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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.

Duxton specialises in agriculture, hospitality and equities.

Duxton's History

2009

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

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

2013

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

2014

Duxton Capital (Australia) received its AFSL and expanded its offerings into bespoke agricultural advisory services.

In 2015, Duxton further expanded its offerings to include a series of Australian domiciled private companies, providing wholesale investors with exposure to specific single commodity opportunities.

2016

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

Duxton Capital (Australia) successfully launched Duxton Water (D20), the first pure water business on the ASX, via an IPO.

2018

Duxton Capital (Australia) successfully launched Duxton Broadacre Farms (DBF) on the ASX via an IPO.

Duxton Capital (Australia) awarded first Australian institutional mandate.

2019

Duxton's largest private equity project, Duxton Vineyards, becomes a fully vertically integrated wine business.

2020

Duxton Capital (Australia) launched its first hospitality offering, Duxton Pubs.

Duxton Capital (Australia) launched Duxton Bees, a commercial apiary business.

2021

Simon Stone appointed as Chief Operating Officer.

Duxton Capital (Australia) successfully launched Duxton Diversified Agriculture Fund.

2022

Duxton Capital (Australia) successfully launched Duxton Water Fund.

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

Simon Stone

COO

Previous Experience:

Bank SA’s Chief General Manager of Banking Operations, Head of Retail, Financial Services and Strategic Planning

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Director and Finance/Audit/Risk Committee Chair of Webster Ltd

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Managing Director of the SA Aquaculture Management Group

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 and is uncorrelated to traditional asset classes. 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 significant increases in demand for food and thus agricultural land. Coarse grains and other cereals, oil seeds and sugar can also be used to produce biofuels. Rising energy prices and the global effort to reduce GHG emissions is placing further pressure on these commodities and agricultural land.

In addition, Duxton believes rising average income and changes in consumer preferences 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 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 create value for investors, in terms of both capital growth and sustainable yields, through the systematic shift in soft commodity prices, and 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, implementing 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 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 over time.

With the active management approach taken by Duxton Water, the company expects to provide investors with a bi-annual dividends 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 choose to consume higher value foods, such as meat and dairy products

* 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 agricultural investments, taking the view that sustainability is instrumental in creating value within our businesses.

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

Sustainability goes beyond control or compliance. They are key commercial risks than can be managed, and opportunities which generate value when invested in. Our belief is that the sustainability of our businesses is directly related to their investment outcomes.

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 60 staff across all teams. Our investment team has an average of 12 years experience, with 200+ years of combined experience.

Australia

SENIOR MANAGEMENT
INVESTMENT TEAM
ESG & SUSTAINABILITY
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
© 2022 Duxton Asset Management Pte Ltd and Duxton Capital (Australia) Pty Ltd. All rights reserved.