Skip to main content
Login to access your documents and resources.
Confirm your location
location select
language select

A novel approach to optimizing a global farmland portfolio

Skye Macpherson
Head of Global Asset Management and Acting Head of Europe, Nuveen Natural Capital
Derek Jun
Head of Climate Risk Oversight, TIAA and Nuveen
Gwen Busby
Head of Research and Strategy, Nuveen Natural Capital
Farmland on a hill near a lake

Nuveen Natural Capital believes that a globally diversified portfolio is the best way to invest in farmland assets. By diversifying the crop mix and geographies, investors can protect against external physical and market risk factors such as weather, crop price volatility and government intervention and regulation. But this leads to a question: what is the optimal way to construct a globally diversified farmland portfolio?

In this paper, we examine Nuveen Natural Capital’s approach to portfolio construction, outlining how we apply risk and optimization modeling to build risk-return efficient portfolios of farmland investments. We also demonstrate how an investor’s approach to currency risk has a material impact on regional allocations. Finally, we demonstrate that there are material allocation differences in optimal portfolios depending on whether an investor’s investment objective is to maximize cash yield, total return or both.

Download the full article

Infrastructure Mind the (economic) gap: Infrastructure Debt 2024 Report
Nuveen’s Don Dimitrievich recently shared insights in Infrastructure Investor’s debt report, including his view that despite a volatile economic environment, infrastructure debt allows investors to find opportunity in the gaps. Read the full Q&A to find out more.
Alternatives Global Thoughts Newsletter: Spring 2024
Nuveen Natural Capital shares updates on their global operations, including recent acquisitions, initiatives and leadership insights in the Spring 2024 Global Thoughts Newsletter.
Alternatives Are U.S. low carbon fuel standards driving a structural change in oilseed demand that could support farmland returns?
Potential implications for oilseed demand and farm margins stemming from low carbon fuel standards and the expansion of renewable diesel refining capacity are analyzed.
Contact us
Our offices
London skyline
201 Bishopsgate, London, United Kingdom
A word on risk
As an asset class, agricultural investments are less developed, more illiquid, and less transparent compared to traditional asset classes. Agricultural investments will be subject to risks generally associated with the ownership of real estate-related assets, including changes in economic conditions, environmental risks, the cost of and ability to obtain insurance, and risks related to leasing of properties.

Nuveen, LLC provides investment solutions through its investment specialists.
Back to Top