| From structuredproductsonline.com: Dawnay Day Quantum (DDQ) has launched its six-year Global Water Portfolio, offering 100% uncapped participation in the S&P Global Water index. The index invests in 47 companies involved in water related businesses and tracks two types of water companies, comprising water utilities and infrastructure, and water equipment and materials.
“Water is an invaluable commodity and everyone can see a global water shortage is staring us in the face,” says Mark Mathias, chief executive of DDQ. “The question is: how do you get exposure to it? There isn’t much in the way of traded water which you can get direct exposure to, so the best opportunity is through water companies.”
Part of the S&P Global Water index is based on the largest providers of water; companies that own the asset water and offer the provision of water to people, which is essentially what drives demand, explains Mathias. “There will be a lot more privatisation of water over the next decade, which will create opportunities for existing players – when other countries are looking to privatise water companies, the big established companies are well placed to take on the provision of water services,” says Mathias. “The other part of the index comprises the companies that are in the infrastructure end of water, which has been underinvested and needs to be developed,” he adds......Full Article Source |