Tag Archives: management
Provider View: Demand Is Growing Fast
Numerous firms fall into the agriculture investment universe – and most offer opportunities By Jonathan Blake | Published Jul 01, 2013 Demand for agricultural resources, products and technologies is set to rise significantly, driven by a fast-developing global population. Against this backdrop, the investment case for agricultural equities continues to be driven by sustainable global demand on one side and the instability and inadequacy of supply on the other. As such, the business of feeding the world merits consideration for any well-diversified, long-term investment portfolio. The United Nations expects the world’s population to grow to more than 9bn by 2050. This means than in less than 40 years we will have 2bn more mouths to feed, with three-quarters living in the developing world. Food preferences are changing too. As individuals become wealthier, their eating habits tend to alter, with meat and protein consumption often rising sharply. This is what is happening in the large emerging markets of India and China, where demand for chicken and pork is growing. Since grain and other types of feed are major cost inputs in the production of meat, it is expected that changing dietary habits will lead to continued upward pressure on grain prices. More than that, well-supported commodity prices have also improved farming economics and provided a strong incentive for farmers to maximise output. This will continue to have positive implications for companies involved in a number of related industries such as agrochemicals, agricultural machinery and grain-handling and processing services. At the same time, there is rising interest in alternative energy sources such as biofuels, where agricultural products are the main inputs. In this area, demand will be well supported by a combination of high oil prices and regulatory incentives, as national governments continue to introduce subsidies and output targets. An environment of rising commodity prices tends to be a supportive one, but other related industries can also do well at different points in the economic cycle. For example, in an environment where soft commodity prices moderate, ‘downstream’ assets, such as processors, manufacturers and food retailers, offer interesting opportunities. These industries tend to be more defensive, as firms generally have the ability to maintain prices, even if input costs fall. Moreover, while there are plenty of opportunities in the developed western markets, many attractive ideas can be found in developing economies around the world. In Latin America, for example, there is significant potential for the region to develop as a major food exporter. Overall, a large number of quoted companies fall into the ‘agriculture’ investment universe, whether directly involved in agribusiness or in a related activity. Jonathan Blake is head of agriculture at Baring Asset Management Continue reading
Avacade Reviews Common Methods for Green Investment
Green investments are on the rise, according to a recent article from the International Business Times; Avacade reviews some of the most important green investment trends. ” ” PHILADELPHIA, PA, June 28, 2013 /24-7PressRelease/ — According to a recent article from The International Business Times, green investments are increasingly gaining traction among investors–and in a new statement to the press, Avacade reviews these trends. The article notes that many investors are increasingly eager to invest in new and efficient energy technologies, but also that there remain many uncertainties, especially because these technologies are largely untested. According to the article, though–as well as to Avacade–there are many different ways in which investors can “go green.” Certainly, Avacade would know; the company helps investors to obtain opportunities in forestry, specifically offering investments in different types of valuable timber from all across the world. “Green investments can often appear more green than they actually are,” warns Avacade, in its new press statement. “Investments such as Palm Oil, while potentially being a renewable energy source, are not so green if prime areas of rainforest are felled to make way for it, as can often be the case in places such as Brazil.” As Avacade reviews these green investment trends, it notes that the overall trajectory of green investment is a positive one–but that discernment is nevertheless necessary. “Investors globally are focusing on the green credentials of their investments and this is a positive trend,” the company opines. “However, it is often in the detail of the investments whether these are environmentally positive. All of Avacade’s investments have been reviewed thoroughly to ensure that they are truly ‘green’ investments.” The company offers a specific example from its own portfolio. “For example, the Melina investment is usually planted on old agricultural land and all native species are protected, offering a real contribution to offsetting carbon dioxide. On conclusion of the investment the land is handed over to a forestry easement trust so that the environment and local community can continue to benefit from the development of the plantation.” As for the International Business Times article, it recommends that investors not only analyze the “green” value of an investment, but also the business sense that it offers. “Before investing in renewable energy, you need to have due diligence in evaluating each of the companies,” the article advises. “To start off, you need to investigate the green company from business perspective. A good investor puts his money in good business opportunities.” Another tip offered is for investors not to become seduced by the numbers and statistics that green energy companies tend to use in their efforts to dazzle potential venture capitalists. The important thing, the article says, is for the investor to have a sense of how the products in question will be sold commercially. Still another tip is to learn something about the management team. “A company’s management team will determine its success or failure,” comments The International Business Times. “Technologies based on the coolness factor and current trends are not exactly instant guarantees to success.” As a leading name in green investment opportunities, Avacade reviews a variety of green initiatives from across the globe. about: As a leading name in responsible and socially-ethical investments, Avacade reviews green investment opportunities from across the world, and makes them available to investors in the UK and abroad. The company specializes in forestry investments, including both teak and Melina. — Press release service and press release distribution provided by http://www.24-7pressrelease.com Read more: http://www.digitaljo…5#ixzz2Xt9OeTIr Continue reading
Bluefield Bets On UK Solar Potential With Market Debut Of Fund
By Christoph Steitz FRANKFURT | Tue Jun 25, 2013 (Reuters) – Asset management firm Bluefield Partners is betting that the solar industry has the potential to grow in Britain, while taking a beating elsewhere in Europe, benefiting from favourable laws and a relatively underdeveloped market. Bluefield, which specialises in buying and managing energy and infrastructure assets, plans to list the Bluefield Solar Income Fund ( IPO-BSI.L ) on the London Stock Exchange on July 12 to raise up to 150 million pounds for the acquisition of solar plants in Britain. “The UK is in its infancy compared to markets like Germany or Italy ,” James Armstrong, managing partner at Bluefield, said on Tuesday. “We’re just going into a market that has significant growth potential.” According to figures by European solar industry association EPIA, Britain’s cumulative solar installations more than doubled in 2012 to 1.83 gigawatts. This compared with 32.4 GW in Germany and 16.4 GW in Italy , where lavish incentives for solar power have led to soaring installations over the past few years. Demand in these markets is expected to drop sharply this year, however, as governments reduce the incentives and make investment in solar power less rewarding. Armstrong pointed to favourable legislation in Britain, which said in its updated renewable energy roadmap in late 2012 that its solar market had the potential for up to 20 GW by 2020. Bluefield’s fund aims to invest the proceeds from the initial public offering within 12 months to buy solar plants that it expects will provide stable annual levels of power generation with low operational costs. Armstrong said he expected the fund to grow to about 300 million to 400 million pounds in assets over the next two to three years. Bluefield has clinched deals with British power companies including British Gas Solar, the solar contracting unit of Centrica ( CNA.L ), for exclusive access to solar projects until April 2014. The Bluefield fund will finance solar projects but not build them, reducing its operational risk. Armstrong did not want to disclose plans for concrete investments after the IPO, saying only: “We have a deep and significant pipeline.” (editing by Jane Baird) Continue reading
