Fund EcoMarket
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- Pictet Water Fund
| Fund Name | SRI Style | Product | Region | Asset Type | Launch Date |  |
|---|---|---|---|---|---|---|
 Pictet Water Fund |
Environmentally Focused | SICAV/Offshore* | Global | Equity | 19/01/2000 | |
Fund Size: £7094.00m Total screened & themed / SRI assets: £108000.00 Total Responsible Ownership assets: £202000.00 Total assets under management: £20200.00 As at: 31/03/23 Contact: lrichards@pictet.com |
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OverviewOur Water strategy invests across the entire water value chain. We look for service companies producing and distributing drinking water to consumers. We also look for companies active in collection and treatment of wastewater, as well as those developing water technologies for companies and consumers. We also invest in companies developing efficient irrigation systems and in companies improving waste management, thereby protecting groundwater quality. |
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FiltersFund informationSustainabilityEnvironmental policy Sustainability policy Limits exposure to carbon intensive industries Environmental damage and pollution policy Favours cleaner, greener companies Waste management policy or theme UN Global Compact linked exclusion policy Sustainability focus UN Sustainable Development Goals (SDG) focus Report against sustainability objectives Encourage more sustainable practices through stewardship Transition focus Nature & BiodiversityDeforestation / palm oil policy Plastics policy / reviewing plastics Unsustainable / illegal deforestation exclusion policy Avoids genetically modified seeds/crop production Responsible palm oil policy Genetic engineering exclusion Water stewardship policy Climate Change & EnergyNuclear exclusion policy Coal, oil & / or gas majors excluded Climate change / greenhouse gas emissions policy Invests in clean energy / renewables Fracking and tar sands excluded Arctic drilling exclusion Energy efficiency theme TCFD reporting requirement Fossil fuel exploration exclusion - direct involvement Fossil fuel exploration exclusion – indirect involvement Targeted Positive InvestmentsEU Sustainable Finance Taxonomy holdings 5-25% of fund assets EU Sustainable Finance Taxonomy holdings >25% of fund assets Invests >25% of fund in environmental/social solutions companies Invests >50% of fund in environmental/social solutions companies Human RightsHuman rights policy Child labour exclusion Responsible supply chain policy or theme Modern slavery exclusion policy Social / EmploymentSocial policy Health & wellbeing policies or theme Favours companies with strong social policies Mining exclusion Meeting Peoples' Basic NeedsWater / sanitation policy or theme Ethical Values Led ExclusionsEthical policies Animal testing exclusion policy Tobacco and related product manufacturers excluded Armaments manufacturers avoided Alcohol production excluded Gambling avoidance policy Pornography avoidance policy Gilts / government bonds - exclude all Gilts / government bonds - exclude some Civilian firearms production exclusion Banking & FinancialsExclude banks with significant fossil fuel investments Governance & ManagementGovernance policy Anti-bribery and corruption policy Avoids companies with poor governance Encourage board diversity e.g. gender Encourage higher ESG standards through stewardship activity Fund GovernanceESG integration strategy Employ external (fund) oversight or advisory committee Asset Size & MetricsOver 50% large cap companies Invests in small, mid and large cap companies Invests mostly in large cap companies How The Fund WorksBalances company 'pros and cons' / best in sector Strictly screened ethical fund Positive selection bias Negative selection bias Norms focus Combines norms based exclusions with other SRI criteria Combines ESG strategy with other SRI criteria ESG weighted / tilt Focus on ESG risk mitigation SRI / ESG / Ethical policies explained on website Assets mapped to SDGs All assets (except cash) meet published sustain'y criteria Impact MethodologiesAims to generate positive impacts (or 'outcomes') Measures positive impacts Positive environmental impact theme Invests in environmental solutions companies Invests in sustainability / ESG disruptors Described as an ‘impact investment fund’ Aim to deliver positive impacts through engagement Over 50% in assets providing environmental or social ‘solutions’ Labels & AccreditationsEurosif Transparency SFDR Article 9 fund / product (EU) Intended Clients & Product OptionsIntended for investors interested in sustainability Available via an ISA (OEIC only) Intended for clients who want to have a positive impact Fund management company informationAbout The BusinessESG / SRI engagement (AFM company wide) Responsible ownership / stewardship policy or strategy (AFM company wide) Responsible ownership policy for non SRI funds (AFM company wide) Responsible ownership / ESG a key differentiator (AFM company wide) Vote all* shares at AGMs / EGMs (AFM company wide) Diversity, equality & inclusion engagement policy (AFM company wide) Sustainable property strategy (AFM company wide) Boutique / specialist fund management company Integrates ESG factors into all / most fund research In-house diversity improvement programme (AFM company wide) Senior management KPIs include environmental goals (AFM company wide) Invests in newly listed companies (AFM company wide) Invests in new sustainability linked bond issuances (AFM company wide) Offer structured intermediary training on sustainable investment ResourcesIn-house responsible ownership / voting expertise Employ specialist ESG / SRI / sustainability researchers Use specialist ESG / SRI / sustainability research companies Collaborations & AffiliationsPRI signatory Climate Action 100+ or IIGCC member Fund EcoMarket partner GFANZ member (AFM company wide) UN Principles of Responsible Banking framework signatory-co wide TNFD forum member (AFM company wide) Investment Association (IA) member AccreditationsUK Stewardship Code signatory (AFM company wide) PRI A+ rated (AFM company wide) Engagement ApproachRegularly lead collaborative ESG initiatives (AFM company wide) Engaging on climate change issues Engaging with fossil fuel companies on climate change Engaging to reduce plastics pollution / waste Engaging to encourage responsible mining practices Engaging on biodiversity / nature issues Engaging to encourage a Just Transition Engaging on human rights issues Engaging on labour / employment issues Engaging on diversity, equality and / or inclusion issues Engaging on governance issues Engaging on responsible supply chain issues Company Wide ExclusionsCoal exclusion policy (group wide coal mining exclusion policy) Controversial weapons avoidance policy (AFM company wide) Fossil fuel exclusion policy (AFM company wide) Climate & Net Zero TransitionEncourage carbon / greenhouse gas reduction (AFM company wide) Net Zero commitment (AFM company wide) Working towards a ‘Net Zero’ commitment (AFM company wide) Carbon offsetting - offset carbon as part of our net zero plan (AFM company wide) In-house carbon / GHG reduction policy (AFM company wide) Publish 'CEO owned' Climate Risk policy (AFM company wide) Net Zero - have set a Net Zero target date (AFM company wide) Committed to SBTi / Science Based Targets Initiative TransparencyPublish full voting record (AFM company wide) Publish responsible ownership / stewardship report (AFM company wide) Full SRI policy information on company website Paris Alignment plan publicly available (AFM company wide) Net Zero transition plan publicly available (AFM company wide) Sustainability transition plan publicly available (AFM company wide) |
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PolicyWe believe that the allocation of capital to firms developing solutions to global water challenges leads to a win-win proposition. On one hand companies providing such solutions experience growth superior to that of the market which, aggregated in a diversified portfolio, can display superior risk-adjusted return characteristics. Simultaneously, they have a positive impact on our society and the environment as their products and services are focused on developing technologies that improve water quality, maximize water efficiency or increase the number of households connected to networks.
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ProcessWe identify an initial universe of listed companies active in the water value chain (less than 2% of the global equity universe). We then screen out companies with less than 20% purity to the water theme. We define purity as the proportion of the enterprise value (EV) of a company derived from activities related to the theme (other metrics such as sales, EBIT or EBITDA can be employed as well). By applying the positive screen, we narrow the universe down from 40,000 to 250 companies with high exposure to the theme. Activities linked to branded bottled water are not considered a part of the theme. Water rights are often politically sensitive and can infringe on the HR to water, hence we currently do no invest in such activities.
When defining the investment universe of Thematic strategies, we systematically exclude stocks that have negative impacts on the environment or society. If a company’s revenues generated by such activities are above the threshold, the company is excluded from the universe.
We also exclude companies in severe material breach of UN Global Compact Principles on human rights, labour standards, environmental protection, and anti-bribery/corruption.
Exclusions are based on reliable sources gathered from reputable third-party research providers. Pictet AM retains full discretion over exclusions and always reserves the right to deviate from third party information on a case-by-case basis. We monitor the exposure to all activities that might be perceived as controversial by some investors. We use Sustainalytics as our external data provider and enhance it with company disclosures and our own research.
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Resources, Affiliations & Corporate StrategiesPictet Asset Management has a dedicated ESG Team which leads and co-ordinates implementation of our responsible investment policy, including ESG integration in investment processes, ownership practices, risk management and reporting tools. The ESG Team reports directly to Sébastien Eisinger, Managing Partner Pictet Group, Co-CEO Pictet Asset Management and Head of Investments. Key responsibilities include: Investments
Active Ownership
Pictet Asset Management has been a signatory of the UNPRI since 2007. In addition, Pictet Asset Management actively participates in several investor initiatives aimed at sharing best practices between asset managers and owners and encouraging corporate disclosure on ESG issues. We are notably involved in the IIGCC (Institutional Investors Group on Climate Change), SSF (Swiss Sustainable Finance) and similar organisation in the UK, Germany and Spain.
Pictet Group and / or Pictet Asset Management supports and actively participates in international and national initiatives, organisations and partnerships including the below (which indicates Pictet’s involvement, year joined and key areas of focus) :
Source: Pictet Asset Management, [April 2023]
Other industry associations:
Furthermore, Pictet, together with Swiss Sustainable Finance, was leading an initiative to put pressure on index providers to remove controversial weapon manufacturers from mainstream indices. The initiative, launched in August 2018, secured the backing of 174 signatories controlling over USD 9.7 trillion and including international asset owners and managers (as of January 2020). This initiative has now been closed due to inclusion of controversial weapons exposure disclosures in draft RTS and EU Benchmarking regulation.
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Literature
Last amended: 25/01/24 10:45 |
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04/30/2024