Julius Baer launches agricultural fund
Julius Baer, the Swiss private bank, is launching an agricultural and commodities fund in the UK, as the bank sees surging demand for products related to food, fertilisers and biofuels.
The Zurich-based bank said agriculture sector offers a compelling buying opportunity - many stocks are significantly undervalued when taking into account the expected growth estimations for the industry. The target allocation of the fund is 75% equities and 25% commodity securities and indices. The combination of agricultural equities and commodity exposure provides additional diversification benefits.
The fund 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.
Sabre Mayhugh said: “The increased demand for grain, meat products, fertiliser and biofuels, largely as a result of a higher standard of living in the developing countries, makes a convincing argument for investing in the agriculture sector, especially at current prices."
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