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The Duxton Group

Duxton is an alternative asset management firm focusing on specialist investment opportunities for institutional, semi-institutional and high net-worth investors.

The Duxton “group” includes Duxton Capital (Australia), based in Australia and Duxton Asset Management, in Singapore.

Duxton specialises in global agricultural land and securities as well as Asian emerging markets.

Duxton's History

2007

The investment team and its principals, as former employees of the Deutsche Bank Group, began developing and executing its agricultural and alternative assets strategy.

2009

Founded in 2009 following a spin-out from Deutsche Bank, Duxton Asset Management was established as an alternative asset management firm focusing on specialist investment opportunities for institutional, semi-institutional and high net-worth investors.

The Duxton Group is majority owned by employees of the company.

2012

Duxton Capital Advisors GmbH was incorporated in March 2012 and provides advisory services to Duxton on structuring of products for its clients in Europe and the MENA region.

2013

Duxton Capital (Australia) was established in June 2013 as the Australian arm of the Duxton Group, providing bespoke investment solutions and services to the requirements of Duxton‘s target clients in Australia and New Zealand.

2014

Duxton Capital (Australia) received its AFSL in February 2014.

Duxton expanded its service offerings into bespoke agricultural advisory services.

2015

Duxton expanded its service offerings to include a series of Australian domiciled private companies for family offices investing into specific single commodity opportunities.

2016

Duxton Capital (Australia)’s AFSL was amended to allow Duxton to deal in financial products in Australia.

Duxton Capital (Australia) successfully launched the first pure water stock on the ASX via an IPO.

2017

Scott Jaffray announced as an equity partner in
the Duxton Group and CIO.

2018

Duxton Capital (Australia) successfully launched the Duxton Broadacre Farm stock on the ASX via an IPO.

Duxton Capital (Australia) awarded first Australian institutional mandate.

Us, ours, we. That is what we stand for. In this firm, our clients come first, our staff come second, and the business does very well out of that.

~ Ed Peter, Chairman

Executive Management

Ed Peter

Chairman

Previous Experience:

Managing Director and Head of Deutsche Asset Management (Asia Pac)

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Head of Asian and Emerging Market Equities, Deutsche Bank

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Head of Global Equities (Asia and Australia), Deutsche Bank

Stephen Duerden

CEO (Australia)

Previous Experience:

COO, Complex Asset Investments and Singapore Operations, Deutsche Asset Management (Asia Pac)

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Director of Operations, Deutsche Asset Management

Scott Jaffray

Group CIO

Previous Experience:

Managing Director and CIO of Deutsche Asset Management (Asia Pac)

• • • • • • • • • • • • • •

Board Director of Pictet Asset Management (UK)

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Head of European Equity AVIVA plc

Scott Weldon

CEO (Singapore)

Previous Experience:

Financial Analyst, Bank Vontobel (Switzerland)

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Financial Analyst, Deutsche Bank (France)

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Consultant and Actuary, Watson Wyatt (USA)

Investment Philosophy

Duxton’s investment philosophy is to identify and capitalise on macroeconomic themes through active management. Duxton believes that agriculture acts as an effective hedge to inflation. As we are late in the global economic cycle, it is an undervalued defensive sector that has substantial upside.

With a rapidly growing global population, we will see a huge increasing demand for food and thus agricultural land. Coarse grains and other cereals, oil seeds and sugar can also be utilised to produce bio-fuels. Rising energy prices and the need to reduce greenhouse emissions are creating additional demand for these commodities and demands on agricultural land.

Further, Duxton believes rising average income and changes in consumer tastes in developing countries are also expected to increase demand for food and fibre. All of the above present a strong thematic opportunity for investing into agriculture.

Duxton as a boutique active manager invests into these agricultural opportunities by use of a top down and bottom up investment philosophy, actively timing investments into a project at the appropriate point in the commodity cycle after extensive due diligence. Duxton then actively manages and monitors the investment with a focus on balance sheet management.

