NH-Amundi Asset Management Lists 'HANARO Global Water MSCI (Synthetic) ETF'

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[Asia Economy Reporter Hwang Yoon-joo] NH-Amundi Asset Management will list an exchange-traded fund (ETF) investing in companies related to sustainable water resources on the 19th.

NH-Amundi Asset Management announced that it will list the 'HANARO Global Water MSCI (Synthetic) ETF.'

This ETF tracks the MSCI ACWI IMI Water ESG Filtered Index published by the global index developer MSCI. The index is composed of companies involved in water supply, water utilities, water treatment, and water-related equipment that meet ESG (Environmental, Social, Governance) criteria, weighted by market capitalization.

Notably, companies that do not comply with the UN Sustainable Development Goals (SDGs) related to ‘healthy and safe water management,’ ‘climate change response,’ and ‘marine ecosystem conservation,’ or those without sustainable water-related revenue, are excluded.

As of the end of February, the underlying index consists of 39 water-related companies from 10 countries, mostly advanced economies such as the United States (56%), the United Kingdom (12%), France (7%), and Japan (6%). The water-related industry is classified under the Global Industry Classification Standard (GICS) as companies involved in water supply, water facilities, water treatment, and related equipment.

The top holdings in the index include Veolia Environnement (6.4%), Waste Management (5.9%), American Water Works (5.7%), Graco (5.5%), and United Utilities Group (5.3%).

According to the Groundwater Foundation, water is the most important resource and commodity in the world, with less than 1% of the Earth's total water resources available as freshwater. Grand View Research estimates that the desalination market will grow to $22 billion by 2028.

Park Hak-joo, CEO of NH-Amundi Asset Management, said, "The HANARO Global Water MSCI ETF will not only invest in the sustainable water resources industry but also become a representative method of ESG investment."

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