Tareno Water Fund: Development of the water sector in November 2025

Political Framework: From Regulation to Investment

Two key policy developments shaped the landscape in November:

1. Europe: Climate-resilient infrastructure: Discussions around decarbonisation in Europe made one point unmistakably clear: without reliable and secure water availability, neither the energy transition nor industrial expansion plans can be realistically implemented. Investment in resilient water infrastructure is becoming an unavoidable necessity.
2. United Kingdom: Regulated investment momentum: Despite ongoing public scrutiny and regulatory debate, UK utilities are required to carry out multi-billion-pound investment programmes. The pressure to modernise ageing infrastructure remains immense.

By contrast, the United States continues to exhibit structurally elevated investment needs. Even as certain environmental standards were relaxed at the federal level, issues such as PFAS remediation, the renewal of ageing water networks and, increasingly, the rising water demand of the data-centre industry, are driving a significant and sustained investment cycle across the sector.

Market Developments and Corporate Updates

Companies across the water sector are responding to these structural drivers with a clear focus on innovation and operational efficiency.

A compelling example comes from SABESP, the water utility of São Paulo, which announced a large-scale leakage-reduction programme. In collaboration with Amazon Web Services and Aganova, approximately 64 kilometres of pipelines will be inspected over the next ten years, with expected annual water savings of around 210 million litres. Beyond its environmental value, the initiative is economically attractive: every leak avoided reduces energy consumption, operating costs and future capital expenditure requirements.

The shift is even more pronounced in the field of water quality testing. Veralto strengthened its leadership in real-time water monitoring through the acquisition of a specialist in water-quality analytics. The sector is moving rapidly toward data-driven value creation. Those who provide the most reliable measurements will set the standards, shaping efficiency gains, regulatory compliance and cost structures across the value chain.

A similar dynamic is evident at Itron. With a major digital infrastructure contract awarded in the United Kingdom, the company reaffirmed that smart metering is well on its way to becoming a global industry standard. Political pressure to reduce water losses, combined with utilities’ operational need for transparency, continues to reinforce this trend. Networked metering systems not only enhance operational efficiency but also open the door to advanced management tools—from demand-responsive network operations to usage-based tariff structures.

ESG-Update: COP-30 & SFDR-Reform

COP-30 concluded on 22 November with a pledge to triple global financing for climate-adaptation measures by 2035, corresponding to annual funding of roughly USD 1.3 trillion. In parallel, the European Commission presented on 19 November the most comprehensive reform proposal for the Sustainable Finance Disclosure Regulation (SFDR) since its introduction. The existing Article 8 and Article 9 categories are to be replaced by three new classifications: Transition, ESG Basics, and Sustainable.

Fund Performance & Outlook

The W-EUR share class of the Tareno Global Water Solutions Fund returned –0.03% in November. Despite the slightly negative monthly performance, the Fund remained resilient in a volatile market environment. The solid development of water-sector companies continues to validate our long-term investment thesis.

The recently renewed expectation of a Federal Reserve rate cut in December is likely to support markets, and we therefore anticipate a constructive end to the 2025 calendar year. We remain committed to our defensive positioning.