Sprinkle Your Investment Portfolio with Water!
MetadataShow full item record
This paper investigates the profitability of water-related investments and their diversification benefits in a portfolio context. Motivated by the need to understand whether or not water indices and water funds are desirable vehicles for investment, we analyse the performance of a major water index independently, as well as within portfolios. Our results indicate that the water asset class outperforms traditional asset classes, and has the capacity to produce diversification effects in portfolios primarily comprised of listed equity and bond assets. In addition, our study suggests that the diversification benefits of the water asset class are likely to be a result of its superior performance over the stock benchmark, rather than its low correlation with traditional asset classes. Our study provides a valuable contribution to the small, yet growing body of literature on water investments.
Showing items related by title, author, creator and subject.
An extension of portfolio theory in selecting projects to construct a preferred portfolio of petroleum assetsMutavdzic, M.; Maybee, Bryan (2015)Advances in decision analysis have seen the oil and gas sector adapt its approach to project evaluation and selection through the inclusion of the principles of modern portfolio theory (MPT). Several studies have highlighted ...
Maller, R.; Durand, Robert; Jafarpour, H. (2010)Choosing a portfolio from among the enormous range of assets now available to an investor would be facilitated if we could locate the return–risk ratio of a particular allocation along a spectrum of possibilities. A ...
Chikolwa, Bwembya C (2008)According to the Reserve Bank of Australia (2006) the increased supply of Commercial Mortgage-Backed Securities (CMBS), with a range of subordination, has broadened the investor base in real estate debt markets and reduced ...