GLOBAL investment firm, Baring Asset Management, has launched an agriculture investment fund in response to growing interest in the sector from its clients, a fund manager says.
Jonathan Blake said the fund would invest in "companies that are involved in agriculture from farm to fork.”
Baring hopes to raise up to GBP1 billion (A$2.2 billion) investment in the fund. The fundraising period ends today.
Baring already has a resources fund, which invests in energy, metals and agriculture, but decided to launch an agriculture-specific fund after increasing its allocation to that sector as food investment came to the fore, said Blake.
The agricultural sector is expected to have a brighter outlook than energy and metals in the short term, as its demand usually follows population growth, rather than economic cycles.
Companies the fund is investing in include agricultural group Monsanto Co. and fertilizer producer Potash Corp. Blake said anything from seed producers and grain handlers, to food manufacturers and retailers, could provide investment opportunities.
