18 Mar, 2008
David Campbell | 00:01:00 | 18 March 2008
Allianz RCM is to launch a global soft
commodities fund in an attempt to capitalise on rising
international demand and pricing for foodstuffs.
The fund will invest in equities across the agricultural supply
and distribution chain with 50% of holdings in the US, 25% in
Europe and 25% in Asia and emerging markets.
The Luxembourg-domiciled fund will be managed by Bryan Agbabian
from RCM's US office. He will run a portfolio between 30 and 80
Soft commodity prices have grown exponentially in the past year
with wheat prices rising up to 70% during 2007 due to higher demand
and increasing competition for land use.
'We are seeing rising demand for protein rich diets across the
developing world alongside increasing prosperity,' said Nick Smith,
head of retail sales and marketing at Allianz.
The fund will also be authorised to invest in biofuel producers.
The fund will launch on 1 April with an initial 5% charge and an
annual fee of 1.75%.