Water fund reaps 32pc gain, El Nino to bring more profit

The water trading fund managed by listed private equity company Blue Sky Alternative Investments has achieved a return of more than 32 per cent in fiscal 2015 as farmers flock to cheaper land and invest in high-return crops in the areas where the fund has purchased water.

In a private report sent to unitholders the fund's managers said they anticipated the southern Murray Darling Basin would see further appreciation alongside the impact of El Nino and the significant investment that has occurred in the area's irrigated farming including cotton, almonds, walnuts, dairy and citrus.