The vision of quick double profit is not a priority for us. We look forward beyond next few months…
Many companies focused on fleeting matters will not survive this crisis. Farmland survives crises just fine. It does not need our human existence. Invest with us because everybody has to eat…
We expand irrigated farmland and increase the volume of vegetables and potatoes produced in Czech Republic. Transport of potatoes and carrot across half the continent will not help the nature…
We avoid offers to finance production of salads in industrial halls lit by LED technology…
The epidemics will bring economic crisis and after that the financial one is in the making because most of the countries have not solved the 2008 debt crisis by real reduction of debts…
Globalization is amazing and brings significant progress. But complex supply chains are also very fragile and it is the property we really don’t need for fulfillment of basic needs…
The Fund reacts to market opportunity and handles risk and obstacles which an individual investor could only face with great difficulty on their own rom the distance it looks very simple. I buy farmland, rent it and that’s it. However no two plots are the same, nor are the two farmers… Slowly but surely factors like the following surface: quality of soil, erosion, fertility maintenance, legal risks, cadastral records, taxes, plot adjustments, subsidies etc. Eventually when one becomes familiar with these aspects, the law changes.
More so the market knowledge cannot be taught. Our investments are therefore based on the experience of a wide team of experts – agronomists, lawyers, geodesists, traders, soil experts, economists, tax specialists and many others. We are fully aware that not many investors have time to absorb all this detail. Nevertheless farmland shall be part of a well balanced investment portfolio. The ability of the Fund, now an important market player, to compete with large agricultural companies and to consolidate ownership of small farmland plots is equally important.
We buy thousands of low-rent small plots from individual owners
We unite small plots into larger ones and negotiate considerably better rental conditions.
The value of larger plots with better rental yield is growing. Hence the value of your unvestment is growing too.
Establishment of the Czech Farmland Fund opens the possibility to invest into Czech farmland to broad public practically hassle-free.
At first look, the farmland investing appears to be simple. Buy a plot, rent it out and it is done. But one plot is not comparable to another, same as farmers are not comparable. Sooner or later, issues such as soil quality, erosion, legal risks, cadastral evidence, taxes, land reforms, subsidies surface.
Once the investor gets somehow familiar with it, the legislation can change. And a strong local market knowledge cannot be studied. That is why our investment is backed by a team that combines knowledge and practical experience of agronoms, lawayers, geodets, traders, pedologists, economs and tax specialists.
ESG – Český Fond SICAV Plc (the “Scheme”) declares that it does not consider the Principle Adverse Impacts (“PAIs”) of investment decisions on sustainability factors. Hence, with respect to its Sub-Fund, Český Fond Půdy/Czech Farmland Fund, the Scheme does not consider PAIs when taking investment decisions together with the impact these might have on the return it offers to its shareholders in relation to sustainability factors. This is mainly due to the fact that consideration of PAIs does not fit in with any of the current investment mandate of the Sub-Fund. The Scheme would like to point out that it does not intend to change this stance in the future, considering the mandate and the assets within its Sub-Fund.
SFDR Disclosures
| Fund name | Czech Farmland Fund |
| Investment horizont | 6 years plus |
| Fund size | > EUR 97 million. Fund is open to new investors. |
| Average yield from inception | 8,4 % p.a. |
| Average yield last 12 months | 5,9 % p.a. |
| Investment strategy | Highly conservative. Farmland ownership as main investment target. Focused on the highest quality Czech arable land, mainly black fertile soil in Elbe basin area. Experienced farmland management. Targeting premium yield from ownership and geographical unification. |
| Legal entity | Independent open mutual fund for qualified investors under the umbrella of Český fond SICAV Plc, a self-managed investment fund with variable capital |
| Securities | Freely transferrable bearer securities |
| Investment company | Český fond SICAV Plc, self-managed investment fund |
| Reguator | Maltese Financial Services Authority, Malta |
| Supervision | Conseq Investment Management, a.s. |
Current negotiating position of farmland owners is weak due to the lack of unity…
Czech agriculture was at a disadvantage before entering EU as subsidies in the EU were considerably higher…
The world is experiencing an unprecedented monetary experiment: central banks are inflating their balance sheets, more than half of eurozone bonds carry negative interest yield, prices of shares, commercial real estate and rentals has soared to the record levels…
Investing in farmland is suitable mainly for longterm, conservative investors. Those who invest in farmland often think in terms of owning an asset well into retirement and to pass such asset to their children or grandchildren through their inheritance. Farmland is a very stable investment that does not fluctuate in value.
Farmland, just as other real assets, is typically a very good protection against inflation as it grows in value along with the inflation. In this respect, farmland is totally different from bank deposits, bonds or shares. Especially in the worst case scenario of uncontrolled hyperinflation, farmland offers security. Even if the government crosses out three digits on banknotes and devaluates the currency, farmland is still there as mankind always needs food.
Rental yield on farmland purchased in the Fund is currently between 2%. Altogether we anticipate longterm return in the Fund in the region of 3-5% p.a.
One can invest in the Fund at any time. As the Fund is represented in the Czech market by Conseq Investment Management, you can buy shares of the Fund in the same fashion as shares of the other administrators which you can find on www.conseq.cz. Should you wish to terminate your investment the Fund will buy your shares back. Please be aware that this is a long-term investment, minimum of 6 years. As the Fund investor protection is paramount, there is a 20% early redemption fee calculated on current market value for withdrawals made within the first five years of the investment. After this five year initial period there is of course no redemption fee charged.