I believe that Water represents an important area for investment, and I have discussed it previously.

I once mentioned how precious it is. It was my Mom's final message. I followed up two months later with thoughts of "how sweet the water runs".

I have written other times on the topic of water, but can't find the archive links.

Before pouring over the attached report, UBS makes this important statement that ought to be read:

"In addition to the water utilities, the 'water business' comprises a diverse range of companies across industries, such as specialty chemicals, advanced industrial equipment, factory equipment, building materials, industrial diversified and advanced industrial equipment. As such, the risks involved are those pertaining to the particular industry and company.

Risks associated with investing in infrastructure and utilities businesses include:

(1) given the longer-duration nature of the assets, the valuation of these assets is sensitive to changes in long bond rates;
(2) acquisition risk;
(3) unfavourable regulatory rulings (including structural changes to pricing and the competitive playing field);
(4) one-off shocks impacting the use of infrastructure assets;
(5) exposure to price volatility; and
(6) growth rates not meeting expectations."

Enjoy.