How to make a splash with Liquid Assets? Why investors are buying into the world’s supply of water and it has been dubbed ‘blue gold’
- Climate change is said to be causing drought in some areas and flooding in others.
- WWF predicts that two-thirds of the world’s population may face water scarcity by 2025
- New funds launched focusing on water treatment and purification technology
The world will always need water, so surely this is a wise investment?
The H20 is a precious commodity and is becoming increasingly rare, leading some to call it ‘blue gold’.
The global water industry is also expected to be worth a trillion dollars a year within a decade.
Precious commodity: Global water industry expected to hit a trillion dollars a year within a decade
According to the World Wildlife Fund (WWF), climate change is understood as a change in weather patterns – causing water shortages and droughts in some areas, and devastating floods in others.
Brazil is in the grip of its worst drought this year, meanwhile Madagascar’s shortage is so severe it is causing famine.
At the same time, more than 180 people died due to floods in Germany and Belgium this summer.
WWF predicts that by 2025, two-thirds of the world’s population may face water scarcity unless a solution is found.
Rob Bergman, investment manager at Wealth Advisors Bruin Dolphin, says there are funds available to retail investors who are focusing on the future of treatment and purification of water services.
The H20 is a precious commodity and is becoming increasingly rare, leading some to call it ‘blue gold’.
He says: ‘There will be few countries that do not need to invest billions over the next 20 years to improve their water and waste services while addressing water scarcity.
‘As an investor, there are ways to gain access to this through the selection of Exchange Traded Funds (ETFs) and funds that provide exposure to this important industry.
‘As always, it is always best to seek financial advice to ensure that your portfolio is diversified as effectively as possible.’
He says the iShares Global Water ETF provides exposure to the top 50 stock market firms involved in water-related businesses.
Holdings include American Water Works, Veolia Environmental and United Utilities. A £10,000 investment made five years ago, with dividend reinvestment, would now be worth £20.381.
Meanwhile, the L&G Clean Water ETF aims to track the performance of a basket of stocks from companies involved in the international clean water industry.
A £10,000 investment made two years ago, when the fund was launched, would now be worth £15,259.
The AXA Framlington Global Clean Economy Fund also provides water connectivity and sustainability of water supplies. The fund has turned £10,000 into £17,735 in two years.
Mr. Bergman also suggests the new Fidelity Sustainable Water and Waste Fund which invests in water and waste management companies around the world.
b.wilkinson@dailymail.co.uk
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