Fund to tap growing demand for water

BY ROMY UDANGA

Last updated 05:00 22/04/2010

RAISING A GLASS: Pathfinder executive director John Berry, left, and chief operating officer Paul Brownsey toast their new endeavour, which they say is the first of its kind in New Zealand.

MAKING A SPLASH: Pathfinder chief operating officer Paul Brownsey, left, and executive director John Berry say their endeavour is the first of its kind in New Zealand.

Relevant offers

Money

Hundreds of Hanover investors may be in line for tax write-offs Making your education investment pay Quake city assets set to be popular Shoppers spend more on credit, debit cards Feltex class action swells by 800 Banks take $3b profit overseas National grid upgrades blamed for power price rises SFO looking into gold bullion fraud Hundreds lose money after trader dies Final wash-up leaves creditors nursing losses

A fund that capitalises on the world's growing need for water will be launched today.

Pathfinder Asset Management registered its prospectus for the open-ended, no-cap Global Water Fund yesterday and plans to issue the first units by June 30.

The fund aims to select and track a range of global water indexes and "provide investors with an efficient and diversified access" to the global water industry.

Pathfinder executive director John Berry said water was globally regarded as a strategic asset because "basically we have to feed the growing population of the world".

"The demand for water is escalating due to growth in the global population, farming intensity, agricultural practices, further industrialisation and infrastructure needs. In the developing world, growing population, coupled with fast urbanisation, is putting pressure on water resources.

"In the developed world, one of the main issues they face is the replacement of their ageing water infrastructure with more efficient systems. In the US, for example, 26.5 billion litres of clean drinking water leaks out of pipes daily."

Despite the perception that water is abundant, only 1 per cent of the Earth's water is freshwater and this has to be distributed to a global population of 6.9 billion people, which is projected to grow another 20 per cent by 2030.

More than 70 per cent of global freshwater is used in agriculture.

Ad Feedback

- © Fairfax NZ News