Swiss wealth manager Julius Baer will launch a fund dedicated to investments in agriculture equities and commodities in the UK market.
The Julius Baer Agriculture fund targets long-term capital growth by investing in a portfolio of companies and commodity indices expec6ed to benefit from the surging global demand for agricultural products and related services such as food, fertilisers and biofuels.
The agriculture sector offers a "compelling buying opportunity" with many stocks undervalued taking into account expected growth estimations for the industry, says the firm.
The fund's target allocation is 75% equities and 25% commodity securities and indices, providing additional diversification.
It is co-managed by Sabre Mayhugh and Belinda Cavazos of Wellington Management Company, the external fund manager which manages approximately $1bn in dedicated agriculture portfolios.
"A rising global population, climate change and a reduction in arable land has created a bottleneck in the agricultural sector and related industries," says Mayhugh.
"As a result a premium value will be assigned to those companies that can increase the agricultural yield of the world's finite resources. Our bottom-up stock selection and fundamental research is designed to highlight these investment opportunities," Mayhugh adds.
The Luxembourg-domiciled fund was originally launched on 31 June 2008.
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