A finite resource in ever growing demand, water represents a durable growth area in both developed markets suffering from underinvestment and emerging markets in need of more infrastructure. As the appreciation of quality water and improved food and health standards grows – not least in the wake of the COVID crisis – so should our endorsement of the breadth of investment opportunities the sector offers. Portfolio manager Justin Winter at Impax Asset Management explains.
This Market weekly is part of the BNP Paribas Asset Management podcast series on our investment views and strategies.
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The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.