Why invest in the Water and Waste theme? Regnan Sustainable Water and Waste Fund

Water and Waste is a tale of civilization and economic progress

Water is essential for life on earth and is a precious resource, yet is underappreciated and undervalued. It is used in nearly all forms of economic activity including food production, industrial manufacturing and energy production.

Put simply, ‘there is no economy without water’ yet ‘there is no sustainable economy without waste management’.

The waste sector offers an array of long-term secular growth opportunities as waste generation is expected to grow at double the rate of the global population by 2050.¹

Water and Waste have the same long-term structural drivers, offer the same solutions, and work well together from an investment perspective.

¹https://datatopics.worldbank.org/what-a-waste/trends_in_solid_waste_management.html

How much water does it take to make 1 cotton shirt?

94 Litres
494 Litres
1,494 Litres
2,494 Litres

Answer: it takes
2,494 Litres of water to make 1 cotton shirt!

Helped by these long-term structural drivers, water and waste companies have outperformed the broader market in the last c.15 years¹

These companies have historically demonstrated a solid up-down capture, showing resilience during down markets and rising with the market in a rallying environment.

¹Source: Bloomberg as at 31 December 2022.

How long does a foam cup take to decompose?

1 Year
5 Years
10 Years
50 Years

Given the themes’ perpetual nature, investors are increasingly seeing water and waste as a long-term investment opportunity.

Water & Waste indices vs. MSCI All Country World Index
(Net total return)

Source: Bloomberg 19 July 2022. Waste Index represents BNP Paribas Global Waste Management Total Return Index USD, Water Index represents S&P Gb Water USD Net Total Return Index. All Indices in USD.

We believe equities in
this area offer highly visible and stable earnings and are backed by a positive regulatory and corporate environment.