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4 Water Mutual Funds to Buy Now


In addition to ETFs, investors can access the water industry sector through mutual funds.  Here is a list of some of the more noteworthy funds in this sector:

Calvert Global Water Fund (CFWAX)

  • Managers: Craig Bonthron and Jens Peers
  • Total assets: $42 million
  • Total annual Fund operating expenses: 5.78%
  • Load: 4.75%
  • Status: open
  • Minimum initial investment: $2,000

Calvert Global Water Fund holds 30% of its assets in water utilities, 40% in infrastructure companies, and 30% in water technologies. About 65% to 70% of the 100 to 105 water stocks in the Fund are identified worldwide are pure plays, which derive over 50% of their revenue from water-related activities. Individual positions tend to be small- and mid-cap stocks, while the larger-cap names usually include other components besides water.

Top Holdings (as of September 2010):

American Water Works (NYSE: AWK), Severn Trent, Pentair (NYSE: PNR), United Utilities Group (UUGRY), Kurita Water Industries (KTWIY), Danaher Corp. (NYSE: DHR), Agilent Technologies (NYSE: A), Aqua America (NYSE: WTR), Tetra Tech (NYSE: TTI).

Allianz RCM Global Water Fund (AWTAX)

  • Managers:  Vipin Ahuja and Andreas Fruschki
  • Total assets: $54 million
  • Maximum Sales Charge: 5.50%
  • Net Expense Ratio : 1.80
  • Minimum initial investment: $1,000

Investment Objective: Focuses primarily on water utilities in view of the relative shortage of other pure-play water stocks. Invests in companies engaged in businesses related to the quality, availability or demand for water — a sector marked by rising demand and dwindling supply. The fund expands its investment universe beyond its benchmark, seeking opportunities across all stages of water-related technologies.  Fund uses a bottom-up stock selection of 25 to 50 stocks for the portfolio.

Top Holdings (as of September 2010):

Gerberit AG, Nalco Holding (NYSE: NAL), Andritz AG, Danaher Corp. (NYSE: DHR), ITT Corp. (NYSE: ITT), United Utilities Group PLC, Kurita Water Industries, Severn Trent PLC, Arcadis NV, Aqua America (NYSE: WTR).

PFW Water Fund (PFWAX)

  • Managers: Ben Murillo Jr., Richard Capalbo, Rod Hagenbuch
  • Total assets: $17 million
  • Expenses: 1.50%
  • Load: 5.75 %
  • Status: open
  • Minimum initial investment: $2,500

Investment Objective:  Seeks to invest at least 80% of assets in water-related companies that derive at least 50% of their income or profits from, or devotes at least 50% of its resources to the production or delivery of water-related products or services that influence the quality or availability of water.  Companies may be involved in the production, collection, treatment and distribution of water to domestic and industrial users; purification, desalination, or disinfection of water; the collection, treatment or disposal of domestic and industrial liquid wastes; or provide equipment, consulting and engineering services in connection with water.

Top Holdings: (as of August 2010):

J.G. Boswell (OTC: BWEL), Nalco Holding (NYSE: NLC) , Watts Water Technologies (NYSE: WTS) , Calgon Carbon (NYSE: CCC), Energy Recovery (NASDAQ: ERII), Aqua America (NYSE: WTR), Consolidated Water (NASDAQ: CWCO), Ameron International (NYSE: AMN), Met Pro Corp. (NYSE: MPR), Entegris (NASDAQ: ENTG),  Gorman-Rupp (AMEX: GRC), Muller Water Products.

Kinetics Water Infrastructure Advantaged Fund (KWIAX)

  • Managers:  James Davalos, Peter Boyle, David Kingsley, Murray Stahl
  • Total assets: $ 26 million
  • Expenses: 1.89
  • Load: 5.75 %
  • Status: open
  • Minimum initial investment: $2,500

Top Holdings (as of June 2010):

Ameron International (NYSE: AMN), URS Corp. (NYSE: URS), Geberit AG, First American Prime Obligation, ESCO Technologies (NYSE: ESE).

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