New Ireland Water

Water Fund S11 invests in the KBI Water Fund, which focuses on companies involved in water infrastructure, water technology and utility water businesses. The underlying fund is managed by KBI Global Investors and the portfolio includes names such as Xylem, Veolia Environnement and California Water Service Group. In simple terms, this means the fund is concentrated in businesses that help build, manage or improve water systems.

Water Fund S11 is intended for investors with a medium to long-term outlook of at least 5 to 7 years. It is classified by New Ireland as High Risk, so it may suit investors who can tolerate significant ups and downs in value. The fund may appeal to those who want targeted exposure to the water theme rather than a broad market fund.

Water Fund S11 is classified as a Light Green or Article 8 fund because it promotes environmental or social characteristics and invests in companies that follow good governance practices. The fund does not, however, take the EU definition of environmentally sustainable economic activities into account for its underlying investments. In plain language, it has an ESG tilt, but it is not the same as a fund that only invests in fully sustainable activities under EU rules.

Water Fund S11 is classed as High Risk and its value can fluctuate over time, especially in volatile equity markets. Its key identified risk is sustainability risk, which means environmental, social or governance issues could affect the companies it holds and therefore the fund's returns. Because it is equity-based, it can also fall as well as rise with share prices.

Water Fund S11 is a specialist equity fund with a single named theme: water. It targets companies across the water infrastructure, water technology and utility water segments rather than spreading investments across many industries. That focus can make it more distinctive than a general equity fund, but it also means performance will depend heavily on the fortunes of the water sector.