Market Turmoil ….. simply when you intended is was dependable to invest in Water!

On September 30, 2008, the investment group Calvert plunged the Calvert Global Water Fund (CFWAX). This fund is its up-to-the-minutest Sustainable and Creditworthy Investment (SRI) common fund, part of a newfangled series of investment portfolios recognized as Calvert Solution™ Strategies. Calvert have partnered with KBC Asset Management External, Ltd., of Dublin, Ireland, to substitute-propose them on the management of this fund. KBC on the face of it ‘features an eight-year track record of firm performance in the world water sector’. Be that as it may, their timing for the launch believably wasn’t great paid the stampede out of equities and they have swung 18% from $15 at the start of October to close to $12.20 today.

KBC suppose that they stay top of the technical issues involved in the water cycle through its away environmental consultative committee of scientists. Jens Peers, leave portfolio manager of the Calvert Global Water Fund avers ‘we trust that no other water asset management group has laid out up a corresponding committee of indifferent experts.”

Another late development was that Four Winds Capital Management launched the first London leant water fund on July 24th. The fund, which is referred to as the Aqua Resources Fund was launched on the London Stock Exchange and will invest in water interrelated assets in areas such as infrastructure, technology, recycling, treatment, distribution and water to energy, chiefly by removing unmediated stakes in unquoted companies and projects. The investments must be at least 60% involved in water activities.

Aqua Resources could have done with some help on their website nevertheless, it truly isn’t very inspiring, it doesn’t have very much meat to it and bears platitudes such as ‘The Company thinks to follow out its investment policy via its investment strategy. Expending world-wide research and sourcing, the Company means to establish a portfolio focused on investments that offer up water-interrelated returns.’ Yawn!

However one thing which differentiates Four Winds from other water funds is that they are concentrated on unquoted assets. This enables them to access a spacious base of investments and go after little cap, virgin plays, in the water sector. Most other water funds focus on public equity investments with important non water business activities, e.g. Nestle and Ecumenical Electrical. Leonora Walters plies some in effect commentary on this at the Investegate.

Despite all the foresighted term plus signs and reasons to invest in water, this didn’t however halt a number of water indexes from taking aim a hammering in the past few weeks, the ISE-B&S Water Index (^HHO) is down close to 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 appears like in the honest-to-goodness movie, when people try the scarey music they however plump runing for the beach. 

Paul O’Callaghan is the basing 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.

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