Institutional investors consciously choose sustainable farmlands
Following the launch of the Kempen SDG Farmland Fund, in collaboration with Stichting Pensioenfonds PostNL (PostNL Pension Fund Foundation), two leading insurance companies, Coöperatie DELA and De Goudse, have joined to invest in efforts to make farmland more sustainable. A total o€ 150 million was secured during this investment round, helping the fund to achieve a volume of approximately € 350 million since its foundation exactly six months ago.
The Kempen SDG Farmland Fund invests in farmlands across the globe that both offer an attractive return and contribute towards sustainable food production. For this purpose, we have identified concrete and measurable indicators (KPIs) in the field of climate, soil health, biodiversity, water quality, and the use of resources. Examples of crops include avocados, olives, and almonds in Australia, Portugal, New Zealand, and the United States, as well as annual crops such as grains, beans, and vegetables in Denmark, the United States, and Australia.
With this fund, institutional investors have an opportunity to contribute directly towards their sustainability goals. Kempen expects the demand for this type of investments to continue to increase.
Frank Eizinga, Chief Investment Officer of Coöperatie DELA, explained: ‘We are further diversifying our portfolio while at the same time contributing towards the achievement of our sustainability goals. What attracts us the most in the Kempen SDG Farmland Fund is that a sustainability plan is drawn up for each investment, making the sustainable goals concrete as well as creating accountability for the achievement of the goals.’
Pieter de Frel, Chief Financial Risk Officer of De Goudse Verzekeringen, added: ‘As a family business, we attach great value to sustainable business practices. This investment, which is fully grafted onto sustainability and entrepreneurship, will enable us to contribute to a healthy climate and biodiversity. In addition, we consider farmland an attractive diversification in our portfolio.’
Richard Jacobs and Edzard Potgieser, portfolio managers of the fund, added:‘Besides the returns and the ecological aspects of this fund, we feel that the social factor is very important as well. By investing in this fund, we enable young farmers to use new capital to achieve their long-term sustainability goals. We are very pleased to be able to welcome Coöperatie DELA and De Goudse as investors, after they have thoroughly investigated our philosophy, processes and procedures, and our approach. We look forward to engaging in a dialogue with these clients in order to discuss how we can proceed together and take further steps in the field of sustainability.’
About the SDG Farmland Fund
The Kempen SDG Farmland Fund aims to deliver attractive long-term returns to its investors by investing in agricultural land across the globe. The sustainable development goals are an explicit part of the investment strategy, and as such are subject to annual measurement and reporting. The focus is on investments in sustainable agriculture and farmlands located in OECD countries. The fund will invest in various types of crops, both permanent and annual crops. The majority of the investments are expected to take place in North America, Western Europe, and Oceania (including Australia and New Zealand). The fund manager will cooperate with local partners specialized in agriculture to ensure proper operational management of the farmlands and to tap into and leverage local knowledge and expertise. The fund is only available to professional investors.
An advisory board is included in the fund to ensure that large investors have influence on the investment policy.
Kempen Capital Management NV (KCM) is the administrator of the Kempen SDG Farmland Fund (the ‘Fund’). KCM is authorized as administrator and supervised by the Netherlands Authority for the Financial Markets. The Fund is registered with the Authority for the Financial Markets under the licence of KCM. The fund is only available to professional investors.
Investors must not rely on this information for investment decisions. For further information, please refer to the placement memorandum and the Terms and Conditions (available in English). These documents are available at the KCM website (www.kempen.com/nl/asset-management). The information on the website is (partly) available in Dutch and English. The value of your investment may fluctuate. Past performance provides no guarantee for the future.
About Kempen Capital Management
Kempen Capital Management is a specialist asset manager with a focused approach and a clear investment philosophy. We believe in long-term stewardship for our clients and other stakeholders. Kempen provides sustainable returns through activities in the field of fiduciary management, manager selection, portfolio construction and monitoring, and a select number of actively managed investment strategies. On 31 December 2020, Kempen Capital Management had a total of € 88.3 billion in client assets under management.
Kempen Capital Management, part of Van Lanschot Kempen Wealth Management NV, is a specialist and independent wealth manager. Kempen Capital Management NV is licensed as a manager of various UCITS and AIFs and authorized to provide investment services and as such is subject to supervision by the Netherlands Authority for the Financial Markets.
For more information, please visit: kempen.com