Before investing any hard earned cash, it is important to understand basic investment terms so that the best, informed decisions can be made. At the very core of any investment decision is understanding capital growth.

Capital growth is fundamental to all investment principles, as without it, investing is pointless. This is because to grow capital means that the value of an asset increases. That asset can take many forms, but crudely put, if there is no capital growth, money invested either remains worth the same or, worse, it diminishes in value.

Hanover Merchant Capital offers investment that seeks only to grow capital. This is because by investing in our artisan water project through our leaseback agreements, customers receive 5.29% back each year in income. In addition, at the end of the five year contract, there is the option to sell back the contract for the original investment price. There is also the possibility, depending on the condition of the market, for customers to receive a 10% return on investment. As these three terms help mitigate risk, our artisan water project makes investing with Hanover an excellent choice for those seeking capital growth.

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The basis for any investment decision should always be the underlying belief that an asset purchased today will be worth more in the future.

One way to ensure an increase in value is to identify an asset that is mispriced and misjudged by the market and subsequently undervalued. Mispricing occurs for a number of reasons, but one would be a widely unforeseen future surge in demand for a product or service offered by a company. This surge in demand will drive a rise in price of an asset. Another way to see an increase in asset value, is for that asset to be diminishing in supply and increasing in scarcity. Oil and gold are excellent examples of this. At Hanover Merchant Capital, it is this notion that makes us believe water is a sound investment decision.

However this begs the question, given that water covers most of the earth’s surface, why invest in water?

Whilst water does, indeed, cover 70% of our globe, only a tiny percentage of this is actually drinkable for humans, and even a smaller amount of that is accessible. Knowing this, drinking water starts to become a much more finite resource than immediately thought. Furthermore, there are other important factors at play that make an investment in water a sensible selection. With an ever growing world population, set only to increase, and climate change continuing to cause problems in every corner of the globe, access to fresh water is not only crucial but increasingly difficult. Droughts, which trouble vast areas of the world, year on year, are now all too common. Plus there has been limited investment in aging pipeline infrastructure in even developed countries. All the while, demand for drinking water continues to increase with urban areas expanding more quickly than can be catered for.

Thus the discovery of a large aquifer in Namibia, for which Hanover Merchant Capital offers investment, is in an important find. It provides a necessary solution to the water shortages that are already plaguing the world. These water shortages, for the reasons mentioned above, will only continue to worsen thus providing an excellent investment opportunity due to an increased demand in the future.

The global bottled water market is expected to reach a compound annual growth rate of 9.5% from 2016-2022.


Investments into Hanover Merchant Capital’s artisan water project is done so on a leaseback agreement basis. That is all very well, but what exactly is a leaseback agreement? And, what does that mean in terms of investing with Hanover Merchant Capital?

In short, a leaseback agreement is when an asset is sold by an entity but then immediately leased, or rented, back from the purchaser. This will invariably be for an agreed price and agreed term – both of which will have been arranged before any money is exchanged between parties. As a very crude example, it would be like selling an apartment, but renting it back from the person to whom you sold it.

In terms of what Hanover Merchant Capital offers, purchasing one of our leaseback contracts, or WLAs (water lease agreement), means you will receive an annual 5.29% return on your initial investment. This acts like a rental payment. Furthermore, there is an option to sell back the contract at the original value after five years. Depending on market conditions, it is also possible to receive an additional 10% return.

In structuring our investments in this way, we believe we offer customers an easy and understandable way to invest.

 


If, like us, you believe that investing in water is a sound investment decision, you may be wondering how to invest in it. This is an important question as money cannot simply be made from bottling water straight from the kitchen tap.

Luckily, there are other routes that can be followed. The most direct approach is to purchase water rights. Doing so means to buy access to a water supply. Money can then be made from charging others for access or by selling the same water right in future at a higher price.

One of the more conventional ways to invest in water would be to purchase shares in a company whose very business is water. This would be a firm that installs water pipelines or perhaps a business that improves water quality. The theory behind investing in water utilities, or such like, is that the company will be valued more highly in the future due to higher demand and, therefore, its share price will increase.

Finally, investments in water can be made through purchasing part of an ETF or an Exchange Traded Fund. This allows investors to track an index that follows water companies and utilities. The notion behind this approach is similar to buying stocks and shares in specific water firms. However, as an ETF is a proxy for investing in all businesses in an index, it helps mitigate some risk due to following that many more firms.

At Hanover Investment Capital, we offer a leaseback agreement investment into an artisan water project. This means we have both access to water itself and the means to bottle and distribute. Customers purchase contracts that start from £5000 and receive 5.29% back each year as income. At the end of five years, there is the option to sell back the contract at the original price.

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There is no one size fits all answer to how much money any one person should invest. Any investment amount should only ever be, at most, what you can afford to lose. However, the final amount you do eventually invest should also depend on several key parameters.

