Canadian Farmland Investing | Westcourt Capital Corporation

By: Westcourt Capital  09-12-2011

The demand for agricultural products is growing every day, with global consumption of cereal crops expected to double by 2030. In fact, institutional investors, including pension funds and endowments, have long recognized farmland as a dynamic asset class with many attractive investment characteristics.

Among its other features, farmland investing provides investors with capital preservation, virtually zero correlation to the public markets, and a high correlation to inflation. Additionally, it has proven to be one of the least volatile investments in the alternative investment universe, posting gains in virtually every year since 1960.

Based on the "macro" thesis of "food, feed and fuel" and the "micro" thesis of Saskatchewan farmland being underpriced relative to similar farmland in the rest of the world, Agcapita's fund (which uses no leverage and "hedges" its exposure to commodity volatility by renting its farmland to farmers in pre-paid annual increments) provides investors with the ability to enjoy long-term gains without the assumption of significant risk.

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Real Estate Investment Trusts | Westcourt Capital Corporation

Historically, Canadian private REITs have provided total returns (income plus capital growth) of between 7-10% per annum, and typically pay distributions monthly. This liquidity has a negative side-effect on these investments: they tend to mirror the volatile movements of the stock markets very closely. They invest in revenue-producing real estate including apartments, office towers, shopping centres, hospitals and retirement homes.


Mortgage Investment Corporations | Westcourt Capital Corporation

At least 50% of a MIC’s assets must be residential mortgages, and/or cash and insured deposits at Canada Deposit Insurance Corporation member financial institutions. A Mortgage Investment Corporation is an investment fund designed specifically for residential mortgage lending in Canada. Owning shares in a MIC enables investors to participate in the income from a diversified and secured pool of mortgages.


Understanding Diversification | Westcourt Capital Corporation

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Other Income-Producing Investments | Westcourt Capital Corporation

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