Investing in Water in Australia, page-5

The only pure play water vehicles open to investors of which I am aware are the Blue Sky Water Fund (unlisted) and Duxton Water Limited. Blue Sky however is for sophisticated investors only. I like the thematic of water in a diversified portfolio however how you access it will be a big determinate of your returns. It is expected over the long term to have about the same level of volatility as equities (standard deviation) but very low correlation to any other asset class. A great theme but difficult to access property. Being listed, D2O is just a proxy which will correlate more with equities. Personally I would take Blue Sky for the more pure exposure but it's hard to get into and also you run the risk of illiquidity in your investment funds which may not suit everyone.