FuW Fund Portrait: Water – the elixir of all life

Water concerns us all. The human body consists of up to 65% water, and this sometimes cold liquid is the elixir of all life.
of all life, and access to it is not guaran­teed equally well every­where on our planet. This is not only true in Africa, where there is generally suffi­cient rainfall, as Stefan Schütz, fund manager of the Tareno Global Water Solutions Fund, explains.

The issue is also accom­pa­nied by problems in the industria­lised count­ries of the West. These are always the same four problems. ‘The issues are the same across all regions and can be catego­rised,’ says Schütz. For example, there is either too much or too little water, or access or the quality of the water is too poor.

Strongly regional theme

Accor­ding to Schütz, the fact that these topics have an impact across regions is also due to the fact that water is very much a regional issue. ‘The issues surroun­ding water in Basel, for example, are comple­tely diffe­rent to those in Zurich.’ Accor­ding to Schütz, this is also the biggest chall­enge and oppor­tu­nity as the manager of this fund. After all, there will be no company that dominates the market in a winner-takes-it-all manner and drives returns. But there will always be small and medium-sized compa­nies that profi­tably realise the topic of water in their region. This is why, accor­ding to Schütz, the fund also focuses on small and mid-cap compa­nies.

As early as 2024, but also in the current year, it is the infras­truc­ture programmes in parti­cular that will shape the water-related market,
explains Schütz. In the USA, they have already been initiated by Joe Biden, and Donald Trump is expected to further boost spending. There are also some trends that speak in favour of water as an invest­ment, says Schütz. ‘Chip produc­tion requires ultra-pure water. In order for this water to be made available, invest­ments in infras­truc­ture are needed.