Momentum H2O USA

The investment strategy follows a systematic momentum approach focused on US water-related equities. The investment universe consists of the US-listed companies held in the iShares Global Water UCITS ETF, covering water utilities, infrastructure, treatment, distribution and water technology. Water is by nature a calm and resilient sector. Demand is structural and largely independent of the economic cycle, many companies operate under regulated, predictable revenue models, and long-term growth is supported by ageing infrastructure, population growth, water scarcity and stricter quality standards. This gives the strategy a stable foundation of steady, defensive growth. Momentum is the extra layer on top of that foundation. Stocks are selected based on clearly defined momentum criteria, combining 6-month and 12-month relative price performance, to identify the water companies showing the strongest and most persistent price trends at any given time. The portfolio is reviewed and rebalanced every quarter, on 21 March, 21 June, 21 September and 21 December. Stocks that no longer rank among the strongest may be replaced by companies with better momentum characteristics. The strategy holds the ten highest-ranked stocks, equally weighted, rather than replicating an index, and no discretionary attempt is made to predict short-term market movements. Positions are typically held for one quarter, but may remain for several consecutive periods if they continue to meet the criteria. Positions may also be sold earlier for risk management purposes or in exceptional market circumstances. Investment decisions are based primarily on quantitative market data, historical price performance and momentum rankings. Publicly available financial information is used as an additional source. The objective is to combine the defensive, steady-growth character of the water sector with a transparent, disciplined and repeatable momentum process.