Where there’s muck there’s brass!

Increasingly, in the wake of the debacle that has taken place in the traditional stock markets over recent years, more and more niche funds have been established to take advantage of particular sectors where the demand/supply curve is heavily weighted in their favour, whilst not being connected to the volatile markets.

One such niche is waste management, recycling and renewable energy. Whether well versed in this arena or not, most of us can see that the problem of dealing with waste throughout the developed and developing world is an ever increasing issue. Technology has now advanced to the extent where almost all the components of municipal solid waste can be separated and broken down. This results in virtually all of the remaining elements treated having a positive use, providing everything from electricity sold back to grids, to biogas, compost and refuse derived fuel (RDF). In addition, metals, plastics and glass can be extracted and resold for recycling.

How does this become something viable for investors? Well, the organizations providing these services often have local governments as their customers and, in many cases, receive investment from funds in this sector, thus offering a secure, worthwhile and consistent return for both the providers and the funds. With such a large back log from landfill sites and other outdated methods of handling waste, there are opportunities to build plants, based on the new technologies, as capital return projects, as well as there being the facility to charge 'tipping' fees for waste arriving at the gate, and other income streams from the sale of electricity, plastics, metal, glass and RDF.

The volume of independent information available to me clearly indicates that the world will seemingly be dealing with this matter for generations to come, reinforcing the ongoing demand for the services provided by these companies.

To date, funds operating in this field have targeted returns of 8-10 percent per annum but are actually either at the top end or exceeding that range. I will not have to tell many of you that, in these uncertain times, secure, consistent performance with a reasonable level of return is both very welcome and far from easy to find.

With an ever growing need for systems to handle the world's mountain of waste and a constantly-increasing number of customers with a need for such services, the sector's future does not seem in doubt.

Tim Whiteley of IFA International has over 25 years as an IFA, advising international investors and expatriates, both onshore UK, and offshore in Asia. With offices in Bangkok, and regular client visits to Pattaya, specializes in wealth protection services, offshore trusts, QROPS UK pension transfers and QNUPS, creating tailor made investment solutions for individuals around the world.

Important Note – This article contains general information only and is not intended to be taken as specific financial, investment, or tax advice. A personal analysis should always be obtained.

IFA International does NOT provide discretionary portfolio management, securities advice, forex trading, or local brokerage / insurance products. The services that IFA International Group does provide are for expatriates and international investors only and are NOT applicable to local nationals. This is NOT a solicitation to sell or market securities.

Questions to the author can be directed to: timwhiteley@ifainternat ionalgroup.com