Alternative Outlook

The lush green fields of the West are set to increase in value so much in the next four years that they are a better investment for the rich than gold, oil or an apartment in Mayfair.

That is the conclusion of research by leading economists who said that the value of farmland – even if it is not on the edge of a town and has no chance of being sold for development – was set to rise by 37 per cent by 2016.

And that return beats all the forecasts of growth for gold, traditionally the safe harbour for the world’s millionaires in troubl…

Some of the world’s biggest pension funds said they have been ploughing money into farmland around the world as they seek to diversify portfolios and generate stable returns at a time of market volatility.

At an agriculture investment summit in London on Wednesday, leading U.S. and European pensions funds said few assets remained immune from whipsawing markets, prompting institutions to look at farmland.

“The crisis has accelerated our agriculture program,” said Jose Minaya, head of natural resources and infrastructure investments…

The price of British farms will rise higher than any other class of real estate in Europe over the next four years driven by investors buying farmland to capitalize on growth in global demand for food and also to shield wealth and pay less tax.

Farmland values will rise 37 percent by 2016, beating forecast growth for gold, oil, ten-year British government bonds and homes in London’s most exclusive neighborhoods, according to data compiled by Oxford Economics and the research arm of property consultant Savills. The United Nations’ f…

When it comes to investing in fine wines, investors appear to be concentrating on French produce alone and may be missing out on grapes grown in Austria, Italy and Portugal, according to research published by professors at the University of East Anglia’s Norwich Business School.

Dr Apostolos Kourtis, lead author of the report and a professor at the school, says: “The investment market deals mostly with French wines, but we found that diversification across the different varieties of French wine is not that effective.

“However, our r…

Returns from let farmland and other rural property increased sharply in 2011, outstripping gains from commercial and residential investments and confirming the rural sector’s position as the top-performing UK property asset in recent years.

Figures from the latest IPD Rural Property Investment Index show the sector delivered an overall return of 15.9%, well ahead of the 9% recorded in 2010.

That return was also well above that from commercial property at 7.8% and residential property at 11.3%. Bonds ran a close second to farmland at …

FRA is welcoming a report from the UN, which says that countries need to introduce the right policies to ensure that their forestry assets fulfil their potential.

The report claims that if the world’s forests were managed properly and sustainable, they could create a solid green economy. The report also includes the UN pledge to replant 18 million hectares of forests – a move that has been welcomed by FRA, a research and analysis consultancy specialising in forestry investment and sustainability.

UN Food and Agriculture Organization (…

There are three core reasons why institutional investors will continue to pour money into alternatives, according to a new report on the sector.

These are diversification, protection against volatility and seeking non-correlated returns.

They are revealed in the annual Russell Investments Survey on Alternative Investing report which is based on interviews with 146 institutions totaling more than $1.1 trillion in assets across North America, Europe, Australia and Japan.  The survey found respondents cited diversification and shelter from…

If the secret to investing is buy low and sell high, the steep drop in fine wine prices – down between 25% and 40% from a year ago – could be an opportunity to diversify a portfolio – or not.

“I think there’s plenty of air left in this bubble. There’s more of this drop to come,” economist and author Robin Goldstein said on the sidelines of the American Association of Wine Economists’ (AAWE) annual conference at Princeton University last week.

Some investors are hoping alternative assets like fine wines will net them better retur…

Advisers may have to discuss sustainability with clients in response to FSA rules.

In his book Screw Business As Usual, Richard Branson reveals his vision for the future when businesses and individuals embark on a whole new way of doing things, shifting values and switching from focusing solely on profits to caring for people, communities and the planet.

This attitude fits neatly with financial advice, and so it is appropriate that when advisers talk to their clients they raise the opportunity of utilising sustainable and responsibl…

Uncertainty over the viability of the European Monetary Union and volatility of the euro may incite investors to seek refuge in wine, suggest financial experts including John Authers, FT columnist and author of The Fearful Rise of Markets.

While his is a cautionary tale, Authers notes that the scenario offers short-term opportunity for bold and disciplined investors who can spot a potential bubble and sell before it bursts.

‘There are many people who will talk very caustically and matter-of-factly about “can I find the next bubbl…