PARVEST CLIMATE IMPACT

Transcription

1 PARVEST CLIMATE IMPACT CONTRIBUTES TO FIGHTING CLIMATE CHANGE ALEXANDRE JEANBLANC Lugano, November 20, 2017 For Professional Investors Marketing Communication

2 Global warming, an ungraspable threat Finance companies that find solutions to climate change 25y 1 According to Intergovernmental Panel on Climate Change experts, at the current level of Greenhouse gas emissions, we have only 25 years before reaching the critical level of 2 C rise in temperatures (compared with those before industrial ages) In 2030, more than half the global population will face problems of access to water Source: United Nations Environnent Programme (UNEP),

3 Recycling Mitigation : recycling packages 34% 2 Only 34% of glass is recycled in the United States times less energy to produce a recycled aluminium container than the same non recycled one Source:

4 Insulating buildings Mitigation : building energy efficiency 22% 1 In France, the construction sector is responsible for 22% of Greenhouse Gas Emissions 3,5 1 The energy refurbishment of a house allows to divide the energy consumption by more than 3,5 Source: 1 4

5 Producing and using electricity better Mitigation : building energy efficiency and renewable energies 30% 1 Variable speed motors consume 30% less energy 60% 2 Since 2010, the average cost of a solar electric system has dropped by 60 percent 2 100% 3 A wind farm as wide as the surface of India that would be located in the North Atlantic would provide electricity for the whole planet. Source:

6 Increasing the capacities of water installations Adaptation : desalination equipments 2,7 1 2,7 billion people suffer from problems of access to water during at least one month in a year 50% 2 By 2025, in Israel, 50% of water will come from desalination installations 11% 3 Growth in capacities of desalination systems is expected globally to be 11% per year over the next 10 years Source: 1 Citi Group Global Markets, Water Sector Handbook, 24 May 2011, 2 Xylem, Investor and Analyst Day Presentation, October 13, Water 2030 Global Water Supply and Demand model. Booz Allen Hamilton, Global Infrastructure Partners, World Energy Outlook, Organization for Economic Co-operation and Development (OECD). Boeing, Drewry Shipping Consultants, US Department of Transportation 6

7 Recycling water Adaptation : purification by application of ozone and UV 76 1 In India, 76 million people don t have direct access to safe water and rely on filtration micro-units 80% 2 In Israel, 80% of domestic water used is recycled by means of inverse osmosis, bacterian purification, nano-filtration or application of ozone and UV 14% 3 Physical treatment of water is expected to grow by 14% per year in the upcoming 10 years Source: 1 Danone Communities 2 Citi Group Global Markets, Water Sector Handbook, 24 May 2011, Xylem, Investor and Analyst Day Presentation, October 13, Water 2030 Global Water Supply and Demand model. Booz Allen Hamilton, Global Infrastructure Partners, World Energy Outlook, Organization for Economic Co-operation and Development (OECD). Boeing, 3 Drewry Shipping Consultants, US Department of Transportation 7

8 Sparing water Adaptation : drip irrigation 30% 1 Drip irrigation enables to spare at least 30% of the water used in agriculture 2% 2 Drip irrigation is used on just 2% of the world s farmed land area 16% 2 Expected growth of 16% in drip irrigation systems in China and India in the upcoming 10 years (annual growth of 10% globally) *Sources: FactSet

9 Financial investments matter Positive impact per annum of 10m investment net CO 2 emissions avoided total water treated or provided CO 2 6,610tco 2 equivalent to taking 3,000 cars off the road for a year 2,590megalitres equivalent to 15,900 households annual water consumption total renewable electricity generated total materials recovered/waste treated 2,500MWh 660tonnes equivalent to 600 households' annual electricity consumption equivalent to 660 households annual waste arising Impact of 10M invested in the fund for one year. The UK Green Investment Bank s calculator was used to translate the impact into everyday equivalents (e.g. cars on the road, household energy use). Based on most recently reported annual impact data for holdings in the Parvest Climate Impact Fund as of 31/12/2016. Methodology has been assured by Ernst & Young LLP. Source : Impax as at 31 December

