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Barings Global Agriculture Fund

NAV
as of 18/07/2019
GBP 2.367

Fund Facts

Fund Type UCITS
Domicile UK
Umbrella Barings Investment Umbrella Fund
Asset Class Equity

Share Class Info

Share Class Class A GBP Acc
ISIN GB00B3B9V927
Currency GBP
Accumulating / Distributing Accumulative
Share Class Inception Date 16/01/2009

Why agriculture?

The investment case for agriculture is exciting and continues to be driven by sustainable global demand on one side and the instability and inadequacy of supply on the other. We believe that the business of feeding the world merits consideration for any well diversified, long-term investment portfolio.

Summary fund objective

The investment objective of the Fund is to achieve long-term capital growth by investing in the agricultural sector.

The Fund will seek to achieve its investment objective by investing at least 70% of its total assets directly and indirectly in equities and equity-related securities in any company, including those in developed and emerging markets, where the majority of earnings of issuers or holding companies are derived from activities related to any commodities which are grown or raised, commonly known as agricultural or soft commodities.

These companies are likely to encompass, without being limited to: fertiliser, agricultural machinery, animal feed, seed and crop protection manufacturers, agricultural producers including farms, plantations and aquaculture, crop processors, grain and edible oil handlers and distributors, timber, pulp and paper, food ingredient companies, food manufacturers and food retailers.

For the remainder of its total assets, the Fund may invest outside of the agricultural sector, as well as in fixed income and cash.

While the Fund will aim to diversify its investments, allocation to certain countries may be more than 30% of its total assets depending on the Investment Manager’s assessment at different times.

In order to implement the investment policy, the Fund may gain exposure through American depositary receipts, global depositary receipts and other equity related securities including participation notes, structured notes, equity-linked notes and debt securities convertible into equities. The Fund may also invest in collective investment schemes and other transferable securities. It may also use derivatives including futures, options, swaps, warrants and forward contracts for efficient portfolio management and for investment purposes.

Why now?

Well supported commodity prices have improved farming economics and provided a strong incentive for farmers to maximise output. We believe that this will continue to have positive implications on a number of sub-sectors such as agrochemicals, agricultural machinery and grain handling and processing services. As such, we expect to see robust investment into areas such as agrochemicals and agricultural machinery over the coming months.

Outside of these markets, we are also seeing growing interest in alternative energy sources such as biofuels, where agricultural products are the main inputs.

Why Barings?

The Barings Global Agriculture Fund is able to invest ‘from farm to fork’ - in any company where the majority of earnings are derived from activities related to agriculture and soft commodities. This flexibility means that the Fund does not need to rely on rising commodity prices to add value and through identifying suitable companies has the potential to perform well across a range of market conditions. 

The information available on this website is not an offer to sell or an invitation to apply for this product and is by way of information only, nor is the information available on this website intended as an offering of this product to US Persons. Depending on your jurisdiction, you may not have access to this product. Individual investors should contact their financial advisor before investing in this product. The Key Investor Information Document (KIID), if applicable, must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information available on this website does not constitute investment, tax, legal or other advice or recommendation.

Portfolio Managers

James Govan, CFA

James Govan, CFA

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