Why Water

Water is essential to life, health, and environmental sustainability.

Investing in the water industry provides the opportunity to generate returns that exceed the market while simultaneously delivering measurable positive impact.

WAM’s core belief is that scarce clean water is this century’s defining resource. After decades of underspending, a capital investment super-cycle is underway to repair and expand water infrastructure and improve water supply reliability. WAM’s deep industry domain experience, fundamental analysis, active management, and valuation discipline drives our investment philosophy.

WAM’s Global Water Equity Fund was ranked #1 by Nasdaq’s eVestment for Long Term Performance vs. ESG Peers.

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Water and Impact

Investing in water combines free enterprise with serving the common good and delivering measurable positive impact. Delivering clean water and treating waste water is essential to sustaining communities and public health while restoring rivers, coastal and marine ecosystems. Energy consumption can be reduced through more efficient water systems as moving and treating water consumes ~ 3% of world's electricity. Providing reliable, regulated water and sanitation services in developing countries increases economic productivity, improves public health, promotes greater gender equality (liberating women and girls from the burden of hauling water) and improving eductaional outcomes. Water infrastructure investment in developed markets has an exponential impact on job creation and social stability.

 

Water Stewardship

It is WAM’s objective to engage deeply and responsibly as we plan for the future of local, national, and global water resources. By taking meaningful actions, our work benefits the ecosystems in which we live. WAM collaborates with water stakeholders on all levels to solve water quality and water supply problems. WAM's active participation in Colorado River water conservation programs has resulted in billions of gallons of water retained in Lake Mead during the last 4 years. WAM will continue to provide additional conserved water from these programs to further elevate water levels for years to come. WAM’s public investments provide the necessary financial resources for water companies to innovate, manufacture, and deliver their products and services to communities in need for long-term, clean, and reliable water.

Water provides investment diversification and inflation protection

Water investing has historically acted as an effective inflation hedge. Fair, transparent, and incremental pricing is driven by the need to upgrade and maintain infrastructure (storage, transmission, treatment) and ensure sustainable and reliable supply.

Low Pricing: Water is priced lower compared to electricity, gas, cable, and telecom. The comparably low price of water relative to its essential value leaves ample room to cover all costs of operations, capital investment, and reliable supply.

Low Correlation and Volatility: Water investments demonstrate lower correlation with a broad universe of commodities and equity indices, and have also tended to increase in value more consistently over time.

Diversification: Water is a critical input to future growth in all industries including food production, energy development, manufacturing, mining, housing, and data storage. This allows water investors to gain broad exposure to growth in a variety of real assets and economic activity.

Water Asset Management believes that the water industry is entering an unprecedented period of transformation. Water companies and assets offer investors the ability to realize capital appreciation, sustainable long term income growth and positive impact, all with relatively low levels of risk and volatility.