €145bn in assets under management, announced the launch of its sustainable equity water fund on Monday 10 June 2024. Co-managed by senior fund managers Bastien Dublanc and David Czupryna, alongside a team of 25 professionals and the thematic global equity team, this SFDR article 9 fund aims to address the increasing global demand for resilient water infrastructure and efficient water management systems by investing in companies actively developing cleaner and more effective solutions, stated a press release.

The urgency of this initiative is emphasised by the limited availability of Earth’s water for human consumption, with only 1% accessible. Climate change exacerbates this challenge, projected to result in a 40% water shortage by 2050 without immediate action, according to Candriam. Addressing water scarcity is now imperative for sustainable development, necessitating significant global investment. Candriam, referencing other sources, estimates this investment at $6.7trn by 2030 and $22.6trn by 2050 for essential infrastructure globally.

The fund’s investment strategy targets companies termed ‘water solutions enablers,’ providing treatment, transportation, distribution and valorisation solutions, alongside ‘water efficiency leaders,’ reducing water intensity in high-use sectors.

Johan Van der Biest, co-head of thematic global equity at Candriam, emphasised the fund’s significance: “Water, indispensable for survival, is at the center of a growing global imperative. The launch of this fund provides sustainably conscious investors with an opportunity to be part of the solution to an intensifying global challenge. As the water crisis escalates, the market of solutions working to mitigate these challenges is growing in tandem--the global water market is expected to exceed $1.1trn by 2030.”

The Candriam sustainable equity water fund, a Luxembourg domiciled Sicav, is available in Luxembourg, Austria, Belgium, France, Italy, Germany, Switzerland, Finland, Sweden, Denmark, and the Netherlands, with availability in the UK expected in the coming weeks, said Candriam.

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