The Tortoise Sustainable Global Water UCITS Fund seeks to invest in companies across the globe and throughout the water value chain that we believe are in a position to benefit from the pursuit to solve the water supply/demand imbalance.
Fund Stats as of 10/07/2020:
NAV
£100.54
NAV Change
£0.62
Legal Structure
UCITS
ISIN
LU2066076451
Distribution Policy
Accumulating
Base Currency
GBP
Management Fee (Founders, Share Class for Institutional Investors)
0.60%
Minimum Investment (Founders, Share Class for Institutional Investors)
€2,500,000
Luxembourg Subscription Tax Rate (Institutional)
0.01%
Philosophy
We believe increased investment in water infrastructure and technology will be key to economic growth and social stability as the world’s growing population increasingly confronts water scarcity.
Global water crisis
Water has attracted an increasing amount of investment and consideration for a number of reasons, namely the following:
- Water shortages
- Water quality concerns
- Deteriorating water infrastructure in
developed countries - Need for water infrastructure in
emerging markets
Technology Focus
We believe technology will play a key role in the transformation of the water sector
- Higher-end technologies expected to continue to command premium multiples over commoditized offerings due to growth opportunities and barriers to entry
- Higher-end technologies include smart water networks, desalination, treatment, filtration and testing
Investment opportunity
- Compelling market opportunity potential as water emerges as an asset class
- Significant investment opportunity in water infrastructure and technology driving attractive total return potential
- Growing universe with increased capital market activity highlighting value of water businesses
- Long runway of growth opportunities arising from global water supply/ demand imbalance
- Impact investment as water is an essential asset that drives economic growth and social sustainability
- Diversification benefits with low correlation to equities
Fund Information
As of 19/05/2020
Base Currency
EUR
Launch Date
01 August 2019
Currencies
USD / GBP / EUR / CHF / SEK
Share Classes
Retail (R), Institutional (I)
Management Fee (Retail) 1
1.25%
Management Fee (Institutional) 1
0.85%
Management Fee (Founders, Share Class for Institutional Investors)
0.60%
Minimum Investment (Retail)
€1,000.00
Minimum Investment (Institutional)
€250,000.00
Minimum Investment (Founders, Share Class for Institutional Investors)
€2,500,000
Distribution Policy 2
Accumulating
Distribution Policy 2
Accumulating
Total Net Assets
TBD
Luxembourg Subscription Tax Rate (Retail)
0.05%
Luxembourg Subscription Tax Rate (Institutional)
0.01%
Legal Structure
UCITS
Subscriptions and Redemptions
Daily
Redemption Settlement
3 business days
Administrator
BNP Paribas Securities Services, Luxembourg Branch, 60, avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg
Non-founder classes, per annum on the net asset value of the fund.
Total expenses do not exceed 1.6% for the institutional and 2% for the retail share classes.
For distributing shares, dividends will be declared and distributed quarterly
Tortoise Ecofin® Platform
The Tortoise Ecofin Platform focuses on sustainability and impact strategies, harnessing years of investment expertise in infrastructure, water and the energy transition theme, including listed and private renewable energy infrastructure.
UN Sustainable Development Goals
Our strategies align with the following UN Sustainable Development Goals to help achieve sustainable energy and water sources.
Portfolio Exposure (% of NAV)
As of 31/05/2020
Ten Largest Holdings
| Company | % of Total |
|---|---|
Danaher Corp. | 10.0% |
American Water Works Co. Inc. | 9.1% |
Essential Utilites Inc. | 7.4% |
Xylem Inc. | 7.1% |
Evoqua Water Technologies Corp. | 4.2% |
| Company | % of Total |
|---|---|
Tetra Tech Inc. | 4.2% |
Veolia Environnement SA | 3.9% |
American States Water Co. | 3.8% |
Guangdong Investment Ltd | 3.7% |
IDEX Corp | 3.6% |
Top 10 Positions as % of Investment Securities 57.0%
Fund holdings are subject to change and are not recommendations to buy or sell any security. Reflected as a percentage of long-term investments.
