A SHORT PITCH ON: PARVEST AQUA

A SHORT PITCH ON:
PARVEST AQUA
APRIL 2016
Parvest Aqua
Key strengths
 Water related investments: a $500 b global market expected to grow ~7%(1) per
annum
 Parvest Aqua, implementing a successful water strategy launched in 2009 totalling
circa €1.2 bn AUM
 Parvest Aqua invests in water companies considered as pure players = 60%(2) on average of their activities
concentrate on water sectors (water infrastructure, treatment and utilities).
 The fund was recently labelled Luxflag
 A strong performance(3) track record
Performance at the end of March 2016 Classic Share
(Net of fees - %)
Parvest Aqua
12M
36M
60M
Since
inception.
-3,73
11,32
11.96
15,61
Managed by an investment manager dedicated to resource efficiency and
environmental markets since 1998
 Impax is a BNP Paribas Investment Partner
 Experienced team of 30 specialists and global presence
Sources: (1) FactSet, data for the FTSE EO Water Technology Index has been back tested. Citi Group Global Markets, “Water Sector Handbook”, 24 May 2011, Xylem, Investor and
Analyst Day Presentation, 13 October 2011. Water 2030 Global Water Supply and Demand model. Booz Allen Hamilton, Global Infrastructure Partners, World Energy Outlook,
Organization for Economic Co-operation and Development (OECD). Boeing, Drewry Shipping Consultants, US Department of Transportation. (2) Impax Asset Management, as at 31 Mars
2016. (3) Past performance of a fund is no guarantee as to its performance in the future.
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Water: a global market growing expected at ~7% per annum
Opportunities all across the value chain
MOST IMPORTANT RESOURCE FOR ECONOMIC
GROWTH YET:
 Only 1% of world’s water potable - 1 billion people lack
access to clean water, 2.5 billion to sanitation
 Asia - 60% of global population but only 36% of freshwater
resources
 Imbalance could mean demand exceeds supply by 40% by
2030
$500 B GLOBAL MARKET GROWING AT ~7% P.A. WITH
SECULAR DRIVERS
 Emerging market urbanization, population and wealth
growth
 Infrastructure underinvestment in developed markets
 Water quality regulation
 Adaptation to changing weather patterns
OUTPERFORMANCE OF GLOBAL WATER EQUITIES* USD (%)
300
250
FTSE EO Water
Technology
200
150
100
50
0
INVESTMENT OPPORTUNITIES:
 Diverse and uncorrelated water value chain
 Long-term outperformance of global equities
* The inception date of the FTSE EO Water Technology Index was 28 April 2008. All information presented prior to the index inception date is back-tested. The back-tested calculations
are based on the same methodology that was in effect when the index was officially launched. Past performance is not indicative of future results, including how the FTSE EO Water
Technology Index might perform relative to the MSCI AC World Index in any future period.
Sources: FactSet, data for the FTSE EO Water Technology Index has been back tested. Citi Group Global Markets, “Water Sector Handbook”, 24 May 2011, Xylem, Investor and Analyst
Day Presentation, 13 October 2011. Water 2030 Global Water Supply and Demand model. Booz Allen Hamilton, Global Infrastructure Partners, World Energy Outlook, Organization for
Economic Co-operation and Development (OECD). Boeing, Drewry Shipping Consultants, US Department of Transportation
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Parvest Aqua implements our successful water strategy
Investing in companies considered as pure players
STRATEGY CARACTHERISTICS
Water
Universe: 240 companies
Universe Size: $0.7 T market
cap
BNP Paribas Aqua
BNP Paribas L1 Equity World Aqua
Jan 2009
Parvest Aqua
€1,080m
€125m
60%
Portfolio companies'
average exposure to
water and environmental
businesses.
