News - Europe
Baring Asset Management is launching a Global Agriculture fund proving its belief in the long-term c...
Baring Asset Management is launching a Global Agriculture fund proving its belief in the long-term case for soft commodities.
The portfolio aims to provide long-term capital growth by investing in companies where the majority of earnings are derived from activities relating to agriculture or where they have the potential to benefit from this theme.
Barings says strong demand from emerging economies and supply side constraints will drive demand for commodities in the long-term, despite a 50% reduction in asset prices over the last two months.
The portfolio's manager Jonathan Blake says: "We believe the case for soft commodities has yet to play out, with agricultural commodities a particularly compelling story as global demand for food, feed and fuel consumption increases dramatically."
Barings does not anticipate any significant decline in demand for soft commodities due to the recessionary climate. Blake says food prices have exhibited historically low correlation levels with leading economic indicators and therefore offer diversification opportunities for investors.
The fund is a UK-domiciled Oeic and the offer period commenced today, Wednesday 14 January 2009.
Minimum investment is £2,000 and the annual management charge is 1.5%.
Updating your subscription status