A SHORT PITCH ON: PARVEST AQUA APRIL 2016

Transcription

1 A SHORT PITCH ON: PARVEST AQUA APRIL 2016

2 Parvest Aqua Key strengths Water related investments: a $500 b global market expected to grow ~7% (1) per annum Parvest Aqua, implementing a successful water strategy launched in 2009 totalling circa 1.2 bn AUM Parvest Aqua invests in water companies considered as pure players = 60% (2) on average of their activities concentrate on water sectors (water infrastructure, treatment and utilities). The fund was recently labelled Luxflag A strong performance (3) track record Performance at the end of March 2016 Classic Share (Net of fees - %) 12M 36M 60M Since inception. Parvest Aqua -3,73 11, ,61 Managed by an investment manager dedicated to resource efficiency and environmental markets since 1998 Impax is a BNP Paribas Investment Partner Experienced team of 30 specialists and global presence Sources: (1) FactSet, data for the FTSE EO Water Technology Index has been back tested. Citi Group Global Markets, Water Sector Handbook, 24 May 2011, Xylem, Investor and Analyst Day Presentation, 13 October 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. (2) Impax Asset Management, as at 31 Mars (3) Past performance of a fund is no guarantee as to its performance in the future. 15/05/2016 2

3 Water: a global market growing expected at ~7% per annum Opportunities all across the value chain MOST IMPORTANT RESOURCE FOR ECONOMIC GROWTH YET: Only 1% of world s water potable - 1 billion people lack access to clean water, 2.5 billion to sanitation Asia - 60% of global population but only 36% of freshwater resources Imbalance could mean demand exceeds supply by 40% by 2030 $500 B GLOBAL MARKET GROWING AT ~7% P.A. WITH SECULAR DRIVERS Emerging market urbanization, population and wealth growth Infrastructure underinvestment in developed markets Water quality regulation Adaptation to changing weather patterns OUTPERFORMANCE OF GLOBAL WATER EQUITIES* - USD (%) FTSE EO Water Technology INVESTMENT OPPORTUNITIES: Diverse and uncorrelated water value chain Long-term outperformance of global equities * The inception date of the FTSE EO Water Technology Index was 28 April All information presented prior to the index inception date is back-tested. The back-tested calculations are based on the same methodology that was in effect when the index was officially launched. Past performance is not indicative of future results, including how the FTSE EO Water Technology Index might perform relative to the MSCI AC World Index in any future period. Sources: FactSet, data for the FTSE EO Water Technology Index has been back tested. Citi Group Global Markets, Water Sector Handbook, 24 May 2011, Xylem, Investor and Analyst Day Presentation, 13 October 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 15/05/2016 3

4 Portfolio or index weight in % Parvest Aqua implements our successful water strategy Investing in companies considered as pure players STRATEGY CARACTHERISTICS Water Universe: 240 companies Universe Size: $0.7 T market cap Jan 2009 BNP Paribas Aqua BNP Paribas L1 Equity World Aqua Parvest Aqua 1,080m 125m MAIN ADDED VALUE OF OUR STRATEGY 60% Portfolio companies' average exposure to water and environmental businesses. 100% 80% 60% 40% 33% 26% 36% 20% 5% 0% <20% 20% - 49% 50% - 75% 76% - 100% % of revenues environmental activities Source: Impax Asset Management and BNP Paribas Asset Management. FactSet, WM Reuters, data as at 31 December There is no guarantee that the performance objective will be achieved. Investors should ensure that they are fully informed about the sub-funds, classes and sub-classes of shares that are authorised 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. 15/05/2016 4

5 Parvest Aqua leverages on our successful water strategy A well established investment process GLOBAL EQUITIES UNIVERSE: 20% of company activity linked to the water theme for getting into the investment universe PROPRIETARY QUANTITATIVE SYSTEM: Proprietary process based on Financial Metrics to screen stocks for sustainability themes LEAD ANALYST: High Level ESG (2) Analysis Business Assessment LEAD AND SECOND ANALYST: 10 Steps Analysis on Business Fundamentals, Market Dynamics and Outlook Full ESG Analysis Water Universe Screen (around 300 stocks covering all the water value chain) Impax Water Universe (liquidity filter = 240 stocks) Quantitative Score First screen (180 stocks on average) Qualitative Assessment Second screen (130 stocks on average) Final Due Diligence Source: Impax as at 30 June For illustrative purpose only. (2) ESG: Environmental, Social and Governance FINAL LIST (around 80 stocks) INVESTMENT COMMITTEE APPROVAL AN ENGAGED ENVIRONMENTAL SOCIAL GOVERNMENTAL (ESG) APPROACH: based on data provided by renowned worldwide specialists in the field, our selective ESG approach determines which stocks compose the fund; a continuous dialogue with all investee companies is held in order to prevent or minimize any potential ESG risk for the fund. 15/05/2016 5

