Thomas Schumann Capital® selects C8 Technologies as the Direct Indexing platform for the TSC Water Risk Indices on a global scale
TSC US and Euro Water Risk Indices® deliver an average 65% lower Water Footprint than their equity benchmarks while providing sustainable equity performance.
London, 26th January, 2021 – A ground-breaking collaboration between Thomas Schumann Capital®, the world’s only solution provider for water security and responsible investing, and C8 Technologies, the leader in Direct Indexing, will deliver the first-of-their-kind TSC US Water Risk Index® and TSC Euro Water Risk Index® directly to global investors.
Direct indexing via the C8 platform allows asset owners – such as pension funds, family offices, asset managers, and endowments – to take advantage of the flexibility of investing directly in the underlying index constituents, customised to their particular requirements.
“Nearly a third of the world is subject to water stress, a burgeoning crisis that only promises to get worse,” Schumann said. He further explains that “as climate change exacerbates droughts and flooding, and as population growth fuels the ever-growing demand for water, operating and financial risks to businesses will increase. Looking ahead, we believe that companies with good water management practices are positioned to be tomorrow’s market winners.”
C8’s CEO Mattias Eriksson said that “We are excited to welcome the innovative TSC Water Risk Indices onto the C8 platform which will enable asset owners or managers to easily trade the underlying assets of the Indices and, by so doing, keep full control of their capital. Importantly, the platform also gives full transparency of any investments, which aligns well with ESG values. With their socially responsible aims, the TSC Water Risk Indices® are ideal to host on our platform.”
The TSC Water Risk Index® is a systematic, rules-based thematic investment strategy designed to provide both financial performance and to advance a water-secure future. Thomas Schumann Capital’s investment ethos is guided by support for the UN Sustainable Development Goals framework, in particular, SDG 6 – sustainable management of water. The innovative suite of indices helps forward-looking investors to anticipate, and capitalize upon, listed companies’ growing exposure to the financial and operating risks created by future reduced access to water resources, while rewarding good corporate water stewardship.
Unlike existing water indices, which invest solely in a concentrated basket of water purification manufacturers and water utilities, the TSC Water Risk Indices provide exposure to a diversified basket of large-capitalisation companies across all sectors while tracking UNSDG 6.
Over the five-year back-test from October 30, 2015, through December 31, 2020, both regional TSC Water Risk Indices outperformed their benchmarks in the US and Eurozone while having an average 67% lower Water Footprint than the US benchmark and a 62% lower Water Footprint than the Eurozone benchmark.
“The world needs sustainable solutions that reward investors while encouraging good corporate water stewardship for a sustainable future,” Schumann continued. “That’s why I sponsored this index and why we are so excited to collaborate with C8 to offer it to global investors at the lowest cost and with the greatest transparency and highest degree of control over their capital,” he said.