The rationale behind the Fund

In Australia, water is becoming an increasingly scarce and valuable commodity. Increased agribusiness activity and private equity interest are driving greater demand for water assets. At the same time, the effects of climate change are creating more extreme and regular weather events, including droughts. Meanwhile, rainfall across south-eastern Australia is declining.

Investment approach

The fund uses a deep learning algorithm to trade the Australian water market, specifically the short-term allocation market. We’re refining our strategies even further before launch.

We only take a long position, with 90% of the portfolio pursuing a long-term buy and hold approach to water entitlements, actively managing these to optimise yields.

The remaining 10% of the portfolio uses our data engine to obtain and analyse data that affects the price of water from thousands of data points. This includes changes to dam levels, NASA satellite data and BOM weather forecasts.

By then applying AI-enhanced logic models and machine learning, we predict where the price of water is headed and actively trade the water allocation market.