With the recent turmoil in the markets, optimism has been a commodity in short supply and good investment opportunities as scarce as hens teeth; though this may be changing if you believe Warren Buffets ‘buy now’ call. In the midst of this, two new water based investment funds were recently launched.
Aqua Resources could have done with some help on their website however, it really isn’t very inspiring, it doesn’t have very much meat to it and contains platitudes such as ‘The Company intends to implement its investment policy via its investment strategy. Using global research and sourcing, the Company intends to build a portfolio focused on investments that offer water-related returns.’ Yawn!
However one thing which differentiates Four Winds from other water funds is that they are focused on unquoted assets. This enables them to access a broader base of investments and go after small cap, pure plays, in the water sector. Most other water funds focus on public equity investments with significant non water business activities, e.g. Nestle and General Electric. Leonora Walters provides some good commentary on this at the Investegate.
Despite all the long term positive signs and reasons to invest in water, this didn’t however stop a number of water indexes from taking a hammering in the past few weeks, the ISE-B&S Water Index (^HHO) is down approximately 30% since the start of August and the Global Water Intelligence (GWI) Global Water Index was down 9.9% between 10th August and 19th September 2008. So it seems like in the old movie, when people hear the scary music they still go running for the beach.
Paul O’Callaghan is the founding CEO of the Clean Tech development consultancy O2 Environmental. He lectures on Environmental Protection technology at Kwantlen University College is a Director with Ionic Water Technologies and an industry expert reviewer for Sustainable Development Technology Canada.