Water Opportunities Separately Managed Account Program (WO SMAP) Market Update

After many discussions with, Water Asset Management, sub-adviser to ELCO’s Water Opportunities SMAP, and our own industry observations, we wanted to communicate our thoughts regarding your investment in the program. The portfolio has benefitted from the defensive nature of the regulated water utilities and the essential infrastructure and services these companies provide. However, there are other fundamental reasons to be positive on the space including the fragmented nature of the U.S. water municipalities, a growing number of states adopting fair market valuations for acquisitions, and the industry’s thematic “ESG” characteristics.