Kilter Rural with The Nature Conservancy have released an update of the Murray Darling Basin Balanced Water Fund Information Memorandum. Established in 2015 The Murray-Darling Basin Balanced Water Fund was established to demonstrate a new model for achieving enhanced water security for irrigators and benefits to rural communities while also providing water for the restoration of important local wetlands. Balancing the water needs of a diversity of water users will be increasingly important given current trends and projections for climate change.  Investors considering a commitment to the fund will help escalate the scale of fund impact for the environment and water access outcomes for irrigators and irrigation communities.

The issue of climate change is having a significant impact on natural capital across Australia’s terrestrial, riverine and marine environments.  Investment and management of natural capital assets must consider current trends and the future outlook for impacts and responses to climate change. Globally 2020 was equal hottest on record and nationally the fourth hottest year on record.   

More specifically for the Fund, since the 1970s records indicate that average winter rainfall in the catchment areas of the Murray Darling Basin have dropped by around 26 per cent. A 1% drop in rainfall has been estimated to reduce streamflow by between 2% to 3%.  This in turn impacts on the volumes of water captured in storage. Over the past 20 years, the average volume of water held in sMDB storages has declined by 35% compared to the long term average.  These long-term reductions impact irrigation and environmental requirements with both community and cultural flow-on effects.    

The Fund’s dual purpose of benefiting the environment and farming families is delivered through a counter-cyclical strategy that ensures that the majority of water held in the portfolio will be utilised by the agricultural community in years of drought when the farmers most need it.  On the other hand, the environmental watering will mostly occur in years when water is in excess, delivering water to wetlands that might otherwise not receive it given the significant contractions in water availability. This project guarantees to make water available to Australian farming families and the environment.

The Fund is part of a water portfolio managed by Kilter Rural, one of the largest water asset managers in Australia and is backed by the environmental expertise provided by The Nature Conservancy Australia. Euan Friday the CIO of Kilter Rural noted “With more than $500 million in real assets under management, Kilter Rural has been playing a leadership role in water asset management for more than a decade. Balancing social, environmental and financial outcomes fundamentally aligns with Kilter Rural’s stewardship philosophy for management of water, farmland and ecosystem assets.  The Fund has delivered returns of over 14%* since inception and in combination with the government environmental water holders have delivered over 3 billion litres of water to select wetlands in NSW and Victoria”

This Fund provides Eligible Investors with the opportunity to achieve the objectives of securing water for agriculture, realising a financial return and restoring threatened wetlands.

The new information memorandum dated 27 January 2021 is now available.

We invite eligible investors to consider the Murray-Darling Basin Balanced Water Fund.

*past performance is no indication of future performance. This fund is open to eligible investors only.

Download the latest Information Memorandum