Deriving uncorrelated returns to traditional asset classes, as at January 2020 the Argyle Water Fund has returned 19.1% p.a. since inception (2012) by investing in water rights across Australia.
Returning to the podcast for a second time, Kim joins David to discuss the fund's change in banner from Bluesky to Argyle along with other topics such as the recent bushfire crisis that has been ongoing across Australia, as well as the impact of different climate conditions on Australia's water supply.
A vast majority of the Fund’s capital is exposed to the river systems of the southern Murray-Darling Basin including the Murray, Goulburn, Murrumbidgee and Lachlan.
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I presume this is BAF that is listed on the ASX. In the past the problem with this company is a lack of cash flow. Two years ago the main source of cash was share purchase plans. The last was for $1.10. They have used those funds to buy back shares at bout 85 cents, shareholders must be pleased. Last financial years their main source of cash was sale of assets. The water rights never seem to lead to a inflow of cash, The half yearly report I am looking forward to, to see if those water rights are finally making money