Aqua Resources Fund Limited, the closed–ended investment company managed by FourWinds Capital Management and established to invest in global water opportunities, has issued its audited results for the year ended 31 December 2009.

The company said that despite launching the Company in the midst of a worldwide economic recession, 2009 was a year during which Aqua confirmed that it is well positioned to take advantage of long-term investment opportunities in the water sector.

Kimberly Tara, Chief Executive Officer of FWCM, commented:

"Aqua was extremely active in investing the portfolio throughout the course of 2009, concluding the year with just over half of its net assets invested in a well balanced and diversified portfolio in terms of sector and geography. Looking ahead, we have a robust pipeline of potential investments for 2010 and remain confident that Aqua is well positioned to take advantage of the unique long-term investment opportunities in the water sector".

During the year, Aqua made four investments with a dedicated focus on operators and technologies in high growth markets, and with the aim of delivering a well-balanced portfolio both in terms of sector and geography. Two investments were made in technology companies which provide cost-saving solutions to large water utilities.

Aqua said that in the context of a global recession, they were attractive investments which allowed for water utilities to continue improving their water plants while spending less money than before.

Aqua’s first investment was in Bluewater Bio International, which provides a biological solution that efficiently removes, during the process of treating waste water, a large amount of inorganic nutrients as well as biological matter, thereby helping wastewater plants to produce re-usable water.

The second investment was in US-based In-Pipe Technologies, LLC which has developed a totally chemical-free bacteriological solution to pre-treat water in the underground sewage systems - a process which is suited to both municipal and industrial customers. Two further investments were made in owner-operators, i.e. project based companies who own the assets they operate. The first investment was made in Ranhill Water Technologies - a pan-Asian water developer with a presence in Southeast Asia, China and India. The second investment was made in China Hydroelectric Company which operates small and medium size hydropower plants in China.

FourWinds Capital Management, the Company’s investment manager, has also strengthened its team of investment professionals focused on the environmental sector, with a particular emphasis on water and water solutions, as well as individuals dedicated to operations and risk management.

Highlights from Aqua’s results include:

• Invested €6.5 million in aggregate over the year, for an approximate 17 percent stake in Bluewater Bio International;
• Completed joint venture with the Ranhill group to invest US$12.6 million (€9.3 million) in Ranhill Water Technologies (Cayman) Limited in return for a 45 percent stake;
• Invested US$3 million (€ 2.1 million) growth capital in In-Pipe Technology Company, LLC for a 14 percent stake, with further investment expected in 2010 (subject to certain milestones being met);
• Made a US$20 million (€9.3 million) pre-IPO investment in China Hydroelectric Corporation, which subsequently launched an IPO and was listed on the New York Stock Exchange in January 2010. Aqua currently owns a 4 percent stake in the company.

Since the end of the year the Company has completed additional investments bringing the total invested amount to 80% of net assets.  At 31 December 2009, the Company had invested approximately 53 percent of its net assets and the audited net asset value per ordinary share of the Company was €1.0219.