Superfunds

Categorization, commodity risk and accessing scale are among the issues Australian superannuation funds cite when it comes to investing in agriculture – but foreign pension funds do not appear to have the same misgivings.

Australia’s opportunities in natural capital made it a natural fit for the US-listed Agriculture and Natural Solutions Acquisition Corporation.

The GoFarm Responsible Agriculture Fund will invest in Australian land the firm identifies as being ripe for horticultural redevelopment.

Roc Partners’ fund close shows that agriculture’s defensive characteristics are appealing to investors with inflation here and uncertainty on the horizon.

Roc Partners partner Frank Barillaro said that many blue-ribbon Australian farmland assets sold to offshore investors may never come back into domestic hands, with superfunds still reluctant to participate in the market.

Mark Rider will take over as CIO of LGIAsuper and Energy Super in February after Troy Rieck leaves to take on a new role elsewhere.

Controversial Your Future, Your Super changes will remove an exemption to asset disclosure that has allowed superfunds to avoid revealing the value of some unlisted assets.

Associate portfolio manager Brent Snow says the fund may look to use its water portfolio to develop assets directly and take on operational risk, but sale-and-leasebacks will continue to be the main avenue for investment.

The two funds, which have either already invested in agriculture or have begun to dip their toe in to the sector, will create a A$129bn combined entity in November.

The manager has lowered the fundraising target for its Australian Farmlands Fund due to restrictions on movement, but says investor appetite for assets remains strong, especially overseas.