ARGYLE’S WATER FUND
Invests in the ownership and on-going management of a diverse portfolio of water entitlements (perpetual water rights) across several river systems and aquifers.
Argyle has long understood that fresh water is the lifeblood and most limiting factor governing the productivity of Australia’s agricultural sector.
We’ve responsibly managed investments in water markets since 2008 in line with the key principles of Australia’s National Water Initiative. Specifically, that capped volumes of scarce fresh water be most efficiently allocated amongst competing users by virtue of transparent and competitive water markets.
Argyle invests by purchasing and leasing back water entitlements from irrigation farmers allowing them to continue to irrigate and free up balance sheet equity to re-invest in their farm enterprise. This re-investment may include changing their enterprise mix (annual and permanent crops) and implementing precision irrigation methods to enhance water-use efficiency; to achieve ‘more crop per drop.’
Our irrigator clients include citrus, almond, grape, cotton, rice and dairy producers.
Argyle facilitates increased agricultural productivity by providing:
investments to assist irrigation farmers to restructure their balance sheets and unlock their own equity capital through water entitlement sale and leasebacks; and,
water supply and price risk management tools (via forward, spot and deferred delivery sales of annual water allocations).
Returns to the Argyle Water Fund are generated from our active management of annual water allocation sales and water entitlement leases. We anticipate water entitlement asset values will appreciate over time reflecting the finite volume of entitlements on issue in various water catchments, and the increasing competition for water as a critical input to the expansion of high value agricultural production.