International investments in, on or near water make sense. Now it is becoming easier to have international investments in water due to a large Swiss bank. A Globe & Mail article entitled “Pouring money into water” by Tavia Grant said that March 22, 2007 was World Water Day and that this year’s theme was scarcity.
The article pointed out that more than a billion people don’t have access to safe drinking water.
International Investments Quote:
“It represents a looming threat to the world’s population, but also an opportunity for businesses to help meet the need for clean water. About $1-trillion (U.S.) in capital expenditure is needed over the next five years just to meet basic requirements for the delivery of water worldwide. By 2025, the United Nations estimates more than 2.8 billion people worldwide will be living in water-stressed areas — posing a challenge for individuals, agriculture, industry, energy and the environment.”
That article pointed out that over the past 16 years, water and oil prices have appreciated by the same amount. International investments in water have also fared well.
The article then told about a Toronto company called Criterion Investments that has launched Canada’s first actively-managed fund focused on water-related businesses. The investing is managed by Swiss company, Pictet Asset Management. The fund invests in businesses that help deliver safe water worldwide.
This fund will make it easier for our Canadian investors to make international investments in water.
The manager, Pictet Asset, already manages its own international investments global water fund that was started in 2000 and is now the world’s largest water-focused fund with over $4-billion (U.S.) in assets. Europeans can invest in this Luxembourg based fund. The graph below from Morningstar shows that the European version has performed well. The red chart is the fund’s performance versus the bell weather in black.
International Investments in Water Chart
Pictet and Cie is a Geneva based Swiss private bank that has been in business since 1805. Their international management company has over $115 billion in international investment assets under administration and is one of the largest independent international investment asset management firms in Europe.
They also managed the Pictet Global Water Fund, for US investors and offered investments as low as $2,500 but this fund was liquidated in 2003 for reasons I cannot yet understand. This may not help our American readers as I suspect they’ll have trouble buying either the Canadian or Luxembourg fund. I’ll look for ways around this and appreciate any insights readers might have.
You can read the balance of this message about Ecuador real estate.
At our upcoming IBEZ in N.C., we will update our International investments portfolio, look at water investments as well as our latest multi currency portfolios and much more. Join us May 25 – 27, 2007 at the International Investments and International Business Course in North Carolina. Thomas Fischer joins me to update international investments.