OUR AGRICULTURAL INVESTMENT PHILOSOPHY
Our philosophy is to build diversified global agricultural investment portfolios customized to meet specific investor requirements.
ZIRCONSTAR’s investment philosophy reflects our belief that to optimize performance, farmland investments are best identified and managed through the integration of both property and portfolio-level expertise.
Once our investment professionals develop model portfolios and return targets based on client objectives, we source properties by utilizing our property-level industry expertise and strategic relationships. Our investment strategy is based on research and investment fundamentals. Clients can benefit from our successful integration of quantitative portfolio management skills and hands-on property-level farming knowledge.
We follow a top-down, bottom-up investment strategy, in a three-step process:
1) In each country, identify those crops which farmers can produce competitively in a global market.
2) Identify production regions for those crop types identified in step 1 that provide a sustainable competitive advantage.
3) Identify properties in low-cost production regions that have the highest expected risk-adjusted returns. D<6>emonstrating our Commitment to Responsible Investment6>
By becoming a signatory to the United Nations Principles for Responsible Investment, we are formalizing our approach to integrating environmental, social and corporate governance (ESG) issues into our investment analysis. We believe good management of ESG risks can lead to long-term sustainable returns. We have been an early adopter in ESG practices having managed sustainable investment strategies in timber and farmland for many years.