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How to Invest in Water with Bloom: A case study with Kilter Rural

Updated: Apr 26, 2023

Water is the source of life, but it can also be a great source of portfolio diversification. Have you ever wanted to invest in Water or Wetland protection but weren’t sure where to begin or how to invest in ESG products? Then read on to discover how.

Investing in Water - Bloom impact investing
The Southern Murray-Darling Basin - Source: Kilter Rural

Firstly, why invest in water?

Like gold and oil, water is a commodity that can be bought and sold, with the price fluctuating based on supply and demand.

We know that 71% of our planet is covered in water, however only 3% of our water is drinkable - i.e freshwater. The remaining 97% is salt water - which can’t be used for drinking or agriculture. This means that we have a finite supply of water, and as demand increases it will be difficult to increase supply. Making water a scarce commodity.

If water does become scarce in the next few years this could represent a good investment opportunity. However, more importantly, it represents an opportunity to invest in the solutions we need to secure our water future.

Why investing in water is important for our climate future

It is expected that our worldwide water supply will be threatened over the coming decades, rather than increasing. In just the last 100 years, global water demand has increased by 600%, and is expected to increase by another 20-30% by 2050.

This scarcity in water supply is due to several reasons. One of them is climate change, severe weather events, floodings, fires, rising sea levels and the melting of the icecaps have all contributed to a scarcity in fresh water supply worldwide. The overuse of water in farming and manufacturing is another reason for water scarcity. For example, it takes 15,400L of water to make 1kg of beef, even more shockingly it takes 18,900L of water to produce 1kg of coffee beans. So you can see that water is not only essential for ourselves, but for the industries that support our standards of living as well.

With water being needed across almost every facet of our life, it’s extremely important we try and solve our water challenges and start investing in companies and projects that are focused on increasing our water efficiency and conservation.

Kilter Rural - a case study in water investing

The Murray-Darling Basin Balanced Water Fund is a collaboration between the Kilter Rural investment team and The Nature Conservancy, and the first investment vehicle in Australia to provide investors with the opportunity to achieve multiple objectives: securing water for agriculture, aiming for a financial return and restoring threatened wetlands.

This makes the Bloom Impact Fund the first fund allowing Australians to invest in water and wetlands protection from only $100 for individuals. Please remember that all investments carry risk. You may lose some or all of your money invested.

Plus, the environmental environmental and social impacts are significant:

  • Restored over 350 hectares of diverse wetlands in south-west NSW. Helping create a stronghold for the endangered Southern Bell Frog 🐸, they also reintroduced the previously extinct Murray Hardyhead fish 🐟

The vulnerable southern bell frog
The vulnerable southern bell frog - Photo Sascha Healy, source: Kilter Rural

  • Helped restore and manage the Carrs, Cappitts and Bunberro wetlands, which is home to Aboriginal artefacts, scar trees and 17 culturally significant plant species

Carrs, Cappitts and Bunberoo (CCB) Wetland
Before and After - Carrs, Cappitts and Bunberoo (CCB) Wetland - Source: Kilter Rural

Carrs, Cappitts and Bunberoo (CCB) Wetland - Before and after water donation

  • Donated over 10GL of environmental water to 30 wetlands across Victoria and New South Wales (NSW) since 2015

  • Forecast to donate 5.4GL of water which aims to support 21 high-value wetlands encompassing approximately 1600 hectares in the southern Murray-Darling Basin next financial year

The fund returned 19.4% 12 months to April 30 2022 and 13% Annualised Since 2015. (source: Kilter rural, past performance is not indicative of future performance). You can gain exposure to the Kilter Water fund via investing with Bloom.

You can invest in The Bloom Climate Impact Fund today to get access to The Kilter Rural Balanced Water Fund.

Kilter Rural is just the tip of the iceberg

At Bloom, we have created a unique Climate Impact Investing Methodology. The Bloom fund invests in businesses like Kilter Rural to create a positive climate impact and accelerate the world’s transition to a cleaner future while striving to generate financial returns for its investors. Please remember that all investments carry risk. You may lose some or all of your money invested. Each business that Bloom considers must meet an impact solution, like water conservation, from Project Drawdown or ClimateWorks, and the asset itself needs to be a sound investment financially. The info in this article is just a glimpse into our research and portfolio, for more information download the Bloom app and start your climate impact investing journey with us.

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The information on this blog is prepared by Bloom Impact Investment Services Pty Ltd (ACN 651 965 098 AR 001294778), who is an authorised representative of Cache Investment Management Pty Ltd (ACN 624 306 430 AFSL 514 360) (Cache). All information is general information only and does not take into account your personal circumstances, financial situation or needs. The financial products described herein will be units in the Bloom Climate Impact Fund will be issued by Melbourne Securities Corporation Limited (ACN 160 326 545 AFSL 428 289), as disclosed in the relevant PDS. You should also read the TMD which describes who the financial products mentioned herein, may be appropriate for. All information is general information only and does not consider your personal circumstances, financial situation or needs. Before making a financial decision, you should read the PDS and consider whether the product is right for you and whether you should obtain advice from a professional financial adviser. All investments carry a risk. You may lose some or all of your money invested.

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