Environmental Sustainability and the Acuity Clean Environment Mutual Funds

Investment Approach

Launched in 1991, the Acuity Clean Environment Equity Fund focuses on resource optimization and sustainability. The investment opportunity in environmental companies has become increasingly attractive in recent years. Driven by a number of significant developments, such as rising commodity prices, climate change and technological advances, global demand for environmental products and services has grown dramatically.

The Acuity Clean Environment Equity Fund has acquired a reputation for innovation and investment success over the long term. This Fund provides long term capital appreciation by investing in a targeted portfolio of equity securities that are leading innovators in the provision of product and service solutions to key environmental issues as defined by the Fund.

Key Environmental Investment Themes

Waste Management and Pollution Controls

Issue: Reduction, handling and disposal of final waste materials are of critical importance in all industrial sectors given the potential for penalties and long term liability.
Opportunity: As standards for waste emissions become more stringent in all jurisdictions, opportunities are emerging for technologies that reduce the quantity of waste for removal, and which render the remaining waste safer for handling and disposal. Over the long term, therefore, we expect to see continued strength in the market for companies with pollution control equipment.

Water and Wastewater Solutions

Issue: According to estimates by the United Nations, approximately one third of the global population is currently living in water-scarce areas. Through climate change and population growth, however, it is predicted that this figure will rise significantly.
Opportunity: Mounting concerns over the availability and quality of water leads us to anticipate that water stress will be a top policy issue for governments over the next few years.We therefore believe that favourable regulatory developments for the water sector are increasingly likely to provide opportunities for water purification, waste water treatment and desalination technologies.

UNEP Finance Initiative

Acuity was selected as the only Canadian member of the United Nations' Environment Programme Asset Management Working Group. This unique group was established in part to advise the UN on integration of environmental criteria within institutional investment management.

Energy and Power Solutions

Issue: Global economic growth and dwindling supplies have resulted in significant price increases for key energy commodities. In addition, climate change is forcing significant innovation in energy consumption patterns.
Opportunity: In this context, energy efficiency and alternative energy solutions are becoming increasingly important.We anticipate significant growth opportunities for companies that offer alternative energy (wind, solar, biofuel etc.) and process efficiency solutions over the next few decades.

Human Health and Safety

Issue: Higher population density in urban areas and transportation efficiencies have raised concerns regarding the potential for increased illness and death from the spread of infectious diseases. In addition, aging industrial infrastructure in developed nations require a greater focus on occupational health, safety and environmental (HSE) practices.
Opportunity: As awareness over the potential impact of infectious diseases grows, we believe there will be opportunities for investment in companies that develop more efficacious anti-viral drugs and vaccines, as well as those that provide health services and sanitation technologies.We also expect HSE solutions providers, including those who provide onsite emergency response, testing equipment, and training to benefit from higher environmental and safety standards.

Credentials are Key

Acuity Investment Management Inc., founded in 1990 has gained a well-earned reputation for disciplined investment management of Canadian and global portfolios. Using a team approach, Acuity successfully manages four fund families - Acuity Mutual Funds, Acuity Clean Environment Mutual Fund, Acuity Social Values Mutual Funds, and Acuity Pooled Funds - in addition to closed end funds, pension, institutional and private portfolios. Acuity's success on behalf of the Clean Environment Equity Fund has been the result of experienced management, rigorous research and the agility and insight necessary to take advantage of market opportunities. The Acuity Investment Team shares a unique combination of financial and scientific expertise, allowing them to analyze companies from a technological, environmental and financial perspective.