Pathfinder Global Water Fund

Product Name

Pathfinder Global Water Fund

Issuer

Pathfinder Asset Management

Category

Investment product

Type

Fund/Trust

Target

Retail

Certified Since

2018

Certification Symbol

Responsible Investment

Asset Classes

Equities - International markets

Markets

New Zealand

Investment Approaches

Sustainability themed, ESG Integration, 1 - negative screening (a range of revenues are excluded ie tobacco, thermal coal etc) 2 - positive screening (selection of highest ESG scoring companies) 3 - norms based screening (NZ Super Fund exclusions) and 4 - Controversy Screening (exclusion of stocks with significant current ESG issues based on news flow, lawsuits etc)

It Includes

  • Riaa icons 11 More sustainable companies
  • Riaa icons 31 Sustainable water
  • Riaa icons 30 Sustainable land management & agriculture
  • Default selected inclusion No specific inclusions

It Excludes

  • Riaa icons 33 Fossil fuels
  • Riaa icons 35 Tobacco
  • Riaa icons 50 Nuclear energy (including uranium)
  • Riaa icons 38 Labour rights violations
  • Riaa icons 56 Animal welfare
  • Riaa icons 36 Armaments
  • Riaa icons 41 Alcohol
  • Riaa icons 42 Gambling
  • Riaa icons 55 Pornography
  • Riaa icons 45 Genetic engineering
  • Default selected exclusion No specific exclusions

Overview

Objectives: (1) invest in companies involved in the water industry that satisfy Pathfinder’s socially responsible investment screening and (2) achieve a medium to long-term return higher than the NASDAQ OMX Global Water Index, 50% hedged to NZ dollars. Water companies cover a wide range of activities, including water utilities, filtration, monitoring technology and the manufacture of pumps, pipes and irrigation equipment. The fund does not invest in bottled water.


Description


Our Global Water Fund is an ethical equity fund intended to be a satellite global equity exposure for responsible investors.  
 
The fund directly invests in 50-100 listed water companies.  The ethical screening for stock selection has multiple layers:
 1 - several exclusion screens are applied including the NZ Super Fund exclusions list and additional revenue exclusions for gambling, tobacco, thermal coal, pornography, controversial armaments and bottled water.
 2 - stocks with high current operational "controversy" levels are excluded (i.e. significant current ESG issues based on news flow, lawsuits etc)
 3 - portfolio selection optimises the highest portfolio ESG score that will satisfy the Pathfinder Investment Committee targets for geographic spread and other portfolio factors (dividend, volatility, growth, company size etc).    ESG is treated as an investible factor.
 
 Our stock selection process uses research and ratings from 2 sources:
 1 - Sustainalytics (we were their first client in NZ)
 2 - our in-house research (we have a full-time specialist ESG analyst)
 
 Currency exposure in the Global Water Fund is partly hedged with a base target of 50%.

Other products certified by the Responsible Investment Association Australasia (RIAA)

Pathfinder Global Responsibility Fund

Find out more