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Bonnefield Financial

PRI reporting framework 2019

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

Other description (1) Bonnefield is committed to maintaining the long-term health of soil in its farmland investments. Bonnefield will not pursue investments which require extensive clearing of lands which have not previously been used in agriculture because we believe mature forests are important carbon sinks, provide erosion control.
Other description (2) Bonnefield approach is to align its investing activities with the best interests of Canadian farm families. Transactions are customized to fit the circumstances of the farm family (tenant) and are generally aimed at facilitating one or more of the farmer’s individual objectives including succession and financial health.

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Bonnefield is dedicated to preserving farmland for farming: to promote sound farmland management, help improve operator efficiencies and protect the integrity of farmland, which we believe are core to protecting and enhancing long term returns for our investors.

Objective: achieve stable, long term growth of capital and annual income by deploying capital in quality farmland that is leased to progressive farm farmers.

To that end, some of the elements included in our include the following:

Where permitted by law, we invest across Canada, not just in one particular region
We will not invest in land for purposes of commercial redevelopment or land banking
We may buy undervalued land to improve productivity
We may bring new farmland into production
We may buy smaller, inefficient plots of farmland and assemble them into larger more efficient farming units.
We may enter into a shared-risk leasing or financing arrangement with farmers: crop share or flex-lease arrangements
To manage risk, we delineate up to what percentage of capital would be invested in a given region, how much revenue would be derived from a given farmer, how much new farmland would be brought into production and how many of our agreements would include shared-risk financing arrangements.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Within the policy, we discuss our due diligence process that includes a detailed agronomic review and commissions an independent third-party farmland evaluation report.

While we do not dictate to our partners how to operate their farms, we are an active owner. Bonnefield Standards of Care (farming best practices) form a fundamental part of Bonnefield's leases. Each tenant is required to comply and report annually on the implementation of the Standards of Care. In addition to Bonnefield's internal review, an independent third-party agrologist also reviews this information. Bonnefield has adopted best practices for the governance of its funds, including investor advisory committees, semi-annual independent appraisals of all properties in its portfolios, the use of third-party payment certifiers for capital expenditures, detailed periodic reporting, independent audits of financial statements, and transparent disclosure policies.

From a social perspective, Bonnefield's founders realized that the long-term success of the company in the Canadian agricultural community would require alignment of its investing activities with the best interests of farm families and their communities.

Bonnefield has established a set of core operating principles:

we do not buy land for non-agricultural redevelopment;
our agronomic standards must balance exemplary farmland stewardship, sustainable farming practices and affordable farming operations;
we aspire to become a long-term partner with our Canadian farm operator clients;
our programs must assist Canadian farm operators to build or maintain scale, become more profitable, improve cash flow and/or reduce debt;
we will not dictate to our partners how to operate their farms; and
our farmland lease programs must create an "as if owned" relationship with the leased land for the farm operator.

 

 

01.6. Additional information [Optional].

          
        
I confirm I have read and understood the Accountability tab for SG 01 I confirm I have read and understood the Accountability tab for SG 01

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

URL/Attachment

02.3. Additional information [Optional].

We do not publicly disclose our investment policy documents (confidential to the Limited Partnership and found within the offering memorandums), we do disclose our overall approach via our website and we have published our responsible investing policy. https://bonnefield.com/wp-content/uploads/2018/03/Bonnefield_responsible-investing-policy.pdf

 


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Bonnefield's policy for managing potential conflicts of interest is covered in great detail in the Limited Partnership agreements. Essentially, all funds have investor advisory committees who, among other tasks, are mandated to confirm any matter that may give rise to a conflict of interest. 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

Three property managers worked directly with the 100 farm families (tenants) within our portfolio. At any point, the farm family can reach out directly to a property manager who assesses the situation and and takes appropriate action.


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