Commodities  

Fund review: Agriculture steps out of its niche as world’s population keeps growing

Ms Macpherson says: “We view agricultural shares as attractively valued versus broader equity markets and believe the pick up in M&A in the sector over the past 12-18 months suggests others also see value.”

 

THE PICKS

Baring Global Agriculture

James Govan manages this £69m fund, which launched in January 2009. A sector breakdown reveals the fund has 16.5 per cent allocated to fertiliser companies and 16.5 per cent exposed to seeds and crop protection companies. By region, the portfolio’s largest allocation is to the US, which accounts for 36 per cent, while Canada makes up 19.7 per cent. Mr Govan has delivered a solid performance over one, three and five years, according to FE Analytics. In the three years to June 7, the fund generated a 29.8 per cent return. 

Pictet Agriculture 

This £168m fund invests in companies operating in the agribusiness value chain. Managers Gertjan Van Der Geer and Cédric Lecamp have 45.3 per cent allocated to the US, followed by 11.1 per cent of the portfolio in Japan. Among its largest holdings are Whole Foods Market and Deere & Co. FE Analytics shows the fund has outperformed the IA Specialist sector over one, three and five years. In the past five years to June 7, the fund delivered an impressive 65.3 per cent return. 

EDITOR’S PICK

Sarasin Food & Agriculture Opportunities  

Henry Boucher invests in food and agriculture companies across the world to achieve capital growth. The portfolio’s top three holdings at the end of April are Marine Harvest, Treasury Wine Estates and Leroy Seafood Group. A breakdown of its geographical allocation reveals the portfolio has 29.8 per cent in Europe ex UK, closely followed by North America, which accounts for 22.5 per cent. FE Analytics shows the fund has a strong record of outperformance. In the three years to June 7 it delivered a 45.8 per cent return.