At the mandate level an emphasis is placed on diversification to manage risk and assist in generating an income stream. Diversification is across three vectors - geographical exposure, commodity exposure and management. We believe this minimises two of the more significant risks in investing in agriculture – weather risk and commodity price fluctuation.

Investment Approach

Duxton aims to derive benefit for investors, in terms of both capital growth and a steady yield, through the systematic shift in soft commodity prices, and through investment in farmland and on-farm efficiency measures.

Duxton differs from many other investors in its approach to agriculture. The central premise to its investing is keeping low gearing in its projects, as well as diversification across geographies, commodities, farm management styles and investment time horizons.

Duxton then works with its managers to add value through optimising farming systems, efficient human capital, increasing yield through the latest farm technologies, adopting large-scale production systems to realise economies-of-scale and by forging strong relationships with local end-users to develop direct customer relationships.

Duxton Water Limited is Australia’s only listed vehicle providing investors with direct exposure to the Australian water market.

Through ownership and active management of a diversified portfolio of water assets, Duxton Water provides irrigators with a range of water supply solutions and resource risk management tools.

Structural shifts in productive demand for water, combined with the cap on supply, suggests water entitlements may experience further appreciation in value.

With the active management approach taken by Duxton Water, the company expects to provide investors with a bi-annual dividend and exposure to capital growth through the appreciation in value of the underlying water assets.

Why Agriculture

Agricultural investment has strong fundamentals driven by global supply and demand dynamics.

There are estimated to be 91 million additional people to feed each year, with the population forecast to increase 2.1 billion to reach 9.8 billion people by 2050*

As GDP per capita and incomes rise in emerging markets, people consume higher value foods, such as meat and dairy, as they become wealthier

* Population Reference Bureau, 2018, World Population Data Sheet

This pressure on global food supply is amplified, as unplanned urbanisation causes a global degradation of arable land per capita.

The amount of arable land per person more than halved since 1960, and the FAO estimates that by 2050 arable land will decrease to just 0.17ha per capita.

With less available land, there is less production, and with the rising middle class and growing population, we believe there will be upward pressure on both land and commodity prices. Additional factors such as reduced water supply, farm management constraints, and limitations of transport and logistics will also contribute to an increasingly constrained supply of food. This fundamental imbalance between global agriculture supply and food demand, will create a unique opportunity for investment in this sector.

Sustainability

Duxton is committed to sustainable agriculture investments to create value within our businesses.

We see value generated in businesses that have sound sustainability principles at the core of their operations, helping to lessen the risks associated with investing in agricultural businesses.

We believe sustainability is not solely control or compliance considerations at Duxton. They are key commercial risks and opportunities which see value generated in its investment and hence overall investor returns.

Duxton is committed to improve and continue sustainable farming practices, placing value on environmental preservation for future generations. We adopt farming systems aimed at improving soil health and increasing biodiversity of animals and micro-organisms.

The Duxton Team

Duxton provides a collaborative team environment that promotes a dynamic and innovative culture. This assists our staff in developing, both personally and professionally. This philosophy gets the best out of our staff and in turn, helps to achieve the greatest result for Duxton and our investors.

The Duxton Group has over 50 staff across our Singapore and Australia offices. Across the globe, our investment team has an average of 13 years experience, with 228 years of total combined experience.

Australia

SENIOR MANAGEMENT
INVESTMENT TEAM
BUSINESS DEVELOPMENT & RELATIONSHIP MANAGEMENT
LEGAL, GOVERNANCE & REPORTING
FINANCE
OFFICE & HR MANAGEMENT

Duxton Asset Management Pte Ltd is regulated by the Monetary Authority of Singapore as a holder of a Capital Market Services License and is authorised to conduct fund management activities for accredited and institutional investors.

Duxton Capital (Australia) Pty Ltd ABN 87 164 225 647, AFSL 450218
© 2020 Duxton Asset Management Pte Ltd and Duxton Capital (Australia) Pty Ltd. All rights reserved.