French asset management giant Amundi has soft-launched a water fund, the Amundi – KBI Aqua fund on 16 December 2016, InvestmentEurope can reveal.
The inception of this new strategy comes after the acquisition of KBI Global Investors (formerly Kleinwort Benson Investors) by Amundi in August 2016. KBIGI runs four natural resources strategies including the KBIGI Water Strategy for institutional clients.
The Amundi – KBI Aqua fund, domiciled in France, aims to invest globally in companies of the water sector, an investment universe of around 150 stocks. It will consist of a portfolio of 50 stocks.
Stocks selected will be these of companies that provide solutions to prevent and/or address water shortage issues, make a significant part of their turnover or that are recognised as leaders in the water sector.
Services, infrastructure and technology remain among sectors targeted by the Amundi – KBI Aqua Fund.
According to fund literature, the stock selection will rely on a qualitative and fundamental approach including the assessment of the earning growth potential of companies and of their capabilities to achieve constant growth over the long term; the assessment of specific risks by studying the companies’ business models, management, long-term strategies, competitive edges and financial health; the assessment of the companies’ relative and absolute values.
The equity exposure of the fund will be comprised between 80% and 120% of its net assets, regardless of geographic areas or market capitalisation.
The Amundi – KBI Aqua fund can also invest up to 30% in companies with headquarters in emerging markets.
Amundi has over €1trn in assets under management as of end of September 2016.