Investment deep dive: Murray-Darling Basin Balanced Water Fund
Investing for a better world
In a world where the rhythms of nature are being disrupted, where every drop of precious water counts and where ecosystems hang in a delicate balance, the way we invest our money matters.
Founded in 2004, Kilter Pty Ltd (Kilter Rural) is one of Australia’s leading water managers. With more than $355M of water, farmland and ecosystem assets, they were founded on the desire to build long-term value for investors through resilient farmland and physical water investments.
As part of its mission to deliver profit for impact and support sustainable food production, protect biodiversity and mitigate climate change, Kilter Rural has a number of funds open to investors, all of which are committed to supporting Australian farmland and surrounding water assets. One such fund is the Murray-Darling Basin Balanced Water Fund or ‘BWF’, which Verve Money is proudly invested in.
Contributing to permanent water rights in the southern Murray-Darling Basin (sMDB), through Kilter Rural’s BWF, is just one of the ways your money is ethically invested through Verve Money. Shall we learn a little more about them?
What we love about Kilter Rural and the BWF
The BWF is renowned as the first investment vehicle in Australia to provide investors like you with the opportunity to secure water for agriculture, realise a financial return and restore threatened wetlands — all at the same time.
Founded in 2015, the Fund is managed by Kilter Rural in collaboration with The Nature Conservancy. Trading water entitlements in the sMDB area, this project provides local farms with access to life-giving water, while reserving a portion for conservation activities that sustain local ecosystems.
Widely regarded as one of the world’s most sophisticated water markets, the area covered by the BWF is roughly the size of Germany and encompasses major river systems from the Murrumbidgee to the north, as well as the full length of both the Murray to the east and the Goulburn to the south.
Over the past eight years, Kilter Rural has donated over 10GL of environmental water to 30 wetlands across Victoria and New South Wales (NSW).
By aligning their donations with the seasons, they are able to donate up to 90% of the Fund’s water to support farmers in ‘dry seasons’, and up to 45% of the Fund’s water to support wetlands in ‘wet seasons’.
This approach, which turns traditional water allocation on its head, shows how a precious resource like water can be made available to those who need it most, just at different times, without impacting returns and results.
Why we think you’ll love them too
Since 2004, Kilter Rural has restored over 350 hectares of diverse wetlands in southwest NSW, with a total commitment to donate over 6,000 Olympic swimming pools’ worth of water since inception.
Helping to create a stronghold for the endangered Southern Bell Frog and Eastern Regent Parrot, they also reintroduced the previously locally extinct Murray Hardyhead fish, and monitoring has shown an increase in bird diversity of up to 212% and an increase in bird abundance of 282%.
Traditional Owners have been heavily involved in the strategic process behind when, where, and how the water is allocated, and the project has helped restore and manage the Carrs, Cappitts and Bunberro wetlands, which are home to Aboriginal artefacts, scar trees and 17 culturally-significant plant species used for food, medicine, and sustenance.
Innovation and inclusion
For 10+ years, Kilter Rural and the BFW have been at the forefront in innovation of new water solutions, and entirely transformed the way irrigators think about water needs, use and access.
Delivering responsible returns to investors, Kilter Rural has also formalised a partnership with Accounting for Nature to measure the condition of the environments that they manage, gain independent assurance, and enhance their ESG disclosures.
Want to find out more about what you’re invested in through Verve Money?
At Verve Money, we want to help you build towards the kind of financial freedom that doesn’t rob the earth, or our futures. Beyond ethical investing in big corporates, we hand-pick investments that drive climate solutions and social wellbeing, just like the BWF.
To see exactly how and where your money is invested, be sure to take a trip around our Investment Universe.
Ready to start building your wealth with a diversified and sustainable investment portfolio? Download the Verve Money App and get started today.
Investments may be held indirectly via an Exchange Traded Fund (ETF) or Managed Fund (MF).
This article is published by Verve Money Pty Ltd (ABN 71 653 669 366, AFS Representative No. 001294184), a Corporate Authorised Representative of True Oak Investments Ltd (ABN 81 002 558 956; AFSL 238184), as the Manager of Verve Money. A friendly reminder that all the financial information contained in this article is general in nature and does not take into account your personal financial objectives, situation or needs. It’s important to do your own research and consider getting in touch with a professional adviser to access specific information tailored to your unique situation.
You should read the Product Disclosure Statement, Investment Guide, Target Market Determination and Financial Services Guide before making a decision to acquire, hold, or continue to hold, an interest in the Verve Money Fund. Visit www.vervemoney.com.au/documents to view these documents.
Interests in the Verve Money Fund (ARSN 662 622 899) are issued by Melbourne Securities Corporation Limited (ACN 160 326 545, AFSL 428289). When considering financial returns, return of capital is not guaranteed and past performance is not indicative of future performance.