Portfolio Factors
Agriculture and farmland have attractive fundamentals for astute investors providing strong risk adjusted returns, low volatility, diversification and a hedge against inflation.
In Australia, agriculture compares favorably with more mainstream asset classes on a risk adjusted returns basis.
Farmland has superior investment qualities. The key reasons for investing in agriculture and farmland include:
- It is NOT correlated to mainstream asset classes making an excellent opportunity for diversification.
- Top performing Agri is stable and secure, obtaining annual returns of over 10% since 1982, with low rates of volatility (refer chart at left).
- Agri offers alpha returns in a falling equities market. It’s a high performance defensive strategy.
- Returns can be risk managed, bond like and underwritten.
- It offers strategic and tactical opportunities for assuring food security.
- It is a tangible, real asset class which is core to human existence.
- US/UK/EU pension funds, endowment funds and high net worths are investing worldwide in farmland and timberland - NOW.
- Quality agri assets generate predictable cash returns.
- Ideal for defined benefit funds or funds with set performance hurdles.
- Three billion aspirational people with westernising diets live within 10 weeks sailing time of Australia.