Yiannis Mostrous recommended Hyflux Water Trust (OTC: HXWTF) a little more than two years ago, on Oct. 14, 2008, as a way to play the water infrastructure theme in China and in other emerging markets in Asia. At the time the stock was changing hands at USD0.27 a share. Today it’s trading just slightly below an all-time high, at USD0.58.

The initial burst to the USD.50 range was fueled by strong underlying fundamentals. Hyflux Water Trust holds interests in 21 projects, including water treatment plants, wastewater recycling plants, water recycling plants and desalination plants. It was a way to play one of the world’s surest trends–the need to secure water supplies that are increasingly stretched and threatened by population growth and pollution–and collect a double-digit yield.

In late summer a joint venture of the trust’s parent, Singapore-based Hyflux (OTC: HYFXF), and Japan-based Mitsui & Co offered to acquire outstanding shares of Hyflux Water Trust for USD0.58 (SGD0.78); unitholders recently approved the offer.