10 Experienced, multidisciplinary investment team 1 Portfolio Construction Team Founder and Chief Executive Investment Risk & Process Trading Bruce Jenkyn-Jones Co - PM Jon Forster Co - PM Justin Winter Ian Simm Simon Higgo Dean Palin Supported by Portfolio Managers and Analysts Sustainability & ESG Hubert Aarts Co-Head, Listed Equities David Li 2 Michael Landymore Kirsteen Morrison Lisa Beauvilain Rupert Rink David Winborne Oscar Yang 2 Agne Rackauskaite Sid Jha 3 Fotis Chatzimichalakis Average investment experience: 18 years; environmental: 11 years Source: Impax. 1 As at 30 September Based in Hong Kong 3 Based in New York. PM: Portfolio Manager. ESG: Environmental, Social, Governance. 10

11 Investment process schematic All Global Equities Revenue analysis Identification of Resource Efficiency revenues Initial screening Viper screening & financial scoring, initial ESG analysis, financial analysts, brokers, company contacts Quality companies identified 10 Step review, VIPER valuation model, full ESG risk analysis Investment Committee A-list approval A-list Portfolio construction 11

12 Diversified portfolio key to success A SMALL/MID CAP PORTFOLIO(WTD AV: $6BN V MSCI WORLD:$28BN) >$10bn 17% 92% $2bn-$10bn 67% 8% <$2bn 11% PCI Cash 6% MSCI World GEOGRAPHY DRIVEN BY FUNDAMENTAL VALUATIONS 1 BROADLY DIVERSIFIED ACROSS ENVIRONMENTAL MARKETS Energy Efficiency 39% Renewable & Alternative Energy 11% Food, Agriculture & Forestry 7% Cash 6% Average ET exposure 80% Pollution Control 6% Water Infrastructure & Technologies 19% Environmental Support Services 3% Waste Management & Technologies 11% EXPOSED TO BOTH DEFENSIVE AND CYCLICAL STOCKS 2 North America Europe Asia ex Japan Japan ROW Cash 4% 2% 9% 1% 6% 0% 24% 19% 32% 40% PCI MSCI World 63% Cyclical Defensive Commodity Cash 5% 8% 6% 31% 43% 48% 58% PCI MSCI World Source: FactSet, data as at 31 October Data may not add up to 100% due to rounding. 1 Geographic allocation by country of listing, MSCI classification. 2 Stability of demand during economic upturns and downturns. This is for illustrative purposes only and should not be used as a basis for making any specific investment, business or commercial decisions 12

13 Performance Parvest Climate Impact P Share Performance at the end of October 2017 October Last 3M YTD Last Last Last Last Since P Share (Net of fees - %) 12M 24M* 36M* 60M* inc.,** Parvest Climate Impact 2,94 5,02 9,49 15,24 12,56 12,70 14,74 6,00 MSCI WORLD SMALL CAP (NR) 2,95 6,66 7,07 18,71 11,66 13,05 15,76 8,13 Excess return -0,01-1,64 2,42-3,47 0,91-0,35-1,02-2,12 Performance History (%) - Full year Parvest Climate Impact 15,89 10,29 8,17 27,29 9,33 MSCI WORLD SMALL CAP (NR) 16,19 11,05 16,03 26,66 15,74 Excess return -0,31-0,76-7,87 0,63-6,42 Performance History (%) - October to October Parvest Climate Impact 15,24 9,95 12,97 10,79 25,41 MSCI WORLD SMALL CAP (NR) 18,71 5,02 15,89 14,09 26,11 Excess return -3,47 4,92-2,91-3,30-0,70 Risk indicators (annualised) Fund volatility (%) 8,07 9,79 9,64 11,59 10,55 15,93 MSCI WORLD SMALL CAP (NR) 8,67 12,14 11,67 12,89 11,28 15,18 Tracking error (%) 3,96 4,84 5,28 5,18 4,54 6,71 Information ratio 0,61-0,72 0,17-0,07-0,22-0,32 Last 36W Last 52W Last 24M Last 36M Last 60M Since inc.,** All figures net of fees (in EUR) *annualised performance **first NAV date: 31/05/2006 annualised Ongoing charges: 1.57% Source: BNP PARIBAS Securities Services as at 30 October 2017 Past performance or achievement is not indicative of current or future performance. 13

