Schafer Cullen and Water Asset Management Launch Impact Strategy Focused on Water Sustainability
NEW YORK, NY – (June 8, 2021) –Schafer Cullen Capital Management (SCCM) and Water Asset Management, LLC (WAM) are pleased to announce the launch of the Schafer Cullen Water Asset Management Impact Strategy. The strategy invests in companies whose businesses directly help solve water quality and scarcity challenges, while making a measurable and positive impact on water sustainability globally.
The portfolio is managed by Matthew Diserio, President and Co-founder of Water Asset Management, sub-advisor to the strategy. Mr. Diserio has been WAM’s public equity portfolio manager for 15 years and has been in the investing business for 37 years. Water Asset Management is a leader in global water investing with deep industry expertise and an established, repeatable process. The strategy provides access to companies with attractive business models that are focused on solving the water supply and demand imbalances which currently exist.
This portfolio is offered as a Separately Managed Account (SMA) to investors around the world seeking exposure to global water investment companies, themes and opportunities. The strategy is now available through many major custodians. A UCITS version of the strategy is in development with a planned July 2021 launch.
Investments in water are helping to conserve the world’s most precious resource while also offering a compelling investment opportunity. “The water industry is one which delivers an essential resource that has no real replacement competition. When you need water, water is the only thing that will do”, says Mr. Diserio. In addition, a capital spending super cycle is underway to make up for decades of underinvestment in water infrastructure. This provides a potential long-term tailwind for earnings, dividends and asset growth. According to Diserio, “the strategy’s investments in water utilities, water infrastructure providers, water treatment technologies, water resources, and water test control and measurement companies provide an opportunity for long-term capital appreciation and dividend growth as many of these companies have positive pricing power which is both durable and inflation protected.”
Investing in Water can be considered ESG investing but more importantly, it is also Impact investing. In 2015, the United Nations released 17 Sustainable Development Goals (SDG) as a blueprint for peace and prosperity for people and the planet. One of those goals (SDG 6) is to “ensure access to water and sanitation for all.” This investment strategy is focused not only on generating returns for investors but also to accelerate progress towards the UN’s Sustainable Development Goal of water access for all by collaborating with portfolio companies.
WAM is committed to impacting change directly by donating a portion of the strategy’s investment fees they receive as sub-advisor to WaterAid, the world’s largest water and sanitation focused charity. Since 1981, WaterAid has provided access to clean water and sanitation to more than 26 million people in the developing world. Additionally, WAM will systematically encourage portfolio companies to provide capital, technical assistance, personnel support and other resources to support WaterAid’s water and sanitation programs.
Schafer Cullen Capital Management
Schafer Cullen Capital Management (SCCM) was founded in 1983 and is based in New York. The firm employs a research team of 17 financial professionals, managing approximately $19.7 Billion in assets under management and advisement (as of 3/31/2021). The firm is independent and fully employee owned. Schafer Cullen Capital Management provides clients with discretionary portfolio management services focused on disciplined Value and dividend investing.
Water Asset Management, LLC.
Water Asset Management (WAM) is an investment manager founded in 2005 that is focused on the global water and water infrastructure industry and will be providing sub-advisory services to Schafer Cullen Capital Management, Inc. for the strategy. WAM acts as the investment manager on multiple water investment vehicles for a variety of qualified investors and places great importance on its responsibility to provide investment management services offering the best long-term risk-adjusted returns possible, consistent with investor requirements. WAM’s public equity investment opportunity set includes over 250 global companies, which help ensure the supply and quality of water from one of five distinct water industry segments: water infrastructure and services, water utilities, water treatment technologies, water test control and measurement and water resources.
WAM aims to act as a responsible investor in the water industry and contribute broadly to well-being and sustainable development through active ownership. WAM measures impact of its portfolio companies such as water delivered, water treated water and sanitation services provided and energy consumed. WAM also integrates environmental, social and governance (ESG) criteria into water investment decision-making to enhance positive impact and long-term risk-adjusted financial returns.
For additional information, please contact Chase Montgomery at 312-810-8119 or [email protected].