Portfolio Construction Using Canadian Farmland Allocations

Highlights reveal the following based on a 30-year analysis of Canadian farmland performance:

• Farmland holdings would have improved the financial performance of the typical investment portfolio;
• The realized volatility of farmland over this period was lower than stocks;
• The realized return on farmland over this period was greater than bonds;
• Farmland provided a low correlation to traditional financial asset returns;
• Domestic institutional investors are under-invested in farmland relative to efficient frontier analysis.

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