Portfolio or index weight in %
MAIN ADDED VALUE OF OUR STRATEGY
100%
80%
60%
33%
40%
20%
26%
36%
5%
0%
<20%
20% - 49%
50% - 75%
76% - 100%
% of revenues environmental activities
Source: Impax Asset Management and BNP Paribas Asset Management. FactSet, WM Reuters, data as at 31 December 2015. There is no guarantee that the performance objective will
be achieved. Investors should ensure that they are fully informed about the sub-funds, classes and sub-classes of shares that are authorised to be marketed in their country of residence
and the constraints applicable in each of these countries. The investments in the above funds are subject to market fluctuations and the risks inherent in investments in securities. 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.
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Parvest Aqua leverages on our successful water strategy
A well established investment process
UNIVERSE:
20% of company activity
linked to the water theme for
getting into the investment
universe
GLOBAL EQUITIES
Water Universe Screen (around 300 stocks covering
all the water value chain)
Impax Water Universe (liquidity filter = 240 stocks)
PROPRIETARY QUANTITATIVE
SYSTEM:
 Proprietary process based on
Financial Metrics to screen stocks for
sustainability themes
LEAD ANALYST:
 High Level ESG(2) Analysis
 Business Assessment
LEAD AND SECOND ANALYST:
 10 Steps Analysis on Business Fundamentals, Market
Dynamics and Outlook
 Full ESG Analysis
Source: Impax as at 30 June 2015. For illustrative
purpose only.
(2) ESG: Environmental, Social and Governance
Quantitative Score
First screen (180 stocks on average)
Qualitative Assessment
Second screen (130
stocks on average)
Final Due
Diligence
FINAL LIST
(around 80 stocks)
INVESTMENT COMMITTEE
APPROVAL
AN ENGAGED ENVIRONMENTAL SOCIAL GOVERNMENTAL (ESG) APPROACH:
 based on data provided by renowned worldwide specialists in the field, our selective ESG approach determines which stocks
compose the fund;
 a continuous dialogue with all investee companies is held in order to prevent or minimize any potential ESG risk for the fund.
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A leading investment manager dedicated to resource efficiency
The fund is managed by IMPAX Asset Management, our partner dedicated to the
environmental sector.
 BNP Paribas Investment Partners owns 25% of Impax AM *, an asset
manager dedicated to resource efficiency and environmental markets
since 1998
 Globally based, offices in London, Hong Kong, New York, and Portland
 30 experienced investment team members with multi-disciplinary
backgrounds and regional expertise (average industry experience: 18 years;
sector: 11 years)
 Water related business weights 38% of the €4.2 bn** managed or advised
by Impax
 BNP Paribas dedicated water strategy counts for circa €1.2 bn**
Source: Impax Asset Management as of March 31, 2016
** Assets under advice represent 3.8% of total AUM as at 31 March 2016.
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Fund characteristics: Parvest Aqua
(1)
(2)
Domicile
Luxembourg
Registration
France Switzerland Italy Germany Sweden United-Kingdom Greece Ireland Jersey Luxembourg Netherland Singapore
Liechtenstein Denmark Belgium Portugal Czech Republic Hungary Norway Slovakia
Legal form(1)
Sub-fund of the Parvest UCITS IV SICAV registered under Luxembourg law
Launch date
July 2015
Asset class
Equities – Worldwide – All caps
Benchmark
MSCI World EUR (NR)
Minimum investment horizon
The higher the risk, the longer the investment horizon
Base currency
Euro
SRRI**
6
Fund manager
Hubert Aarts
Bruce Jenkyn-Jones
Maximum management fees
1.75% (Share class C)
Subscription / redemption fees
Maximum 3.0% / No redemption fees
On-going charges
2.20% (Share class C) as at 10 August 2015
Management companies
BNP Paribas Asset Management
Delegated management company : Impax Asset Management
ISIN codes
Share class C: LU1165135440
Investors should ensure that they are fully informed about the sub-funds, classes and sub-classes of shares that are authorized to be marketed in their country of residence and the
constraints applicable in each of these countries. The investments in the above funds are subject to market fluctuations and the risks inherent in investments in securities. 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.
