W&F Q3 2022

www.wealthandfinance-news.com 6 Wealth & Finance International - Q3 2022 Turning The Bear Into A Bull Sustainably When market trends go south, and investors must make a choice, it is more common than not that their ethical pledges go out the window. It’s in the hard times that you can see who truly believes in their investment philosophies, and Asymmetrica Investments is one to prove that sustainable investments and positive returns go hand in hand when it comes to long-term profitability with agricultural assets. Sustainability is a word which has become highly valued in all circles. As we look for ways to help preserve our planet, it’s essential to consider how we use our natural resources. Conserving our natural resources has become a priority for many individuals, companies, and even entire nations, and billions of dollars have been pledged to Sustainable Development Goals (SDGs) created by the United Nations. When we think of environmental footprint, agriculture is one of the most overlooked, misunderstood, and underutilised resources to live more sustainably. With half of the world’s habitable land used for this purpose, it is there that the team from Asymmetrica Investments comes in with sustainable methods to supply food for our growing population. Having achieved remarkable success in the Ethical Finance Awards from Wealth and Finance International, where the firm was named Best Agricultural Impact Investment Firm 2022, we thought it was the right time to talk to the team to uncover how they earned such a remarkable accolade. 1. Firstly, please give us an overview of your company and your work. Asymmetrica Investments is a Swiss company that specialises in investments in sustainable agricultural assets. Currently, the firm is the advisor to the world’s first investment vehicle specialised in sustainable avocado production, AVO Oro Verde. Before Avo Oro Verde, investments in Avocado Orchards in Mexico were hardly accessible for anyone outside the avocado industry. Most of the time, only local growers or existing avocado companies could benefit from the expanding avocado industry in Mexico. Every year, avocado consumers worldwide would see an increase in the prices of avocados or avocado farms without being able to join this enterprise effectively. People could only invest in listed global companies like Calavo Growers or Mission Produce. These investments do not Jun22038 resemble farmland ownership, as they generate most of their income from trading, not the avocados’ production. In AVO Oro Verde, investors are acquiring real estate, specifically arable land that produces income. So, their investments are backed by tangible assets, in this case, avocado orchards. In general, Farmland investments have two advantages. The first is that investors receive an income from the sale of the avocados, and the second is that the land they acquire appreciates due to inflation. By investing in an avocado orchard, investors can reasonably expect to benefit from the rise in the prices of avocados. Specifically, an investment in an avocado orchard increases in value as the cost of avocados rises because growers can sell their product at a higher price. On the contrary, generally, when avocado prices increase, companies like Calavo Growers or Mission Produce have lower profitability; this change in profitability usually reflects a lower share price. The main reason is that the margins and profitability of companies shrink when there is a rise in their input prices. In 2019 AVO Oro Verde came up with a solution that enabled the global audience to invest in avocado orchards. Because of that, Mexicans and foreigners can now invest in sustainable avocado orchards in Mexico. 2. How can avocado orchards be sustainable? Agriculture is not intrinsically unsustainable but often poorly managed. For instance, more than 95% of all day workers in agriculture do not have a pension or any access to health care insurance. Not having these benefits is the reality for more than 5 million people in Mexico. People are at the heart of any organisation, and we encourage our partners to insure their workers and their families under state-run insurance. Moreover, we also support using organic pesticides to have better food and protect our employees from chemicals. Regarding avocados, a lot has been said about their lack of sustainability. However, like most agricultural products, avocados are not intrinsically unsustainable, but their poor management is untenable. The problem with avocados starts when producers cultivate avocados in nonsensical places, such as where the irrigation process is not based on rainwater or natural moisture in the soil. In some areas where water can be privatised, it depletes the water reservoirs, affecting the surrounding communities and plantations. Significant changes can be done by having a When we think of environmental footprint, agriculture is one of the most overlooked, misunderstood, and underutilised resources to live more sustainably. With half of the world’s habitable land used for this purpose, it is there that the team from Asymmetrica Investments comes in with sustainable methods to supply food for our growing population.

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