Global AgInvesting | 17 November 2022
Dai-ichi Life Insurance invests $50m in Nuveen Global Farmland Fund
By Lynda Kiernan-Stone, Global AgInvesting Media
The Dai-ichi Life Insurance Company has made its first investment in a farmland strategy fund, committing $50 million to the Nuveen Global Farmland Fund Lux SCSp managed by Nuveen Natural Capital.
As a land-focused asset manager, Nuveen has more than 35 years of experience in the field, and today, has $9.4 billion in AUM consisting of 300 million acres across 600 properties in 10 countries. Taking a value-added and regional hands-on management approach, Nuveen advances best practices to create sustainable production systems for food, fiber, and timber.
The Nuveen Global Farmland Fund primarily invests in farmland and related businesses in the U.S., Australia, and beyond, producing a variety of both annual and permanent crops geographically diversified across both the Northern and Southern Hemispheres for year-round production and income.
Under its mandate, Nuveen Natural Capital is seeking to ensure a stable food supply and to stabilize income streams for farmers. It also aims to promote environmentally friendly agriculture by establishing solar panel and water circulation systems on farmland for the reduction of greenhouse gas emissions and the preservation of natural resources while contributing to the UN’s Sustainable Development Goals (SDGs).
Throughout the investment cycle, Nuveen is committed to ESG integration which is analyzed, verified, and reported on as part of the goal of continuous improvement in its approach to sustainable farmland investing.
Dai-ichi noted that investments in farmland assets have the potential to be profitable even during periods of market volatility due to stable sales revenue from the marketing of agricultural produce combined with farmland leasing fees and land appreciation. Furthermore, these types of investments have a low correlation to traditional stock or bond assets, providing an ideal diversification tool that can contribute to long-term earnings for its portfolio.
The company itself is a universal owner that manages assets valued at approximately JPY38 trillion (US$27 billion) sourced from customer premiums from across Japan, and has been focused on promoting ESG investments as a means to realize a sustainable society while also realizing returns through sophisticated and diverse investment channels.