Swedish national pension fund AP1 and the BAE Systems pension fund are among investors in a water infrastructure fund launched by Resonance Asset Management.

The fund, targeting assets in Europe and Asia, has attracted $300m (€269m).

Resonance, part of Australia’s Fidante Partners, said the fund was the first to focus solely on the global industrial water-treatment industry, which it said was worth £53bn (€63bn).

Mikael Angberg, chief executive at AP1, said its commitment was part of a wider strategy to promote sustainable investment.

“Water scarcity and water-treatment issues are cornerstones of AP1’s resource efficiency-focused sustainability strategy,” he said.

“We are therefore very excited to be partnering with Resonance in the first institutional fund exclusively focused on financing industrial water-infrastructure projects.”

Vikram Aggarwal, alternatives investment manager for the BAE Systems pension fund, said generalist infrastructure funds had “historically overlooked” water, mainly because projects were considered too small and bespoke.

A first investment for the fund has been made in a coal-to-chemical waste-water reuse plant in China, according to Lydia Whyatt, managing director of water investments.