Portfolio Holdings Update, February 2013— download pdf
At High Impact® we believe that lack of water will increasingly become a major concern not just for the Third World but for the developed world as well. The world's population is growing rapidly as is the need for water for increased food production. Take for example the Chinese, who are very aggressive in their search for water. Currently they are buying large tracts of land in Africa and have formed alliances with Argentina to help ensure their population will have enough food and water. There is little doubt at High Impact® that if we are to reduce possible water-related conflicts - or "water wars" - we must start now to reduce water waste.
Investing in water-related companies has been part of the social mandate of High Impact® since our beginnings. However, it is very difficult to find suitable companies for investment. Many candidates for investment involved in water-saving technology are large conglomerate companies that may be involved in nuclear energy or other industries not appreciated by our clients.
A company that does fit our criteria for investment is Lindsay Corporation (LNN.NYSE). Lindsay Corporation designs, manufacturers, and sells irrigation systems that are used primarily in the agricultural industry to increase crop production while conserving water. Lindsay also addresses waste in industry by providing custom solutions with everything needed to harvest, store, and control water distribution. Our investors should know that they can play a part in water solutions with their ownership in shares of Lindsay Corporation.
Personally I live in a community that supports rain harvesting. Tucson City Water offers its customers up to $2000 for the installation of rain catchment systems in homes and businesses. Please check out my February video above, showing our front yard being transformed from city water dependent to a front yard dependent on rainwater only.
The themes of clean energy, clean water, nutrition, microfinance, finance, and sustainable building products provide an investing roadmap for High Impact® that precludes buying companies such as those involved in oil or fracking or other industries. We make no apologies for having strict guidelines to our investment program. There will be months or even years when some or all of our investing themes will outperform or underperform the major stock market averages, but we are not chasers of short-term performance. Our long-term focus offers investors an opportunity to participate in those industries that may grow more than the general market by investing in companies that offer solutions to 21st century problems.
It is very important to note that the risk tolerance of a particular High Impact® program must match your particular portfolio. Since we offer programs for clients across the risk spectrum, we manage risk by designating a range of products from aggressive equity-only portfolios to portfolios that include fixed income investments. Clients who wish High Impact® to manage only a portion of their invested assets may find the aggressive allocation most appropriate, but clients who have placed a majority of their investable assets with us will find fixed income investments included in the investment mix.
We can and must all do our part in finding solutions to our energy, water, and healthy food related problems. Investing in High Impact® portfolios is one way to make a difference, just as supporting rain harvesting on the local level helps.
Please consult your financial advisor regarding specific performance information or in regards to investments in your portfolio.
Thomas Moser
Portfolio Manager
High Impact Investments®
(520) 370-1629
