Kilter Rural has released the results from its end of financial year report, which shows the water fund has returned 22 per cent.
The Murray-Darling Basin Balanced Water Fund, which invests in the basin water markets and leases water to farmers, has returned a 17.47 per cent result last year.
The fund also makes donations of environmental water for wetlands.
Kilter Rural chief executive officer Cullen Gunn said Kilter was experiencing unprecedented investor interest in the deployment of capital towards natural capital assets such as water, farmland and ecosystem services.
“Returns from water are driven by factors not typically influencing traditional asset classes, like weather patterns, water storage levels and irrigated crop prices,” Mr Gunn said.
“Additionally, with progressive, innovative management natural capital investments can deliver tangible environmental benefits and climate mitigation outcomes.”
The Kilter Water Fund, launched in 2014, has delivered over 14 per cent returns to investors since inception.
Mr Gunn said the result highlighted the continuing strength of water as an investment class, driven by demand from high-value permanent horticulture plantings.
“The 22.28 per cent financial year result showcases the continued strong performance of the underlying investment case and portfolio construction of the fund.”
Kilter Rural has more than $300 million in funds under management and, in 2019, was awarded Australian Impact Asset Manager of the Year.
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