14 Fund characteristics: Parvest Climate Impact Legal Form Legal Name ISIN Domicile Registered Sub-fund of the Parvest UCITS V Compliant SICAV Parvest Climate Impact LU (Cap) LU (Dis) LU (Instit) LU (Priv) Luxembourg Austria, Bahrain, Belgium, Chile, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Jersey, Luxembourg, Netherlands, Portugal, Singapore, Slovakia, Spain, Sweden, Switzerland, United Kingdom Inception Date 2009/11/12 Benchmark MSCI World Small Cap (USD) NR Classification Equities Worldwide Small & Mid Cap Minimum Investment Horizon The higher the risk, the longer the recommended investment horizon Base Currency Euro Risk Class (1-7) 6 (the synthetic risk indicator is determined on a scale from 1 to 7 (7 being the highest risk level). It is subject to a periodical computation and can consequently change over time. We invite you to consult regularly the DICI Management Fees (Max) Classic share: 2.20% I share: 1.10% Privilege share : 1.10% Subscription Fees Classic share: 3% I share: 0% Redemption Fees Classic share:0% I share:0% Ongoing Charges Classic share: 2.68% (as of 30 th November 2016) I share: 1.31% (as of 30 th November 2016) Privilege share : 1.57% Management Company BNP Paribas Asset Management Luxembourg Delegated Management Company Impax Asset Management Ltd. Luxflag Label Since December 2013 Investors should ensure that they are fully informed about the sub-funds, classes and sub-classes of shares that are authorized to be marketed in their country of residence and the constraints applicable in each of these countries. The investments in the above funds are subject to market fluctuations and the risks inherent in investments in securities. 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 outlay. Source : BP2S, 30/06/17. 14

15 Risk factors The funds may be exposed to risks defined below: Risk of capital Loss : The investments in the funds are subject to market fluctuations and the risks inherent in investments in securities. 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 outlay, the funds described being at risk of capital loss. Risk linked to Share Markets: The risks associated with investments in shares (and similar instruments) include significant fluctuations in prices, negative information about the issuer or market and the subordination of a company s shares to its bonds. 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 outlay. Subfunds investing in growth stocks may be more volatile than the market in general and may react differently to economic, political and market developments and to specific information about the issuer. Small-Cap risk: investing small caps are likely to be subject to a higher than average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity, or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Emerging market Investing in emerging markets, or specialized or restricted sectors is likely to be subject to a higher than average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity, or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk. Liquidity risk: this risk arises from the difficulty of selling a stock at fair value within a reasonable amount of time due to a lack of buyers. For a Complete description and definition of risks, please consult the last available prospectus and KIID of the funds. Investors considering subscribing to a fund should read carefully its most recent prospectus and KIID that can be downloaded free of charge from our site 15

16 Disclaimer BNP PARIBAS ASSET MANAGEMENT France, the investment management company, is a simplified joint stock company with its registered office at 1 boulevard Haussmann Paris, France, RCS Paris , registered with the Autorité des marchés financiers under number GP This material is issued and has been prepared by the investment management company. This material 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. This material makes reference to certain financial instruments authorised and regulated in their jurisdiction(s) of incorporation. No action has been taken which would permit the public offering of the financial instrument(s) in any other jurisdiction, except as indicated in the most recent prospectus and the Key Investor Information Document (KIID) of the relevant financial instrument(s) where such action would be required, in particular, in the United States, to US persons (as such term is defined in Regulation S of the United States Securities Act of 1933). Prior to any subscription in a country in which such financial instrument(s) is/are registered, investors should verify any legal constraints or restrictions there may be in connection with the subscription, purchase, possession or sale of the financial instrument(s). Investors considering subscribing to the financial instrument(s) should read carefully the most recent prospectus and Key Investor Information Document (KIID) and consult the financial instrument(s ) most recent financial reports. These documents are available on the website. Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor s investment portfolio. Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to financial instruments may have a significant effect on the results presented in this material. Past performance is not a guide to future performance and the value of the investments in financial instrument(s) may go down as well as up. Investors may not get back the amount they originally invested. The performance data, as applicable, reflected in this material, do not take into account the commissions, costs incurred on the issue and redemption and taxes. All information referred to in the present document is available on Past performance is no indication of current or future performance, and the performance data do not take account of the commissions and costs incurred on the issue and redemption of units. The prospectus, the KIID, the statutes and the annual and semi-annual reports can be obtained, free of charge, from the representative in Switzerland, BNP Paribas (Suisse) SA, 2, place de Hollande, 1204, Geneva; the paying agent in Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, 16, Selnaustrasse, 8002 Zurich. 16