Investing in water: how to make a splash with cash?

How do you make a splash with cash? Global water industry will be worth a trillion dollars a year within ten years

  • Climate change would cause droughts in some areas and floods in others
  • WWF predicts that two-thirds of the world’s population could face water shortages by 2025
  • New funds launched focused on water treatment and purification technology










The world will always need water, so it’s a wise investment, right?

H20 is a precious commodity and is becoming increasingly scarce, leading some to call it ‘blue gold’.

The global water industry is also expected to be worth a trillion dollars a year within ten years.

Precious resource: The global water industry is expected to be worth a trillion dollars a year within a decade

According to the World Wildlife Fund (WWF), climate change is changing weather patterns, causing water shortages and droughts in some areas and devastating floods in others.

Brazil has been hit by the worst drought on record this year, while Madagascar’s shortage is so severe it is leading to famine.

At the same time, floods in Germany and Belgium caused more than 180 deaths this summer.

The WWF predicts that by 2025, two-thirds of the world’s population could face water shortages unless a solution is found.

Rob Burgeman, asset manager at asset advisor Brewin Dolphin, says there are funds available to retail investors aimed at improving the future treatment and purification of water services.

H20 is a precious commodity and is becoming increasingly scarce, leading some to

H20 is a precious commodity and is becoming increasingly scarce, leading some to call it ‘blue gold’

He says: “There will be few countries that don’t have to invest billions over the next 20 years to improve their water and waste services while addressing water shortages.

“As an investor, there are ways to access this through a selection of exchange traded funds (ETF) and funds that provide exposure to this important sector.

“As always, it’s always best to seek financial advice to ensure your portfolio is diversified as effectively as possible.”

He says the iShares Global Water ETF provides exposure to the 50 largest stock exchange companies involved in water-related matters.

Holdings include American Water Works, Veolia Environmental and United Utilities. An investment of £10,000 made five years ago, with dividends reinvested, would now be worth £20,381.

Meanwhile, the L&G Clean Water ETF aims to track the performance of a range of stocks of companies involved in the international clean water industry.

An investment of £10,000 made two years ago when the fund was launched would now be worth £15,259.

The Axa Framlington Global Clean Economy Fund also provides exposure to water and the sustainability of the water supply. The fund has converted £10,000 into £17,735 in two years.

Mr. Burgeman also introduces the new Fidelity Sustainable Water and Waste Fund, which invests in global water and waste management companies.

b.wilkinson@dailymail.co.uk

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