Castlestone Management has announced it is to launch an agricultural commodities fund on 31 March.
The Aliquot Agriculture fund will be actively managed, and will offer investors discrete exposure to the agricultural commodities sector via a mirror of the agricultural selection made within the established Aliquot Commodity fund.
The fund’s holdings will encompass agriculture, alternative energy and water assets. The bulk of the portfolio (60%) is anticipated to be in grains and foodstuffs, though there will also be a livestock weighting of about 12% to reflect the growing appetite for meat among fast-growing nations such as China.
Castlestone says the fund will be the only open agriculture fund in Europe, following the hard closure of Schroders’ Agriculture fund, which attracted a further $1.8bn of assets following its soft closure at $3.6bn in January.
“Agricultural commodities are an essential growth engine in a well-balanced portfolio,” said Angus Murray, founder and managing principal of Castlestone Management. “This is an asset class with the potential to offer excellent returns to investors.”
The fund is domiciled in the British Virgin Islands and will be available for sale through IFAs and insurance platforms with a minimum investment of $10,000 or the platform minimum. There is no annual management fee but a 15% performance fee will apply on outperformance.
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