Global agricultural production and trade, a $2.52 trillion industry that accounts for approximately 3.5% of the world’s economic activity, represents an emerging asset class for private and institutional investors. Following decades of underinvestment, the agricultural sector has begun to attract the interest of institutional and private capital due to a combination of several factors: exceptionally strong fundamentals, the ability of real ag assets to provide a hedge against inflation, and the fact that returns on agricultural assets maintain a low correlation with other asset classes.Global AgInvestingSM Asia 2011 is bringing together leading global end investors, fund managers, academics, policy experts and agribusiness industry executives and representatives of multilateral, governmental agencies and non-governmental organizations to explore the opportunities and challenges of investing in agriculture.
The fundamentals of global agriculture are compelling for investors. A growing world population, improving diets in the developing world resulting from growing per capita disposable income and new demand for biomass feed stocks used for alternative fuel/industrial applications are expected to continue driving demand for agricultural commodities. To meet this growth in demand, even after taking into account projected productivity improvements, would require the addition of far more arable farmland than can be sustainably (from an economic-social-environmental perspective) brought into production. The resulting pressure on the supply/demand equilibrium is expected to result in continued volatility in crop prices and provide opportunities for improved profitability and enhanced valuations across many sectors of the agricultural value chain over the coming decade and beyond.
Developing an agricultural investment program presents a complex and challenging undertaking. To properly evaluate the wide range of investment opportunities requires a deep and nuanced understanding of the industry. End investors seeking to allocate capital to the sector face a myriad of choices including where (region, political risk, climate risk, types of crops) and how to invest (operating systems and financial structures) and how to evaluate and select the best managers. Global AgInvestingSM Asia 2011 will leverage the success of our flagship event, Global AgInvestingSM 2011 held in New York in early May and the Global AgInvestingSM Europe 2011 held in Geneva in September. The New York event attracted over 600 attendees representing more than:
Global AgInvestingSM Asia 2011 will help end investors to better understand the different strategies and risk/reward exposures being pursued by fund managers within the ag space. They will hear from fund managers about the challenges and opportunities presented by different geographies and operating strategies across a range of illiquid investment vehicles (farmland, infrastructure and ag private equity), as well as liquid investment alternatives including agricultural-focused hedge funds, public equities and commodity future index funds.
- $3.5 trillion in aggregated institutional assets managed by attending institutional investors;
- 25 million acres under cultivation by attending companies; and
- $12.5 billion of farmland assets managed by attending fund managers
End investors interested in developing a deeper understanding of the compelling fundamentals driving the ag sector can learn from leading analysts, academics and economists who will present at the Short Course in Ag Fundamentals which begins on Monday 5 December from 13:30 to 17:00h.
Global AgInvestingSM Asia 2011 brings together leading global end investors, fund managers, academics, policy experts and agribusiness industry executives and representatives of multilateral, governmental agencies and non-governmental organizations to explore the opportunities and challenges of investing in agriculture.