Murray-Darling Basin
Balanced Water Fund

The Murray-Darling Basin Balanced Water Fund is the first investment vehicle in Australia to provide investors with the opportunity to achieve multiple objectives of securing water for agriculture, realising a financial return and restoring threatened wetlands.

Founded in 2015 the Fund’s objectives are delivered by recognised leaders in their fields, Kilter Rural, The Nature Conservancy and the Murray-Darling Wetlands Working Group.

The Impact

Opportunity

Sophisticated Market

• With private entitlements on issue valued at approximately A$30+ billion, the sMDB is considered one of the world’s largest and most sophisticated water markets.
• Asset-backed investment with low correlation to equity and fixed income markets.
• Exposure to high-value agriculture with limited commodity risk.

Financial Returns

• Attractive long-term value appreciation (7%-9% p.a. target capital growth).
• Plus yield from the lease of water entitlements and the sale of water allocations (2%-3% p.a. target yield after all Fund expenses).
• Counter-cyclical trading strategy targeting financial and environmental returns in addition to supporting irrigation communities.

Environmental and Social Returns

• Leasing of water entitlements for irrigation supports rural communities.
• Restoration of threatened wetlands and wetlands of cultural significance to Aboriginal groups.
• Donated over 20GL of environmental water to 30 wetlands across Victoria and New South Wales (NSW) since 2015.

Leading Counterparties

• Kilter Rural – One of Australia’s largest and most experienced water managers, playing a leadership role in water security management since 2009.
• Murray Darling Wetlands Working Group restores wetlands of the Murray-Darling Basin and improves the management of wetlands throughout the catchment by linking community involvement with best scientific understanding. Over more than 20 years, the Working Group has partnered with more than 150 landholders to deliver in excess of 100,000 megalitres (ML) of water to more than 200 of the Basin’s most important wetlandsIn this project the MDWWG is responsible for the effective management and delivery of environmental water flows.
• The Nature Conservancy Australia – is the world’s largest conservation organisation working around the globe to conserve the lands and waters on which all life depends. The Nature Conservancy is a global leader in conservation finance. The Nature Conservancy has established more than 40 water funds globally and developed innovative initiatives such as Debt-for-Nature swaps, Indigenous livestock trusts, stormwater bonds and community fisheries.