Kempen introduces fund focused on sustainable farmland
The SDG Farmland Fund was created in close collaboration between Stichting Pensioenfonds PostNL, the Kempen Fiduciary Management and Institutional Solutions team, and the investment specialists of the Private Markets team. These three parties pursue the common goal of both offering an attractive return on investment and actively promoting a shift towards more sustainable food production. For this purpose, we have identified concrete and measurable indicators (KPIs) in the field of climate change, soil health, biodiversity, water quality, and the use of resources.
René van de Kieft, Chairman of Stichting Pensioenfonds PostNL and member of the investment committee, explained: “Sustainability and innovation are important ground principles of our investment policy. An asset allocation towards farmland offers us a potentially attractive return on investment as well as further diversification within our investment portfolio. The asset class of “agricultural land” is pre-eminently suited to deliver a positive contribution to the pension fund’s sustainability goals. Particularly in the field of climate change and biodiversity, there is room for great progress and we, as a pension fund, would like to make an active contribution towards this goal. With the help and support of Kempen, our fiduciary manager, we critically reviewed all options for implementation in the past year. Based on the outcome of this screening, we have selected three investments, including the initiative to leverage the SDG Farmland Fund to make an active, positive contribution to the achievement of both our investment goals and our sustainable development goals.”
Wilse Graveland and Michel Iglesias del Sol, the Fiduciary Managers for Stichting Pensioenfonds PostNL, added: “Stichting Pensioenfonds PostNL is a forerunner in the field of sustainability and one of the first institutional investors in the Netherlands to include an allocation to global farmland with specific SDG objectives in their real assets portfolio. Investing in agricultural land is a good alternative for pension funds besides investing in unlisted real estate. The return on investments in farmland comes from strongly varying underlying factors such as productivity growth, climate, and food prices. In evaluating all the implementation options within farmland, we see that there is a lot of room for further development when it comes to sustainability. The SDG Farmland Fund offers a bespoke solution that allows clients to impact the actual selection of investments, a solution that reaches far beyond what is currently available on the market in terms of sustainability.”
Richard Jacobs and Edzard Potgieser, Portfolio Managers with a focus on farmland within the Private Markets team, stated: “The SDG Farmland Fund has a seed capital of €200 million and invests in farmlands located in OECD countries. In terms of geography and crop types, this will allow us to achieve optimal structure and diversification for our portfolio. With the help of local partners, the fund will invest both in annual crops (such as cereal grains and vegetables) and permanent crops (such as fruits and nuts). With this fund, we enable investors to team up with local farmers to promote and facilitate a significant shift towards farmland sustainability. These agricultural investments will enable us to help clients such as Stichting Pensioenfonds PostNL to implement concrete, measurable sustainability goals that will significantly contribute to a sustainable food chain.”
Notes to editors
* Note: The SDG Farmland Fund is committed to the following five UN Sustainable Development Goals: 2, 6, 12, 13, and 15.
SDG 2 = Zero hunger
SDG 6 = Clean water and sanitation
SDG 12 = Responsible consumption and production
SDG 13 = Climate action
SDG 15 = Life on land
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 € 86.2 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