The Sustainable Resources Fund (The Fund) is an open ended fund that aims to raise US$100 million for investment in a mix of Agro-Forestry, Land and Sustainable Agricultural sectors.
Online PR News – 31-August-2012 –The first close date is 3rd December 2012 by which time the fund anticipates one or two large investments of around US$10 million each, as well as numerous contributions from sophisticated and well informed personal investors. This fully regulated fund has the great advantage of being Sharia Compliant and appeals to both Islamic and 'green' investors.
Combined with the skills of the investment manager Alpha Wealth Management, and the fund administrator Apex Fund Services, a strong fund advisor team has been assembled at Sustainable Capital S.A. providing prudent diversified investments across geographically diverse regions, different species and plantations to reduce project specific risk. Utilising tough ethical, environmental and commercial criteria to each investment, their mission statement is to generate wealth through sustainable resources.
By balancing high reward assets in Asia & Africa, with cash generating projects in Europe & America, the Sustainable Resources Fund is anticipating a target return of up to 15% for investors, net of fund fees, with a mix of Agroforestry, Biomass, Land and Sustainable Agricultural investments. "This class of investment also offers good levels of protection against inflation" stated Michael Young CFA, Fund Advisor "it is also reasonable for most long-term investors to allocate between five and ten percent of their portfolios to green investments". The Agroforestry sector has the additional advantage of not being correlated to equities enabling well informed investors to access interesting opportunities in natural resources.
As a fully regulated fund in this sector the Sustainable Resources Fund has already received considerable interest from pension funds and pension investors; the supporting case for sustainable agriculture, forestry and biomass investments is indisputable. The World's population of seven billion people continues to grow, and within this demographic there is a shift, predominately in Asia, of increasing standards of living. By 2030 two thirds of the World's middle classes will reside in Asia. Increases in both population and standards of living will combine to generate substantial future demand for natural resources products of food and biofuel alone.
New sustainably managed plantations and farms provide a commercial solution to this demand and also help minimise the erosion of existing natural resources. "There is a strong ethical case for allocating capital to the sustainable resources sector, and the portfolio diversification benefit makes investment in sustainable resources increasingly compelling" added Michael Young.
Additional liquidity for The Fund is to be supplied by investments in suitable and approved equities. One intended example of such investments is the agricultural sector within Saudi Arabia as these equity acquisitions comply with both the ethical and Shariah obligations of the fund. They also promise interesting returns as the country is benefitting from population growth and pursuing a food security policy by accumulating agricultural assets. "The Saudi Arabian equity market is increasingly open to foreign institutions and relative to other emerging markets offers a wide range of opportunities at attractive Price to Earnings ratios" commented Michael Young "here we can provide the fund with liquid assets whilst retaining the core investment objectives of the fund"
The fund's primary objective is to provide capital growth by investing in a portfolio of forestry, agriculture, biomass, farmland and other sustainable resource assets globally. The fund may also invest in equities or other financial instruments in companies engaged in the sustainable resource industry. The Investment Advisor (Sustainable Capital Luxembourg) will identify and evaluate appropriate projects, equities or financial instruments and will submit a formal recommendation to the Investment Manager (Alpha Wealth Management Luxembourg) and the Shariah Board (Amiri Shariah Investment Platform SICAV-SIF).