Investment objective
The Fund aims to generate a total portfolio level internal rate of return (IRR) after fees, expenses and Fund level tax of 7% to 11% per annum via a stable income stream from leasing the Fund’s assets to high quality agricultural businesses (tenant partners) and from long-term capital growth.
Investment strategy
The Fund targets higher value agricultural assets in different regions and sectors, ranging from fruit and nuts to intensive livestock and viticulture, with quality tenants and attractive lease terms.
Fund Facts
| Fund Assets Value | $118m |
| Agri Assets | 6 |
| Weighted Average Lease Expiry | 11 Years |
| Inception Date | 13 May 2020 |
| Distribution Frequency | Quarterly |
| Agri Production Regions | 5 |
| Average Gross Rental Yield^ | 6.6% |
| APIR Code | WRA2298AU |
Investment Approach
The increasing global demand for food and commodities positions Australian agriculture well to capitalise on its competitive advantages and future growth prospects to deliver strong investment returns.
An investment in agriculture can offer:
- Competitive risk adjusted returns over the long term;
- A low level of volatility relative to other asset classes; and
- Returns uncorrelated to other traditional asset classes
Watch this video to learn more about the Fund and the advantages of investing in Australian agriculture.
Portfolio Overview
As at 30 September 2023
| 27% | Viticulture | |
| 25% | Horticulture - Nuts | |
| 21% | Horticulture - Soft Vegetables | |
| 16% | Agri Infrastructure | |
| 11% | Horticulture - Fruit & Citrus | |
| 0-40% |
Fruit (Citrus, pears, olives, apples, avocados, mangoes & berries) |
|
| 0-40% |
Nuts (Almonds, macadamia, walnuts & pistachios) |
|
| 0-30% |
Vineyards (Wine & table grapes) |
|
| 0-30% |
Intensive Livestock (Poultry meat) |
|
| 0-20% |
Agricultural Infrastructure (Processing, greenhouses & storage) |
|
| 0-30% | Water Entitlements | |
The investment portfolio will continue to be developed over time within the Fund’s long-term strategic asset allocation framework, with individual investments and portfolio weightings subject to opportunities and valuation. An indicative portfolio of assets with the Fund fully invested at $300m is provided above.
Performance, Price & Distributions
Net returns as at 30 September 2023
| 3 months % |
1 Year % |
2 Years % pa |
Since Inception (13 May 2020) % pa^ |
|
|---|---|---|---|---|
| Distribution Return | +1.22 | +4.71 | +4.88 | +4.43 |
| Capital Return | -0.07 | +0.92 | +2.56 | +2.14 |
| Total Return | +1.15 | +5.63 | +7.44 | +6.57 |
Returns are after fees and fund costs, before investor tax and performance fees.
Past performance is not a reliable indicator of future performance.
| Month-end Unit Price Prices as at 30 September 2023 |
|
|---|---|
| Application Price | $1.0741 |
| Distribution Rate | Reinvestment Price | |
|---|---|---|
| 30 September 2023 | $0.0132 | $1.0741 |
| 30 June 2023 | $0.0115 | $1.0749 |
| 31 March 2023 | $0.0123 | $1.073 |
| 31 December 2022 | $0.0124 | $1.078 |
| 30 September 2022 | $0.0126 | $1.0643 |
| 30 June 2022 | $0.0125 | $1.0674 |
| 31 March 2022 | $0.0108 | $1.0415 |
| 31 December 2021 | $0.0142 | $1.0426 |
| 30 September 2021 | $0.0149 | $1.0211 |
| 30 June 2021 | $0.0183 | $1.0114 |
| 31 March 2021 | $0.0186 | $1.0041 |
FUND RATINGS & PLATFORM AVAILABILITY
| Platform | |
|---|---|
| BT Panorama | Perpetual |
| HUB24 | Powerwrap |
| Macquarie Wrap | Praemium |
| Mason Stevens | Netwealth |
| Morgan Stanley |
How to Invest
The prospects for future returns in agriculture are strong in Australia, with a good economic platform, stable government, strong global market access and high adoption of new technology and farming systems that are increasing the productivity and sustainability of agricultural production.
Well managed agricultural investments can also provide investors with a stable income profile.
The Warakirri Diversified Agriculture Fund is available to Australian wholesale investors only. For more information, please contact us on 1300 927 254 or contact@warakirri.com.au for a copy of the Information Memorandum.
^ The Fund’s Since Inception Return calculations begin as at the first, modestly sized, capital call in May 2020 and include over 5 months of data before the Fund settled on its first asset on 30 October 2020. Inception date was 13 May 2020.
The Zenith Investment Partners (ABN 27 103132 672, AFS License 226872) (“Zenith”) rating (assigned 15 December 2022) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines
This website is maintained by Warakirri Asset Management Limited (ABN 33 057 529 370) (Australian Financial Services Licence Holder No. 246782) and the information above provides general product information only and does not constitute financial advice as it does not take into account an individual’s objectives, personal situation or needs and is not an offer or solicitation to enter into an agreement. Investors should not rely on the information in this document without first referring to the Fund’s Information Memorandum (IM) and seeking independent advice from their financial adviser. An IM for the Fund is available by calling 1300 927 254. The IM should be considered before making an investment decision. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested. Investment decisions should not be made upon the basis of the Fund’s past performance or distribution rate, since each of these can vary. Any forecasts, projections or other forward-looking statements contained in this document are examples only and may involve elements of subjective judgment and assumptions as to future events which, may or may not be correct or which may later change. There are usually differences between forecasts, projections and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material.