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Coast Sullenger Benedicte Gravrand, Opalesque Geneva:
Part 1 of the article can be accessed here: Source.
Last month, Geneva-based commodity funds boutique GAIA Capital Advisors launched the GAIA Farming Index. Indxis Ltd, a provider of bespoke indices, will independently administer and update the calculations and pricing of the index on a daily basis, while GAIA will manage the index according to a clear methodology. The overwhelming theme of the index is food production to "feed the world".
Over three years, the Index has an annualized return of 20.29%, outperforming such references as MSCI EM small & mid cap by 8.56%, according to back-tested data.
"One of the key themes behind the index is that the agricultural industry as a whole needs to grow in market capitalization," Coast Sullenger, GAIA’s managing director, tells Opalesque. "A more capitalized industry will put that capital to use and grow production." As indeed, there is very little financial involvement in farming right now.
According to Sullenger, in the financial industry, farming is significant with nearly a quarter of the economic value-added of the industry.
An analysis done by GAIA found that farming is in fact less than 3% of the total market capitalization of the industry, meaning it is heavily undercap...................... To view our full article Click here
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