The megatrend of healthy eating in Western countries is adding to the appeal of agricultural investments, and LGIAsuper is seeking to capitalise on its growth by adding to its growing portfolio in the asset class.
In an effort to diversify, the super fund committed to Folium Capital’s agriculture and timber funds, which included assets in Australia, Brazil, California, Chile, Iberia and Panama.
“The depth of the agriculture sector right now reflects several trends, including consumer interest in healthy food, borrowing food ideas from other cultures, and year-round demand for seasonal produce,” LGIAsuper head of investments, Guy Rundle, said.
In addition to offering diversification, Rundle hoped that the investment would also help grow members’ balances, as it built on an agricultural portfolio designed to capitalise on the sector’s growth. The fund had also invested in The Houweling Group, a leading North American greenhouse vegetable grower, propagator and marketer, and the Central Queensland Livestock Exchange.
Folium Capital managing partner, Alvaro Aguirre, said that while the firm’s latest agriculture and timber funds were still in their early stages, he expected their future returns to be attractive.