We cannot live without water, nor can we substitute it with something. Although water is not an exhaustible natural resource, only less than 1% of the world's water resources can be exploited by humans. In addition, the volume of fresh water reduces continuously as a consequence of pollution, groundwater depletion and climate change. At the same time, population growth and rising living standards increase water consumption everywhere. In the US, for example, the need for clean water has tripled in 30 years although the country's population has only doubled in the same period. In China, shortage of clean water is already a problem in two thirds of the country's cities and their strong growth only aggravates the water stress. Indeed, water has become a challenge everywhere. Advanced economies pour money on modernisation of their deteriorating water infrastructure. In developing economies, investments focus on building functioning water supply and curbing pollution. Enormous investments will be required to ensure water supply already in the coming years.
Solutions to water problems lie in innovations related to consumption, distribution and purification. Companies which succeed in making the availability and distribution of clean water more efficient will be at the cutting edge. For an investor, the equation is simple. The price of clean water will rise. Demand for water expertise will grow. Since water problems are global, clean water investment quite naturally offers geographical diversification for the investment portfolio, while the industry's versatile corporate structure enables investing in both growth and value companies.
OP-Clean Water is suitable for responsible investors seeking return for their money and wishing to contribute to solving problems related to clean water sufficiency. Because the fund invests its assets on the stock market, its value can fluctuate markedly depending on the market situation and, investing in accordance with the water theme, these stocks' value performance may deviate considerably from the general stock market performance. For stock investments outside the euro area, the fund is also exposed to currency risk. This fund is mainly recommended to an investor who intends to redeem his/her units after nine years at the earliest.