Kuala Lumpur – Manulife Investment Management (M) Berhad announces today the launch of Manulife Global Aqua Fund (the “Fund”), which aims to mitigate the increasing gap between the demand and supply of water and rising concerns over global water quality through investment. The Fund aims to provide capital appreciation by investing at least 95% of the Fund’s net asset value (NAV) in the BNP Paribas Funds Aqua (the “Target Fund”), which is managed by BNP Paribas Asset Management Luxembourg. The Target Fund invests in stocks across three broad sectors in the growing global water value chain: Water Infrastructure, Water Treatment and Water Utilities. The water domain is expected to offer long-term growth opportunities, due to five compelling drivers:
- Urbanisation: 68% of the world’s population is expected to live in cities by 20501, more infrastructure planning and management are needed.
- New infrastructures and upgrades: Aging infrastructure has caused inefficiencies in water supply and may present health risks2.
- Water scarcity: Water scarcity is a top risk identified by governments, corporations and academia3.
Rapidly growing water value chain: Potentially significant growth opportunities across the entire water value chain to keep up with supply and demand.
Technological innovation: At a national level, countries are channeling large amounts of money into innovation4.
Jason Chong, CEO, Manulife Investment Management (M) Berhad said: “By launching the Manulife Global Aqua Fund, we want to engage investors in Malaysia and together address one of the key issues in global climate change – the increasingly scarce supply of clean water. Globally we are facing a critical situation, especially with more frequent occurrences of floods in Asia, wildfires in the US and Australia, and intense drought in Africa, all of which are adding pressure on our precious water resources.”
“The challenges the water industry is facing may cause serious consequences to our livelihood. The United Nations estimated that 700 million people could be displaced by water scarcity by 20305, while more than 400 million people will be at risk of floods by 20506. Serious water pollution is harming the environment, as 80% of global wastewater goes untreated, containing everything from human waste to highly toxic industrial discharges7. With the rise of new industries, such as semiconductor production, the demand for water will only increase as years progress.” Chong added.
Angelia Chin-Sharpe, CEO, BNP Paribas Asset Management Malaysia said: “As one of the world’s largest manager of sustainability themed assets, BNP Paribas Asset Management has been integrating sustainable investment practices into the heart of what we do since 2002; and is focused on achieving potential long-term sustainable investment returns for clients.
“There is a misconception that investing in water-related companies is narrowly focused on utilities. But in truth, there is a surprisingly diverse range of opportunities spanning across sectors, regions and end markets. Our Aqua strategy began in 2008, and we have observed that the water-related sector is resilient throughout economic cycles8. We expect the opportunities in this theme to remain strong in
the years ahead, as urbanisation and innovation continues on its trajectory around the world.”
The Fund is a qualified Sustainable and Responsible Investment (SRI) fund under the Securities Commission Malaysia’s Guidelines on Sustainable and Responsible Investment Funds.
The Fund is suitable for investors with a medium-term investment horizon, who are willing to accept higher level of market risks and tolerate volatility; who wish to seek capital appreciation and investment exposure in companies within the global water value chain.
The Target Fund portfolio has a diversified exposure globally in water-related companies, accessing an investment universe of approximately 270 companies worth US$1.9trillion market capitalisation9. As of 30 June 2021, the top regions that the Target Fund invests in are companies in North America (50%), Europe (36%) and Asia and Japan (9%), with exposure to Water Treatment and Efficiency (39%), Water Infrastructure (37%) and Water Utilities (21%) value chains10.
Distribution of income by the Fund, if any, is incidental. Based in Euro, the Fund will be offered in A (RM Hedged) Class, A (AUD-Hedged) Class, A (SGD-Hedged) Class and A (USD-Hedged) Class. The Fund is now available for subscription through HSBC Bank Malaysia Berhad.
For more information about the Manulife Global Aqua Fund, please visit manulifeinvestment.com.my.
