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January 11, 2019

Wealthy urged to invest in waste as one of ten themes for 2019

By Oliver Williams

BNP Paribas Wealth Management is advising its clients on investments in waste management, as it identifies the sector among its 10 investment themes for 2019.

“This theme identifies investment opportunities in companies offering innovative solutions for water management and more efficient waste treatments”, BNP said in a statement on Tuesday.

The wealth manager’s 2019 Investment Themes outlines why: “Many companies contribute to the development of new, more effective and cleaner mechanisms for water and waste treatment. Given the high potential growth in this activity, they represent an attractive investment opportunity in the long term.”

This theme is likely to be popular among the rising number of impact investors, people who invest in companies creating a positive social or environmental impact. Water and sanitation was the second most important cause for impact investors after health according to a report by Barclays Bank.

Many impact investors score their target companies using the UN Sustainable Development Goals. One such goal is to half food waste at the retail and consumer level by 2030. Currently, a third of all food is wasted according to the UN.

Hand-in-hand with waste management, BNP believes, will be a greater focus on mobility in order to tackle the saturated and polluted transport systems of ever-growing cities.

10 investment themes for 2019

Beyond waste and mobility, BNP Paribas Wealth Management identifies eight other investment themes for 2019.

“The first two investment themes are dedicated to investors who do not want to take a lot of risk,” Florent Brones, CIO of BNP Paribas Wealth Management, told PBI. These two themes include real assets and solid companies.

BNP’s predictions include two Asian investment themes for 2019: That China will further internationalise its financial markets. “They want to attract capital from the outside which means they want to internationalise the bond markets,” Brones explains. The other issue concerns trade tensions, which Brones believes will be positive for some countries “for example Vietnam”.

Equity investments BNP believes will see growth include cybersecurity,  health and well-being and a fourth industrial revolution.

“The investment themes are dedicated to the huge diversity of clients we have,” explained Brones. “Some are ready to take a lot of risks others are very different.”

 

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