This report analyzes the Information Ratio of Veripath Partners’ Canadian farmland portfolio from Q2 2008 through Q1 2026. The Information Ratio measures excess return relative to tracking error, helping investors evaluate whether performance reflects a consistent pattern or random variation.
The analysis compares Veripath’s quarterly gross returns against five benchmarks: Canadian CPI inflation, 91-day Treasury bills, the FTSE Canada Universe Bond Index, the S&P/TSX 60, and the S&P 500. Over the 72-quarter period, the portfolio produced strong Information Ratios relative to inflation, T-bills, and Canadian bonds.
The paper also evaluates Sharpe Ratios, Sortino Ratios, drawdowns, and correlation structures. Veripath’s farmland returns showed near-zero correlation to equities and inflation over the measurement period, supporting the diversification characteristics of Canadian farmland within multi-asset portfolios.
Additional sections examine appraisal smoothing and desmoothed volatility assumptions using both internal adjustments and Farm Credit Canada transaction-based volatility data.
The report concludes that Veripath’s historical excess returns versus inflation, cash, and bonds were statistically significant over the period analyzed, while comparisons against public equities reflected the higher volatility of equity benchmarks.