|First published: August 2|
LGIAsuper is tapping into the worldwide megatrend of healthy eating following its investment into Folium Capital, an agriculture and timber fund that includes assets in Australia, Brazil, California, Chile, Iberia, and Panama.
This is because we are always looking to the mid-market to diversify our portfolio with new investments that will deliver strong results for our members.
Folium Capital is run by former managers of the Harvard Management Company, where they oversaw the Harvard University endowment’s agriculture and timber portfolio.
Alvaro Aguirre, a Managing Partner at Folium Capital, said the firm’s latest agriculture and timber funds were still in their early stages, and that future returns were expected to be attractive.
“In our prior roles, and since Folium’s inception, we have been acquiring quality land around the world, upon which we are developing high value irrigated orchards capable of delivering fresh produce to many different markets, with a potential for solid returns,” Aguirre said.
“In Chile for example, we are already harvesting and selling small quantities of hazelnuts, walnuts, cherries, blueberries and apples from the orchards that were established at acquisition, but we expect future production and sales to increase significantly once the orchards are fully developed.”
LGIAsuper Head of Investment Guy Rundle said the super fund was focused on building a diversified agricultural portfolio to capitalise on growth markets and benefit the fund’s members.
“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,” Mr Rundle said.
Investing in resources, such as Folium Capital’s latest ventures, gives LGIAsuper access to the kind of mid-market assets that many other super funds are unable to pursue.
Although we are a significant player in the market, we have never lost sight of our beginnings as a boutique fund. We still retain our strong member focus and a nimbleness that big funds may struggle to match.