The synthetic risk indicator is determined on a scale from 1 to 7 (7 being the highest risk level). It is subject to a periodical computation and can consequently change over time. We
invite you to consult regularly the KIID
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Parvest Aqua - C share (as at 31/03/2016)
Source: BNP Paribas Asset Management. Data as of 31 Marc 2016. Investors should ensure that they are fully informed about the sub-funds, classes and sub-classes of shares that are
authorised to be marketed in their country of residence and the constraints applicable in each of these countries. The investments in the above funds are subject to market fluctuations and
the risks inherent in investments in securities. 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 or achievement is not indicative of current or future performance.
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Associated risks
Investments in equity can involve significant fluctuations in prices, due for instance to negative information
about the issuer or market. Moreover, these fluctuations are often amplified in the short term.
Sub-funds investing in small caps are 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.
The investments in the fund are subject to market fluctuations and the risks inherent in investments in
securities. 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.
 Capital risk: the value of investments and the income they generate go down as well as up and it is possible that
investors will not recover their initial outlay.
 Liquidity risk: there is a risk that investments made in the sub fund may become illiquid due to an over-restricted
market (often reflected by a very broad bid-ask spread or by substantial price movements), or if their “rating” declines or
their economic situation deteriorates significantly.
 Operational and custody risk: some markets are less regulated than most of the international markets; hence, the
services related to custody and liquidation for the sub-fund on such markets could be more risky.
 Emerging market (and small-cap) risk: sub-funds investing in emerging markets, (small caps or specialised or
restricted sectors) are 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.
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Disclaimer
This material is issued and has been prepared by BNP Paribas Asset Management S.A.S. (BNPP AM)* a member of BNP Paribas Investment Partners (BNPP IP)**.
This material is produced for information purposes only and does not constitute:
1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
2. any investment advice.
This material makes reference to certain financial instruments (the “Financial Instrument(s)”) authorised and regulated in its/their jurisdiction(s) of incorporation.
No action has been taken which would permit the public offering of the Financial Instrument(s) in any other jurisdiction, except as indicated in the most recent prospectus, offering
document or any other information material, as applicable, of the relevant Financial Instrument(s) where such action would be required, in particular, in the United States, to US persons
(as such term is defined in Regulation S of the United States Securities Act of 1933). Prior to any subscription in a country in which such Financial Instrument(s) is/are registered, investors
should verify any legal constraints or restrictions there may be in connection with the subscription, purchase, possession or sale of the Financial Instrument(s).
Investors considering subscribing for the Financial Instrument(s) should read carefully the most recent prospectus, offering document or other information material and consult the
Financial Instrument(s)’ most recent financial reports. The prospectus, offering document or other information of the Financial Instrument(s) are available from your local BNPP IP
correspondents, if any, or from the entities marketing the Financial Instrument(s).
Opinions included in this material constitute the judgment of BNPP AM at the time specified and may be subject to change without notice. BNPP AM is not obliged to update or alter the
information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in
the Financial Instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of
investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable
for a client or prospective client’s investment portfolio.
Given the economic and market risks, there can be no assurance that the Financial Instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other
things, investment strategies or objectives of the Financial Instrument(s) and material market and economic conditions, including interest rates, market terms and general market
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performance and the value of the investments in Financial Instrument(s) may go down as well as up. Investors may not get back the amount they originally invested.
The performance data, as applicable, reflected in this material, do not take into account the commissions, costs incurred on the issue and redemption and taxes.
*
BNPP AM is an investment manager registered with the “Autorité des marches financiers” in France under no. 96002, a simplified stock company with a capital of 67.373.920 euros
with its registered office at 1, boulevard Haussmann, 75009 Paris, France, RCS Paris 319.378.832.
** “BNP Paribas Investment Partners” is the global brand name of the BNP Paribas group’s asset management services. The individual asset management entities within BNP Paribas
Investment Partners if specified herein, are specified for information only and do not necessarily carry on business in your jurisdiction. For further information, please contact your
locally licensed Investment Partner.
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