Disciplined investment process
Through our in-house research coverage of companies throughout the entire water value chain, Tortoise’s investment process uses a bottom-up, fundamentals-based approach. Tortoise believes its process is a competitive advantage, enabling it to evaluate risk and reward intelligently across the water infrastructure universe.
Step 1: Qualitative analysis
Proprietary risk models are used to select companies with high quality assets, effective management, stable cash flows and ESG factors
Step 2: Quantitative analysis
Proprietary financial models are employed to understand growth prospects, liquidity position and sensitivities to key drivers
Step 3: Relative value
Proprietary valuation models are used to determine portfolio weightings
Potential total return drivers
Deep backlog of infrastructure projects
- Entire water value chain is expected to benefit from infrastructure buildout
- Private investment will play a significant role in infrastructure improvement
Maximizing water supply
- Reduction in water loss, along with alternative sources of supply, including water reuse and desalination, will be
needed to meet expected demand - Companies providing solutions in these areas are likely well positioned for growth
Efficient water usage
- Demand should increase for technologies or products that improve water efficiency
- Companies that participate in these areas will likely benefit Rising water prices
- Higher water rates will likely be needed to justify returns on infrastructure expenditures
- Infrastructure investment will likely filter to end users via higher water prices
Net Performance as of 30/06/2020
| Date | Class/Name | QTD | Since Inception |
|---|---|---|---|
| 30/06/2020 | Tortoise Sustainable Global Water Fund (EUR) | 9.31% | 5.08% |
| 30/06/2020 | S&P Global Water Total Return Index (EUR) | 10.00% | 6.18% |
Net Performance as of 30/06/2020
| Date | Class/Name | Calendar YTD | Since Inception |
|---|---|---|---|
| 30/06/2020 | Tortoise Sustainable Global Water Fund (EUR) | -6.49% | 5.08% |
| 30/06/2020 | S&P Global Water Total Return Index (EUR) | -8.60% | 6.20% |
| 30/06/2020 | S&P Global Infrastructure Index (EUR) | -19.78% | -12.63% |
*The fund commenced operations on 6 August 2019.
Source: Bloomberg for S&P Global Water Total Return Index (Euro) (SPGTAQD) and S&P Global Infrastructure Index (Euro) (SPGTIND).
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Returns may increase or decrease due to currency fluctuations.
The Tortoise Sustainable Global Water Fund performance includes the effect of ongoing costs (including the management fee) which are capped at 1.6% per annum for institutional investors and 1.35% for Founder investors, whereas the S&P Global Water Total Return Index (Euro) (which provides liquid and tradeable exposure to 50 companies from around the world that are involved in water related businesses) and the S&P Global Infrastructure Index (Euro) (which is designed to track 75 companies from around the world chosen to represent the listed infrastructure industry while maintaining liquidity and tradability) do not apply a corresponding deduction for ongoing costs of a fund. (The performance of an index is generally presented on a total return basis, i.e., assuming reinvestment of dividends net of withholding taxes using the tax rates applicable to non-resident institutional investors.)
Neither the S&P Global Water Total Return Index (Euro) or the S&P Global Infrastructure Index (Euro) are specifically referred to in the Prospectus of the fund, and shall not be considered as a benchmark in the sense of the Benchmarks Regulation, and Tortoise does not give any representation or warranty with its fitness for a particular purpose in comparative performance.
Tortoise Sustainable Global Water UCITS Fund TSGWU
Ecofin Platform
18/06/2020
Tortoise Sustainable Global Water UCITS Fund 1Q2020 Commentary
Ecofin Platform
15/08/2019
Introducing the Tortoise Sustainable Global Water UCITS Fund
This Fund is passported in Luxembourg, the UK, Norway, Denmark, Switzerland, Sweden and France; access to information on this Fund is not intended for prospective European investors outside of these jurisdictions other than under a local regulatory exemption.