1) The fund seeks to increase the value of its assets over the medium term by investing in equities and/or equity equivalent securities issued by companies that conduct a significant part of their business in water and related or connected sectors.
2) The fund has significant exposure to a single sector and is likely to be subject to a greater concentration risk and higher volatility than a more diversified investment.
3) The fund has significant equity exposure. Risks of equity market may include significant fluctuations in prices, negative information about the issuer or market. Fluctuations are often amplified in the short term.
4) The management company may at its discretion pay dividends out of the capital of the fund. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the fund’s capital may result in an immediate reduction of the net asset value per share.
5) The monthly distribution share classes will continue to distribute monthly dividends in periods when the fund has negative return, which will further reduce the net asset value of the fund.
6) Investors should not solely rely on this document to make any investment decision. Please refer to the Hong Kong offering document for further information (including the risk factors) about the fund.
SFC-authorized ESG fund^
Investing across the rapidly growing water value chain.
Water is a precious resource under tremendous strain. To mitigate the increasing gap between the demand and supply of water, as well as rising concerns over water quality, substantial capital investment is being pumped into companies active in the water domain. In our opinion, this domain is expected to offer long-term growth opportunities, due to these five drivers.
The water domain offers a deep and diverse range of opportunities cutting across:
The various sectors provide exposure to the entire water value chain.
This enables flexible investment allocation, while taking the different economic cycles into consideration.
- BNP Paribas Aqua: An equity fund investing globally in companies active in the rapidly growing water value chain. Access a water universe of approximately 270 companies, worth US$1.9 trillion market capitalisation.4
- Awarded sustainable investing labels: SRI and Febelfin5
- Managed by Impax Asset Management: an award-winning global leader
With over 20 years’ experience in environmental markets investing and a partner of BNP Paribas Asset Management.4,6
4. Impax Asset Management, June 2021
5. SRI Label, June 2021. The “Sustainable and Responsible Investment” (SRI) label is a tool for selecting responsible and sustainable investments, created and supported by the French Ministry of Finance. It also aims to ensure that the management of the fund is based on a solid methodology, with a high degree transparency and quality information. To obtain the SRI label, a fund must meet a set of criteria, divided into six themes. For more information: www.lelabelisr.fr/;
Febelfin, June 2021. Created by the Belgian federation of the financial sector in 2019, the Febelfin label was designed as a standard or quality standard that all funds claiming to be sustainable, socially responsible, or ethical must respect. It aims to become a market standard, at least for Belgium. For more information: www.towardssustainability.be/.
6. Principles for Responsible Investment (UNPRI), 2020 & The Queen’s Award Enterprise, April 2020
This material is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Asia Limited with its registered office at 17/F, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong. This material has not been reviewed by the Hong Kong Securities and Futures Commission. It is produced for information purposes only and does not constitute: 1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. Investors considering subscribing for the financial instruments should read the most recent prospectus, offering document or other information for further details including the risk factors available from your local BNPP AM correspondents, if any, or from the entities marketing the Financial Instrument(s). Investors should consult their own professional advisors in respect of investment, legal, accounting, domicile and tax advice prior to investing in the funds in order to make an independent determination of the suitability of the consequences of an investment. Investments involve risks. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. Past performance is not a guide to future performance.