WAT.PA - Risk

Risk & Diversification Scores

Transparent evaluation of price volatility (SRI) and 4-dimensional portfolio diversification.

Volatility Risk Score

5/7 Elevated

5 / 7 SRI PRIIPs Risk Class

Above-average volatility. Suitable for experienced investors with high risk tolerance (5+ years horizon).

Volatility (5Y)

14.5% p.a.

5-Year Horizon

Max Drawdown (5Y)

-24.4%

Deepest Drawdown

Sharpe Ratio

0.13

Moderate (0.0 - 0.5)

Rec. Holding Period

5 - 10+ Years

Investment Horizon

Elevated Risk / Growth: Score Basis:

Diversification Score

Focused (35% – 50%)

45 / 100 Portfolio Diversification

4 Dimensions: Holdings (30%) • Sectors (25%) • Industries (25%) • Regions (20%)

Focused weighting: Top holdings drive a major share of fund returns.

Top 10 Holdings

42.2%

Focused

Effective Holdings

~37

of 45 holdings

Top Sector

75.1%

Industrials

Top Region / Country

62.3%

United States

Elevated concentration in top individual holdings, leading sectors, or key regions.

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Stable Long-Term Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+0.4%
3 Years	13.2%	-17.5%	0.47	+8.6%
5 Years	14.5%	-24.4%	0.13	+4.3%
10 Years	15.8%	-36.3%	0.3	+7.3%

Notes & Warnings

🟢 Favorable / fair valuation: Avg P/E of 15.6

🟢 Deep market liquidity & capital coverage (Tier 1)

🟢 Established large fund (> 500M € AUM)

🟡 Moderate analyst coverage (10.8 analysts)

🔴 Severe sector concentration risk: 75% in "Industrials".

⚠️ Industry concentration: 39% in "Specialty Industrial Machinery".

🔴 Dominant Cyclicality: 66% in cyclical industries – higher drawdown risk in recessions.

⚠️ Elevated Regulatory & Policy Risk: 44% in heavily regulated industries (defense, regulated utilities, healthcare policy).

🟢 Strong Long-Term Stability: The asset exhibits consistently low volatility across 5 and 10 years (<16% p.a.).