Pictet Funds' Agriculture vehicle will launch with a heavy bias towards mid-cap stocks in farming com...
Pictet Funds' Agriculture vehicle will launch with a heavy bias towards mid-cap stocks in farming companies, above those supplying the industry, according to its manager.
The Sicav, which aims to invest in sustainable agriculture equities, launches on 29 May with a UK distributor status and a sterling share class.
The long-only fund will hold between 45 and 75 stocks at launch, drawn from a universe of around 280 companies, vetted for their financial and environmental suitability.
Manager Gertjan van der Geer says he will not comment on specifics of the at-launch portfolio, saying only he prefers the valuations on stocks in farms themselves over companies providing things like machinery and fertiliser, or transporting agricultural produce.
He also says the product will be 85% invested in mid-cap stocks with holdings in North and South America, Australasia, Europe the Middle East and Asia.
The socially responsible investment remit is to judge companies on their production efficiency, with a view to increasing agricultural yields. At least 50% of their business must be agricultural goods or services.
The potential stock universe is split 53%, 44% and 3% between large, mid to small and micro caps, with almost 40% of the companies North American and a little fewer than 30% each in Australasia and Emea.
Despite the portfolio bias, farms make up just 20% of the universe, with suppliers at 36% and other businesses' supplying services like irrigation and waste disposal 44%.
But van de Geer insists he will not seek to track the weightings of stocks available to him and the fund's benchmark is the MCI World Index.
PF Agriculture is Pictet's fourth in an approximately €7bn global resources Sicav range, adding to Water, Clean Energy and Timber.
Its subscription period runs from 18-27 May and its first Nav will be published on 29 June.
