Rest expands impact and alternative allocations with investment in Cibus Fund II

Rest, one of Australia's largest profit-to-member superannuation funds, has expanded its impact investment and strategic alternatives allocations through an investment in the agriculture-focused Cibus Fund II.

The fund, advised by Cibus Capital LLP, focusses on delivering strong returns through investment opportunities related to the food value chain.

Sustainable food production and agriculture practices offer significant value potential to Rest members and are essential for the global transition to net zero, said Rest’s Head of Responsible Investment & Sustainability, Leilani Weier.

“Through our investment in Cibus Fund II Rest is growing its exposure to the dynamic and sustainable future of agriculture.

“We expect this investment will generate exposure to mid-market agriculture companies that own real assets with profit generating potential. This will bring diversity benefits to our alternatives portfolio, while delivering long-term value for our members.”

The investment is the first impact investment within Rest’s alternative asset class and brings Rest closer to its target of achieving a one per cent allocation to impact investments across its total portfolio by 2026, says Weier.

“As a super fund representing one in five young Australians, we believe impact investing represents a powerful opportunity for us to grow our members’ super, while helping to build a more sustainable future.

“The allocation provides exposure to initiatives at the forefront of modern agriculture and opportunities that address the growing need for environmental plantings and natural assets.”

“Cibus is delighted to partner with Rest, who has shown leadership by channeling capital towards companies who are shaping the future of food,” said Rob Appleby, Chief Investment Officer of Cibus Capital.

“By combining commercial logic, technology and sustainable outcomes to each investment we make, we have demonstrated that the industry can produce healthier food, use resources more efficiently and meet its nature-based target.”

Examples of Cibus Fund II investments:

1. A state-of-the art glasshouse tomato producer undertaking work expected to form the basis for a platform focused on the production of year-round produce in renewable energy powered facilities.
2. A major producer and supplier of vegetable seedlings to growers across Eastern Australia pursuing plans to create more efficient and sustainable water and waste management practices through automation and robotics. It is also targeting environmental planting opportunities in Australia.

Cibus Fund II is Rest’s third impact investment, following Rest’s capital commitments to the Palisade Impact Fund and specialist private equity firm ARCHIMED, all of which have been assessed under Rest's impact investment framework.