Vermont Pension Investment Committee has made a $35m (€33.6m) commitment to a US fund managed by Farmland Fund.
Vermont Pension disclosed in a board meeting document that it had placed the capital into the US Agriculture Core Farmland Fund, a commitment that diversifies the pension fund’s agricultural portfolio and supports its 2% farmland allocation target.
Launched in 2017, the core open-ended fund holds 18 assets valued at approximately $190m as of September 2024.
It has outperformed its benchmark, the NCREIF Total Farmland Index, by 120 basis points since inception, achieving a 9% annualised net total return.
According to RVK, the pension fund’s investment consultant, this investment offers a compelling opportunity for exposure to stable real assets with attractive income generation and inflation-hedging characteristics.
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