GAIA FARMING 20 INDEX AND TRACKER CERTIFICATE
GAIA Capital and EFG International Finance Guernsey LTD are launching a Tracker Certificate on the Farming 20 Index with an expected issue date of February 14, 2013.
The GAIA Farming 20 Index is a highly targeted index
based on our GAIA Farming Index but with a small number
of constituents and more focused on listed, highly liquid farming companies around the globe. The Certificate's strategy attempts to select socially responsible companies in the global farming industry that exhibit strong fundamentals, open ant transparent corporate governance, liquidity and attractive valuations, and possess high performing management teams.
The investment rationale aims to capture future growth based on FAO estimates that to meet growing demand
food production must grow by 50% by the year 2030
and by 80-100% by the year 2050. Plus these additional drivers.
- Population growth, demographic trends and wealth creation
- Vertical integration and value capture
- Improvements in farming techniques and equipment
- Agri land price growth and inefficiencies in a neglected sector
Major structural changes are taking place in the global agricultural sector, wich are driving food demand, crop prices, and subsequently, capital flows into agriculture. Despite global farm production representing nearly 25% of total agri sector
value added, the market capitalization of farming is still less than 3% of the total. This massive under-capitalization relative to economic importance represents a unique opportunity for investors as farming companies grow and revalue in the coming years!
The GAIA Farming Indices and GAIA/EFG International Finance Guernsey LTD Tracker Certificate offer investors liquidity, high growth profiles, and low correlation to global markets. For additional information on the Indices or the Tracker Certificate, please contact the GAIA Team, or see the links to materials below.