Water Investment

Overview of investing in water

Although 70% of the earth’s surface is water, less than 1% is freshwater - the water we use for agriculture and domestic use. Demand is rising, with huge pressure from the agricultural sector, and a rising domestic need. Important trends in this sector, with water shortages, include water recycling and desalination.

How water funds are managed

Water Investment funds within this theme invest directly in water companies. These companies may have interests in water infrastructure, s uch as pipes and transportation, or water treatment, ranging from production of valves to construction of treatment plants. Most are actively managed, but some track indices weighted towards water.

Investor approach to water

As a long term investment, investing in water companies looks to be a good opportunity, with water prices likely to rise at a rate over inflation. These funds are invested in companies operating with water efficiency, desalination and re-cycling which will be in high demand as prices rise and water becomes scarce. Historical performance has been positive, but water is fundamental to human life and as such public policy remains both an opportunity and a threat to water company profits.