Improving water infrastructure with Allianz Global Water
Water for all requires investment
Water is a rare and valuable commodity – in both industrialised countries and emerging markets. Industrialised countries are experiencing problems related to their often aging and leaky water infrastructure and inefficient use of water. Meanwhile, in many developing countries, billions of people still lack access to water – some 4.5 billion people do not have safely managed sanitation services. Poor water quality remains one of the leading causes of child mortality in developing countries.
The United Nations has addressed this situation in its Sustainable Development Goals (SDGs). Goal number 6 of the 17 goals is dedicated to “Clean water and sanitation.” Its aim is to ensure everyone has high-quality drinking water and access to appropriate sanitation. Minimizing wastage from inefficient water use is also of key importance.
This goal calls for enormous infrastructure investment in the years ahead: estimates put the figure required in 2040 alone at USD 316 billion.1
Allianz Global Water concentrates on three main areas
Water infrastructure is complex. Water providers must not only supply water and remove wastewater but also detect leaks and operate water treatment plants. It makes sense that they are also embracing the wider trend of digitalisation. With leaks alone costing some USD 10 billion each year, smart water networks can help save up to USD 12.5 billion annually.2 Water treatment, controls and tests are also important to help avoid pathogens in the water supply or to convert salt water into drinking water, for example, – tasks that are likely to become even more important in future.
Where does Allianz Global Water invest?
Allianz Global Water at a glance
The fund invests in companies that offer solutions for the management of water resources and access to clean water. The aim is to boost the sustainability of global water resources. The fund therefore focuses on the following of the 17 United Nations Sustainable Development Goals.
Environmental, Social and Governance (ESG) criteria are part of the selection process. Companies with controversial business practices or activities are excluded from the portfolio.4
Fund details, opportunities & risks
1 Global Infrastructure Outlook. https://outlook.gihub.org/sectors/water. Accessed on July 9, 2020.
2 https://cdn.ymaws.com/www.ncsafewater.org/resource/collection/A0650A28-4C94-471B-B98E-B0DFD4F76C35/Water_T_AM_09.10_Walsby.pdf
3 A performance of the strategy is not guaranteed and losses remain possible.
4 Details on the exclusion of the arms industry: securities of companies involved in controversial weapons or of companies that generate more than 10% of their sales from weaponry, military equipment or related services. Details on the exclusion of tobacco: securities of companies involved in tobacco production and securities of companies that generate more than 10% of their sales from tobacco.
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including positions with respect to short-term fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. Liquidity risk may possibly delay or prevent account withdrawals or redemptions. The volatility of fund unit/share prices may be increased or even strongly increased. Past performance does not predict future returns. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency. This is for information only and not to be construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sell any securities. The products or securities described herein may not be available for sale in all jurisdictions or to certain categories of investors. This is for distribution only as permitted by applicable law and in particular not available to residents and/or nationals of the USA. The investment opportunities described herein do not take into account the specific investment objectives, financial situation, knowledge, experience or specific needs of any particular person and are not guaranteed. The Management Company may decide to terminate the arrangements made for the marketing of its collective investment undertakings in accordance with applicable de-notification regulation. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable at the time of publication. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors GmbH.
For investors in Europe (excluding Switzerland)
For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact the issuer at the address indicated below or www.allianzgi-regulatory.eu. Austrian investors may also contact the facility and information agent Erste Bank der österreichischen Sparkassen AG, Am Belvedere 1, AT-1100 Wien. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). Allianz Global Investors GmbH has established branches in the United Kingdom, France, Italy, Spain, Luxembourg, Sweden, Belgium and the Netherlands. Contact details and information on the local regulation are available here (www.allianzgi.com/Info). The Summary of Investor Rights is available in English, French, German, Italian and Spanish at https://regulatory.allianzgi.com/en/investors-rights.
For investors in Switzerland
For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact [the Swiss funds’ representative and paying agent BNP Paribas Securities Services, Paris, Zurich branch, Selnaustrasse 16, CH-8002 Zürich - for Swiss retail investors only] or the issuer either electronically or by mail at the given address. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors (Schweiz) AG, a 100% subsidiary of Allianz Global Investors GmbH. The Summary of Investor Rights is available in English, French, German, Italian and Spanish at https://regulatory.allianzgi.com/en/investors-rights.
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