LONDON, Nov. 7, 2016 /PRNewswire/ -- It's no wonder institutional investors are keen on agricultural opportunities in Australia with its combination of low geopolitical risk, innovative R&D and available scale. At the annual Global AgInvesting (GAI) Europe, 5-7 December 2016 at The Landmark London, leading investment strategists from Hancock Agricultural Investment Group (HAIG), Milltrust Agricultural Investments Ltd. and others will substantiate the lure of investing in Australian agriculture.
For HAIG's Richard Bodio, portfolio manager, the openness of Australia to allow foreign capital investments in their country is a great advantage. With estimates by FarmInvest Australia that $400bn will be needed to support the structural shift in farm ownership in the area over the next 40 years, this openness is almost a necessity. "A lot of institutional investors go directly to the U.S. to build their farmland portfolio," said Bodio, noting that HAIG is "very bullish" on Australian farmland space. "We'd encourage them to look to Australia for farmland, which would provide enhancements to a very diversified portfolio."
At GAI Europe, which is hosted by HighQuest Group, Bodio will outline the opportunities in this region. He will focus on diversification with row crops and permanent crops, the difference between water rights in the U.S. vs. Australia, the size of the opportunities in the U.S. compared to Australia, and the land valuation differences between the two countries.
Simon Hopkins, chairman of Milltrust Agricultural Investments, will expand this topic when he moderates a case study discussion: European Institutional Investor Engagement in Australia & New Zealand. "Although the global agriculture sector has faced declining commodity prices in recent years, interest and investment remain strong in the sector, especially in Australia," said Hopkins. So strong in fact that Milltrust has formed a dedicated team and undertaken an extensive review of the opportunity set in the country, particularly in consideration of securing capital from one of the UK's largest local authority pension funds.
At Global AgInvesting Europe, Milltrust will present their unique approach to farmland investments with the support of the pioneering Berkshire Pension Fund, discussing where ag best fits within an overall asset location, how to mitigate risks in farmland investments, and the best long-term options to deliver both income and attractive long-term gains.