6 A leading investment manager dedicated to resource efficiency The fund is managed by IMPAX Asset Management, our partner dedicated to the environmental sector. BNP Paribas Investment Partners owns 25% of Impax AM *, an asset manager dedicated to resource efficiency and environmental markets since 1998 Globally based, offices in London, Hong Kong, New York, and Portland 30 experienced investment team members with multi-disciplinary backgrounds and regional expertise (average industry experience: 18 years; sector: 11 years) Water related business weights 38% of the 4.2 bn** managed or advised by Impax BNP Paribas dedicated water strategy counts for circa 1.2 bn** Source: Impax Asset Management as of March 31, 2016 ** Assets under advice represent 3.8% of total AUM as at 31 March /05/2016 6

7 Fund characteristics: Parvest Aqua Domicile Registration Legal form (1) Luxembourg Launch date July 2015 Asset class Benchmark Minimum investment horizon Base currency SRRI** 6 Fund manager France Switzerland Italy Germany Sweden United-Kingdom Greece Ireland Jersey Luxembourg Netherland Singapore Liechtenstein Denmark Belgium Portugal Czech Republic Hungary Norway Slovakia Sub-fund of the Parvest UCITS IV SICAV registered under Luxembourg law Equities Worldwide All caps MSCI World EUR (NR) The higher the risk, the longer the investment horizon Euro Hubert Aarts Bruce Jenkyn-Jones Maximum management fees 1.75% (Share class C) Subscription / redemption fees Maximum 3.0% / No redemption fees On-going charges 2.20% (Share class C) as at 10 August 2015 Management companies ISIN codes BNP Paribas Asset Management Delegated management company : Impax Asset Management Share class C: LU (1) 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. (2) 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 KIID 15/05/2016 7

8 Parvest Aqua - C share (as at 31/03/2016) Source: BNP Paribas Asset Management. Data as of 31 Marc Investors should ensure that they are fully informed about the sub-funds, classes and sub-classes of shares that are authorised 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. Past performance or achievement is not indicative of current or future performance. 15/05/2016 8

9 Associated risks Investments in equity can involve significant fluctuations in prices, due for instance to negative information about the issuer or market. Moreover, these fluctuations are often amplified in the short term. Sub-funds investing in 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. The investments in the fund 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. Capital risk: the value of investments and the income they generate go down as well as up and it is possible that investors will not recover their initial outlay. Liquidity risk: there is a risk that investments made in the sub fund may become illiquid due to an over-restricted market (often reflected by a very broad bid-ask spread or by substantial price movements), or if their rating declines or their economic situation deteriorates significantly. Operational and custody risk: some markets are less regulated than most of the international markets; hence, the services related to custody and liquidation for the sub-fund on such markets could be more risky. Emerging market (and small-cap) risk: sub-funds investing in emerging markets, (small caps or specialised or restricted sectors) 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). 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. 15/05/2016 9

10 Disclaimer This material is issued and has been prepared by BNP Paribas Asset Management S.A.S. (BNPP AM)* a member of BNP Paribas Investment Partners (BNPP IP)**. 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. any investment advice. This material makes reference to certain financial instruments (the Financial Instrument(s) ) authorised and regulated in its/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, offering document or any other information material, as applicable, 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 for the Financial Instrument(s) should read carefully the most recent prospectus, offering document or other information material and consult the Financial Instrument(s) most recent financial reports. The prospectus, offering document or other information of the Financial Instrument(s) are available from your local BNPP IP correspondents, if any, or from the entities marketing the Financial Instrument(s). Opinions included in this material constitute the judgment of BNPP AM at the time specified and may be subject to change without notice. BNPP AM 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 a client or prospective client 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 the Financial Instruments may have a significant effect on the results portrayed 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. * BNPP AM is an investment manager registered with the Autorité des marches financiers in France under no , a simplified stock company with a capital of euros with its registered office at 1, boulevard Haussmann, Paris, France, RCS Paris ** BNP Paribas Investment Partners is the global brand name of the BNP Paribas group s asset management services. The individual asset management entities within BNP Paribas Investment Partners if specified herein, are specified for information only and do not necessarily carry on business in your jurisdiction. For further information, please contact your locally licensed Investment Partner. 15/05/