UK investment company launches global agriculture fund

Baring Asset Management (BAM) has launched a global agriculture fund in response to growing interest in the sector from its clients, said fund manager Jonathan Blake.

Blake said the fund will invest in "companies that are involved in agriculture from farm to fork".

He said the company 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.

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 fertiliser producer Potash Corp.

Blake said anything from seed producers and grain handlers, to food manufacturers and retailers, could provide investment opportunities.

The company hopes to raise up to GBP1 billion (US$1.46 million) of investments in the fund.