12 months ended June 2022
This report is for the investment pool ended June 2022.
Classification: Alternative Asset
Benchmark: 9.90%
Period: 12 Months (30 June 2021 - 30 June 2022)
When your investment started in mid 2021 many of us were adjusting to the pandemic and the new way of life. Many things might have changed over that period but the one thing that has remained consistent are the returns from the Cattle Investment. With the cattle investment playing a key role in food security, the consumption and demand for beef has continued worldwide even though many other sectors came to a complete halt. The industry has shown resiliance, and the ability to weather the pandemic. Your Investment has come to an end and we hope you reinvest your funds with us.
Upfront Fee: 2.80% (Excl VAT) Performance Fee: 20%*
*Performance fee is only charged on returns that exceed the benchmark.
The portfolio is a long term investment that aims to achieve capital growth over time horizon of 12 months. It aims to generate a return from buying and selling cattle while putting measures in place to reduce the related risk.
This is a cattle investment portfolio. Calves are purchased between the weight of 200kg - 240kg. The calves are placed into backgrounding for a period of 60 days with the purpose of acclimatising them to the farm and getting them ready to enter the feedlot. In this time, the cattle graze in designated areas on the farm for a period of 60 days to ensure the optimum weight is reached. Once the cattle have reached the optimum weight, the cattle are sold under an offtake agreement to Beefcor for placement into the Feedlot.
There are market price risks associated with this portfolio. The Cattle are sold at the prevailing market price when the optimum weight is reached. Market factors such as an increase in demand or an increase in supply for beef may impact the price positively or negatively respectively. We have put measures in place to manage the associated risks through constant monitoring of the market price and ensuring the sale at the correct point in the market. Other market forces such as disease outbreaks and regulation change can also impact this portfolio.