Increasing populations and evolving consumption patterns arising from higher standards of living are putting freshwater resources under considerable strain. The growing gap between supply and demand, exacerbated by climate disruptions and extreme weather events, is set to require substantial capital investments in water treatment technologies and distribution infrastructure to reduce these imbalances. This opens the door to a number of investment opportunities into companies providing new ways to supply, distribute, conserve and treat water.
Investing in the water sector can be complex and requires a deep knowledge of current legislation and technological developments. To date, the water sector has provided investors with strong risk-adjusted returns, and we believe that it will continue to develop into a dynamic sector within global equities, with significant long-term investment potential. This paper outlines the opportunities available to long term investors in this exciting market.