Feed on
Posts

Here are some thoughts on investing in water.

First thank all of you who sent me your scholarship vote. The results today were overwhelming clear with 84% of the vote going to #1 and #4.  #1 received 51% of the vote.  #4 received 33% of the vote.  However many, many voters said they really wanted to vote for both #1 and #4.  Assuming there is no stunning change in the vote by tomorrow morning, we’ll be giving both #1 and #4 a scholarship.

Investing in water remains a no brainer investment, if you know what you are doing. There is growing demand and very limited supply. Since I do not know what I am doing when it comes to choosing any one specific water company, I invest in water in several ways.

First, I look for real estate with water.

Our farm in North Carolina has dozens of springs and over half mile of bold creek

little horse creek

Little Horse Creek. (click on image to enlarge)

Our home in Florida sits on an 85 acre lake and Lake County has over 1000 named lakes.

dock lake moon scape

Our boathouse on East Lake.

Our hacienda in in Ecuador has two strong waterfalls and is bounded by a large Andean mountain stream.

taita yatchak

Taita Yatchak at the lower Rosaspamba waterfall.

When it comes to water investing in equities I mostly look to Water Index ETfs.

In 2009 a message at this site “Warmer Than Water” this site introduced the Powershares Water Reseources ETF that invests in a diversified portfolio off water related shares.

pho

PHO chart at www.finance.yahoo.com

This fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ OMX U.S. Water Index. The fund generally will invest at least 90% of its total assets in common stocks and American depositary receipts (“ADRs”) of companies in the water industry that comprise the underlying index. The underlying index seeks to track the performance of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries.

This ETF has a negative return of -1.10% this year to date with a three year average return of 15.30%, a five year average return of 10.79% and a three year beta of 1.01.

Beta shows a stock’s volatility in relation to the market. The market beta is 1.0. Shares that fluctuate more than the market over time have a beta above 1.0. Shares that fluctuate less than the market, have a beta less than 1.0.

PIO is similar except more global in view as it tracks the NASDAQ OMX Global Water Index instead of the NASDAQ OMX U.S. Water Index.

water etf

PIO has YTD a return of 2.27% this year, a 3 year average return 14.53% and a 5 year average return of 7.35%. The three year Beta of 1.15.

Whever I go, I look at the availability of water. I no longer accept cheap water as an inalienable right.

Ecuador-water-truck

Manabi Ecuador Water Truck

Numerous messages at this site review water potential and concerns in Ecuador. I have asked around in many parts of Ecuador for information about availability of water. Mike Grabowski, the developer of the Ladera Pacific Coastal Real Estate Project, recently sent me this report on Ecuador water that was researched and written by his partner and wife, Irina Klimento.

The report says: Irina has two master’s degrees in civil engineering with specialty in water supply and sanitation and environmental engineering with 30 years of professional experience in the water sector gained from projects in different sub-sectors (both Water Resource Management (WRM) and Water Supply and Sanitation (WSS)) and on different levels such as policy, program and project levels. The experience gained in wide range of activities from practicing civil and environmental engineering to the establishing and development of the private sector enterprises in the business fields of trade, consulting engineering, environmental management and managing the financial performance and staffing aspect of these enterprises. The engineering activities focused primarily on the infrastructure engineering and technology such as municipal/industrial/commercial infrastructure development, water supply and wastewater treatment (sanitation), environmental engineering such as environmental assessments, development of environmental regulations, land development, environmental audit and monitoring.

Among Irina’s clients were municipal, provincial and federal governments, private sector and donor agencies (bilateral and multilateral donors) and partner country sector institutions such as Canadian International Development Agency, JICA, ADB, World bank, UN agencies and EBDR. The scope of activities covered a wide range of assignment varying in the degrees of complexities, sizes and sensitivities. These covered large projects such as the $300M expansion of MacDonald Cartier International Airport in Ottawa, monitoring the dismantling of decommissioned nuclear submarines in Russia, water supply/sanitation internationally, contaminated soil remediation at North, environmental assessments, development of the environmental regulation and Unexploded Explosive Ordinance (UXO) clearances. Her international development experience were gained with water and sanitation mission to Afghanistan for CIDA, development of environmental assessment programs and transportation of logistics goods for 2014 Winter Olympic games in Russian Federation, evaluation and monitoring, design and implementation of new water supply, sanitary and infrastructure projects, development of the strategic environmental policy, environmental regulation on pollution prevention and strategic environmental assessment for nuclear industry in Northwest Russian territories and rural/and urban infrastructure evaluation/development for Russian/ Armenian municipalities for EBDR.

Read The five page PDF report Water Situation in Manabi, Ecuador by Irina Klimento, P.Eng, M.Eng, CCEP

PAID ADVERTISEMENT:

Ladera Pacifica is a gated community north of Bahia with a breathtaking panoramic view of the ocean, within walking distance from the beach.

Renderings and actual photos of construction progress

Ecuador ocean view

Click on image to enlarge.

It is situated in coastal Manabi, Ecuador, just a short distance from Bahia de Caraquez, overlooking the fishing and surf town of Canoa.

The project is safely elevated at an average elevation of 60 feet above sea level, in an environmentally protected reserve, surrounded by a rare, tropical, pristine forest. Ladera Pacifica project consists of 40 luxury homes, at 1,200 square feet designed to rigorous standards, with quality and sustainability never before seen in Ecuador.

ecuador ocean view

Ladera Pacifc has the best ocean views.

Ocean view homes provide the best of both worlds, access to the sea, but lower operation and maintenance costs away from the salty corrosive ocean mists.

Ladera Pacific’s position above the beach removes the risks of the rare natural disasters and floods due to high tides, change in weather patterns and the El Nino effect. Security on a hillside development is also logistically easier, so no huge obtrusive walls are necessary.

ecuador ocean view

Conceptual design for kitchen.

Construction of 1st 2 in phase 1 of 10 units is well underway. The model unit is spacious with an open concept and the top unit is available and the structural portion nearly complete.

ecuador ocean view

* These large spacious open concept units are 1,200 square feet.

* Large master bedroom with walk in closet and large private bathroom, with wall to wall windows viewing ocean.

ecuador ocean view

Concept design bedroom.

* The second bedroom is situated on the side of the unit, with second full common bathroom.

* Large computer room.

* The main entrance opens up to open dining room, living room, patio, kitchen with large island and breakfast nook, to enjoy the ocean view and breeze.

* Full width window and patio door facing ocean, and 2 large picture windows on side wall which is unique to the 4 end units.

* The lower unit will be the model home and the upper one is available now at $155,000, pre construction pricing of $125,000 for interior units.

ecuador beach view condos

Rendering of ocean view.

Rental management also available.

Contact info: Email: mikeg@yumaeng.com

Website: www.yumaeng.com/laderapacifica

Join us on facebook: Friends of Ladera Pacifica Ecuador phone# 593 95 907 5658

For those who desire an individual house, Ladera Pacific also has seven large lots for sale all with a view of the ocean. House construction management available.

ecuador beach view

We DO NOT investigate properties when they are advertised so be sure to complete your due diligence. Always use an independent Ecuador attorney who represents you (not the seller) when you buy real estate in Ecuador. We also recommend that you rent, become familiar with Ecuador before you buy.

See the schedule for the Ecuador Get Together in Quito and real estate tours to Cuenca and the coast.