Browse CFA Level 1

Chapter 5: Natural Resources

In this section

  • Timberland, Farmland, and Raw Land
    A broad overview of timberland, farmland, and raw land investments, including income generation, risk management, ESG considerations, and best practices for alternative portfolios.
  • Commodities and Commodity Derivatives
    Explore core principles of commodities, their unique price drivers, and how derivatives serve as powerful tools for hedging, speculation, and portfolio diversification.
  • Risk Factors and Portfolio Diversification
    A detailed look at the complexities of natural resource investments—exploring key risk factors, diversification benefits, and tools for managing extreme events.
  • Environmental and Social Considerations
    Explore how ESG factors, community engagement, and environmental stewardship shape natural resource investments, highlighting best practices, frameworks, and risk mitigation strategies.
  • Commodity Curve Dynamics and Storage
    Explore how supply-demand imbalances, cost of carry, and convenience yields shape commodity forward curves, with insights on storage strategies, contango, backwardation, and real-world hedging applications.
  • Commodity-Based Investment Vehicles
    Explore diverse commodity-based investment vehicles, covering physical- and futures-backed funds, regulatory frameworks, performance differences, and best practices, with practical insights for CFA candidates.
  • Ancillary Revenues in Farmland and Timberland
    Explore diverse income sources beyond primary crops or timber sales, including hunting leases, carbon credits, biomass energy, agritourism, and secondary niche markets. Learn how these ancillary revenues can expand portfolio returns while aligning with sustainability objectives.
  • Global Regulatory Landscape and Sustainability
    Explore how global treaties, national regulations, and evolving sustainability frameworks impact the natural resource sector, shaping responsible strategies and investment flows.
  • Water Rights and Sustainability Initiatives
    An in-depth exploration of water rights frameworks, investment considerations, and sustainable practices in managing one of the world's most crucial natural resources.
  • Weather Derivatives and Insurance Instruments
    Explore how weather derivatives and parametric insurance protect businesses against climate and weather risks. Learn about major users, underwriting processes, reinsurance markets, and regulatory considerations.
  • Specialized Crops and Agribusiness Value Chains
    Dive into the diverse world of specialty crops—from organic produce to medicinal plants—and explore how agribusiness value chains create investment opportunities and risk mitigation strategies in alternative portfolios.
  • Alternative Fuels and Renewable Energy Sources
    Explore the evolving landscape of alternative fuels and renewable energy sources, including biofuels and hydrogen, their production processes, government incentives, sustainability considerations, and investment structures.
  • Volatility and Hedging in Resource Extraction
    Explore high-impact price volatility in extractive industries and discover best-practice hedging strategies for stabilizing cash flows in energy and mining operations.
  • Cross-Border Logistics and Transportation Risks
    Explore how cross-border shipping, port disruptions, freight costs, political instability, and insurance shape commodity supply chains and perishable goods movement.
  • Philanthropic Land Ownership Models
    Explore how philanthropic organizations and donors utilize land trusts, easements, and mission-oriented financing to safeguard ecosystems, foster sustainable community development, and achieve social impact goals.
  • Data-Driven Approaches to Yield Enhancement
    Explore how big data, machine learning, remote sensing, and blockchain traceability fuel precision agriculture and enhance timber productivity, with practical strategies and cautionary insights for CFA Level I candidates in alternative investments.
Wednesday, April 9, 2025 Monday, January 1, 1

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