Global Fund Exchange Ltd, a member of the New York based Global Fund Exchange Group, is to launch the AquaTerra Fund, a new investment vehicle which invests in global opportunities in agriculture, water and natural resources.
The AquaTerra Fund is a carve-out of the existing agriculture, water and natural resources strategies of the asset manager’s flagship portfolio, the Earth Wind & Fire Fund. The fund will be open to new investors on March 22, 2011, a date that coincides with World Water Day 2011 – the day of global action devoted to water, one of the cornerstones of the AquaTerra Fund’s investment strategy.
Global Fund Exchange CEO Lauralouise Duffy says: “The sustainability and efficiency needs for our water and food resources are the most critical ‘must outcome’ for Planet Earth. The AquaTerra Fund is a focused investment on these vital assets.”
Meeting increased demand for food, water and resources is the challenge of the century, and the statistics are staggering according to Duffy. The global population is growing at a rate of 80+ million people per year and is predicted to top nine billion by 2050. As a result, the Food and Agriculture Organisation of the United Nations (FAO) predicts that global agricultural output will need to increase by 70% to meet new demand. Demand for freshwater is rising steeply as well. By 2025 it is estimated that global demand will exceed current available freshwater reserves by 25%. Unpredictable weather patterns causing severe droughts and major flooding have exasperated the food supply stability. In addition, rapid economic growth in developing nations continues to escalate resource supply and demand disparities, resulting in an exciting opportunity set for forward-looking investors who have identified these areas of growth.
“The best investments are when necessity creates opportunity,” says Chairman Anric Blatt. "We are launching the AquaTerra Fund to offer our clients a focused, disciplined investment opportunity that capitalises on these major global trends.”
