L&G Clean Water UCITS ETF

ISIN: IE00BK5BC891:USD

Provider: Legal & General | Official Instrument Web (external)

Instrument Profile

Understanding the Opportunity:

There is no alternative to water and its scarcity is becoming a threat around the globe. Beyond drinking water, which is essential for human survival, water is an indispensable resource for many industrial processes such as food, chemical and pharmacy, textile, semiconductor and pulp & paper. Consequently, there is an ever-increasing demand for investments in water infrastructure and technology from all stakeholders: individuals, companies and states. Studies indicate that long-term growth in the water industry is expected to be 3-5% per year in developed countries and more than 10% per year in developing countries.
“Global water demand will more than double by 2050” – Source: MSCI ESG Research, 2014 using data from Aqueduct; OECD Environmental Outlook to 2050: The Consequences of Inaction, 2012

The Index aims to track the performance of a basket of stocks of companies that are actively engaged in the international clean water industry through the provision of technological, digital, engineering, utility and/or other services.

What is the investment objective?

The Index is comprised of companies which are publically traded on various stock exchanges around the world that are either            companies determined to have expertise in “Utilities” with a minimum Water Revenue Share of 90%, or companies determined to have expertise in “Engineering” with a minimum Water Revenue Share of 50% or companies determined to have expertise in “Technology” or “Digital” and a minimum Water Revenue Share of 5%. 

A company is only eligible for inclusion in the index if:

  • it is of sufficient size (determined by reference to the total market value of the proportion of its shares that are publically traded) and 
  • it is sufficiently “liquid” (a measure of how actively its shares are traded on a daily basis). 

Moreover, the Index excludes companies: engaged in pure coal mining; involved in the production of controversial weapons; or that, for a continuous period of three years, have been classified as being in breach of at least one of the UN Global Compact principles, which is a set of globally accepted standards on human rights, labour, environment and corruption.

The universe of companies out of which the Index selection is made is refreshed annually in March. However, the Index is reconstituted semi-annually in March and September in accordance with the full selection criteria and all companies are equally weighted within the Index. On a monthly basis, the weight of each company is assessed and, if any of them exceed 15% of the index, the weights of all companies are adjusted so that they are again equally weighted within the Index.

Type: Equity ETF

Geography: Broad Global

Sector: Broad Utilities

Investment Style: Mid-Cap Blend

Fund Size (AUM): USD 30,3M

MSCI Sustainability
Score

n/a

Source: MSCI Inc. Last update: Dec 6th, 2020

Morningstar Sustainability Score

3/5

Source: Morningstar, Inc.
Last update: Dec 6th, 2020

Data by the open sources of the instrument provider. Last update: 6.12.2020

Rolling performance at 3/12/2020

YTD: -1.21%

6 months: 15.09%

Performance data by the open sources of the instrument provider. Last update: 6.12.2020

Top 10 Holdings

Company

Badger Meter

Danaher

Evoqua Water Technologies

Itron

Advanced Drainage Systems

Idexx Laboratories

Watts Water Technologies

Energy Recovery

Pentair

Metawater

Weighting

1.9%

1.9%

1.9%

1.8%

1.8%

1.8%

1.8%

1.8%

1.8%

1.8%

22.1%

Top portfolio holdings as of 6.12.2020 | Source: instrument provider.

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