Fedgroup’s world-first sustainable Impact Farming investment vehicle yields positive returns
Impact Farming, launched by financial services provider Fedgroup, has shown the results it promised when it launched three years ago. Across all the assets, the average returns achieved in the first three years are in line with initial projections and Fedgroup is confident that the internal rate of return targets of 10% over the lifetime of the assets will be met.
Impact Farming initially provided consumers with the opportunity to make a once-off investment in a blueberry bush, beehive or solar panel on a sustainable farm and earn income from a portion of the sale of the harvest. The world's first product suite of its kind was launched in August 2018 and is available on the Fedgroup App.
To date over 13 600 investors have been reaping the rewards from 350 000 blueberry bushes, 6 500 beehives and 19 500 solar panels.
The hands-on approach from the financial services provider in every aspect of building the model has placed it in the position where it is now able to significantly scale its offerings.
“We have been fastidious in working through every detail when creating the model, including due diligence on the farms,” says Grant Field, CEO, Fedgroup, “we have put our own money into the products and have paid our school fees to improve the model”.
“We have just launched the opportunity for investors to invest in moringa and macadamia trees,” says Field, “and more products are in the pipeline”. Tranches of additional moringa trees and mature macadamia trees are secured and scheduled to be released to meet demand.
Field says that this provides investors with a greater range of assets to invest in and will also ensure that at least three to four assets will be available on the platform at any given time to give investors choice.
The company currently has an estimated 400 000 blueberry bushes in the growth phase and additional beehives have been secured. These will be placed on the platform once successfully swarmed.
Solar panels are the most popular asset so far, and with demand outstripping supply, Fedgroup has responded by placing newer generation panels on the App. “While this increases the upfront investment cost, it also increases the potential return,” says Field. Larger panels allow for a higher yield of power.
The Fedgroup App is available on Google Play and App Store.