When drafting these criterion, it is best to start with deciding why you are investing and how you wish to receive the profits of your investment. Do you want an income stream? If so, how much do you need? Or, do you want to grow a pot of money by reinvesting profits and dividends? If you do, what does that final figure need to be?

Once these questions have been answered, an investment timeline, another key parameter, can be set. This is a fundamental point to lay out from the start. We will all have a time span in mind for when we want to reach an investment goal – retirement is an obvious one, or perhaps saving to put a child through university.

The investment horizon will then have an impact on the strategies which are suitable for use. Whilst it is true that riskier investments can reap larger returns, it follows that larger losses can also be made. So the longer you have to invest, the longer you have to gain back any losses and build on any profits. Yet, if you have a short period to achieve an investment goal, riskier investments may have to be made, depending on the final amount needed, to produce higher returns. However, your personal tolerance to risk also needs to be kept in mind.

At Hanover Merchant Capital, investments can start at as little as £5000 and go up to £10million. In offering such a broad investment range, we can provide options to an equally broad range of investors who we understand will all have individual needs.


Before investing in artisan water with Hanover Merchant Capital, it is important to know what exactly it is.

Put simply, artisan water is drinkable freshwater found in an area underground called an aquifer.

Water accumulates in the aquifer as rain filters down through the earth’s surfaces. Eventually, so much water collates in the aquifer that it is then pushed to the surface through what is known as an artisan well. It is this very accumulation of water in an aquifer that differentiates artisan water from that which is just tapped from the water table through a traditional well.

At Hanover Merchant Capital, we have identified an aquifer in a remote, protected part of the world, deep under the Namibian wilderness. It gives us access to what we believe will become one of the world’s most necessary commodities: clean and safe freshwater. Whilst most of the earth is covered in sea water, none of this is drinkable for humans. Additionally, just a small percentage of water that is fresh is accessible to us. Thus, the discovery of such aquifers in Namibia is not only important but incredibly valuable.

With so much of the world already suffering from water shortages, a trend that will only continue with further global warming and climate change, we are confident that we have found a real investment opportunity for our clients.


Whilst we all want to find that one investment that not only doubles our money year on year, we also want to do so with no risk involved.

Unfortunately, this is akin to winning the lottery and so, within the bounds of sensible investing, what exactly is a good return on investment?

To answer this question, we must assume that at a very basic level, we all want at least two things:

1) our capital investment to keep its value and
2) for any growth to outstrip inflation at a minimum.

The latter point is key to maintaining the same purchasing power in the future of any lump sums in the present.

It is from these two points, however, that investment requirements diverge and individuals will start to view return levels differently. Whilst all investors seek to make investments that outperform inflation by as much as possible, they have to do so within the limitations set by their own personal risk profile.

So, as requirements vary from investor to investor, to answer what is a good return on investment, it is necessary to look at one’s own individual needs. It is helpful first to ask – why are you investing? What do you want from your investments? It is only from that stance, that one can say a 5% yield with little risk attached to it is a good return which is better than an investment that claims it can produce a 20% return that is far far riskier.

At Hanover Merchant Capital, we seek to circumnavigate the unknowns of investing by minimising risk. We aim to be as transparent and realistic as possible in regards to the returns that can be made through our carefully selected property developments and artesian water projects.

Importantly, we offer investments with a buy back structure so investors can be confident in recouping their initial financial outlay.

Contact us today to start enjoying free access to exclusive international property investment and water trading opportunities where a team manager will be assigned to you and you’ll immediately be sent information on our latest developments.


Before deciding whether you should trade or invest to increase equity, it is necessary to understand the differences between the two money management styles.

Trading is primarily concerned with making profits from short term fluctuations in the market to generate the highest returns possible. In general, these returns are made by buying at a low price and then selling at a higher one. The logic behind trading is to profit from several small transactions over short periods of time.

The theory behind investing, on the other hand, is to employ a longer term strategy that stretches over years, if not decades. An investor will seek to ride out any short term fluctuations in the market as opposed to profit from them like a trader would. Instead, an initial investment is usually made with a persistent trend in mind – for instance a global need for drinking water – which will ultimately result in a price rise of an asset, regardless of shorter term trends that can affect indices. Additionally, reinvesting any profits from dividends or interest can compound returns to yield an even larger investment return.

So to answer the question, should I be trading or investing, you must really think about your own ability to trade or to invest. Whilst both methods are active investment strategies (as opposed to passive investing), it is perhaps fair to say that trading is the more intense of the two, requiring constant monitoring of stock prices and indices to take advantage of short term price spikes and troughs. Whilst any long term investment will still need to be monitored, the longer term nature of this active strategy, does not require the same level of immediate action as trading can do.

Contact us today to start enjoying FREE access to exclusive international property investment and water trading opportunities where a team manager will be assigned to you and you’ll immediately be sent information on our latest developments.