Pictet Asset Management is marking the launch of the Pictet Water fund, the world’s first water fund, 25 years ago.
Over the quarter of a century, the fund has grown in size to EUR 8.2 billion with an annualised return of 7.8% compared to the MSCI AC World index return of 5.7% . This, the asset manager says, equates to a cumulative return of 554.4% compared to the MSCI AC World index return of 298.5% (as of 28 February 2025).
Megatrends, such as environmental quality, resource scarcity and a focus on health, underpin the water fund.
Looking ahead, the case for water investment has not changed but there has been an acceleration in the deterioration of water quality and global availability, the fund manager says. “The ability to detect a very low concentration of micropollutants in surface and ground waters, including antibiotics, hormones, pesticides and forever chemicals, has led to the need for more advanced monitoring and treatment systems. As such, companies developing new and innovative technology will be a key enabler to improving the water sector and will see the most opportunity.”
The weightings in the fund of monitoring and water treatment system manufacturers have increased over time, strongly contributing to the long term performance of the fund Pictet says.
Hans Peter Portner, Head of Thematic Equities at Pictet Asset Management, said: “The Water fund was launched to finance solutions to the global water challenge. As water safety and quality awareness continues to develop today so does solution demand, creating a fertile ground for innovation and investment in water technologies for decades to come. Investors will see a dual benefit of attractive returns while allocating capital to the companies that are providing effective solutions.”
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