Barings Global Agriculture I

Global equity fund that invests in agricultural companies worldwide.

  • 322.30p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.94%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 09 April 2021

The fund seeks long-term growth in the value of assets, predominantly by investing in companies where the majority of earnings are derived from activities related to any commodities which are grown or raised. The manager takes a pragmatic view of the sector and will therefore closely monitor the performance relative to the benchmark. The managers time horizon is therefore shorter than many of his contemporaries as he seeks to capture the upside in significant market moves and attempting to limit the downside. Turnover will therefore be higher.

Fund summary

Sector Specialist
Structure OEIC
Launched March, 2010
Size £45m
Yield 0.80%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.94%

Allocation

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Investment process

Actively managed, following a Growth at a Reasonable Price investment philosophy. The manager focuses on companies & sectors with biggest potential for earnings surprise drawing on the full resources of Barings’ investment teams. The fund follows both a top down and bottom up process. Sector allocation will be determined across Agrichemicals, Fertiliser makers, Logistics companies, Food retailers, Seed manufacturers, Farming & related activities, Food wholesalers, Fishing & related activities. Screens are used to select stocks comprising both growth and value factors: •Growth - potential for growth surprise, Liquidity - ability to finance growth, Currency - •Sensitivity to currency movements, Management - Commitment to creditable strategy, •Valuations - Is the outlook reflected in prices? Technicals are used to implement and time the entry / exit of a position. Technicals used areSMA, RSI.

The typically short nature of an individual commodities cycle means that relatively aggressive sector positioning and high turnover should theoretically be an effective way to manage the fund. Since launch Blake has managed the fund impressively, in particular managing to capitalise on short term rallies in specific commodities.

Manager research

Average monthly relative returns

  • 16/17 -0.31%
  • 17/18 -0.49%
  • 18/19 -0.21%
  • 19/20 -0.80%
  • 20/21 1.31%

Bestinvest MRI

  • 3 years 0.10%
  • 5 years -0.10%
  • Career -0.23%
  • 3 years 66.30%
  • 5 years 46.80%
  • Career 28.10%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

James Govan

Track record

James Govan has 7.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.23%. During the worst period of relative performance (from December 2013 - June 2020) there was a decline of 35% relative to the index. The worst absolute loss has been 25%.

Periods of worst performance

Absolute -25.00% (July 2019 - March 2020)
Relative -35.00% (December 2013 - June 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 30 June 2020

8.82% Archer Daniels Midland Co
7.9% Corteva Inc
7.42% Nutrien Ltd
5.92% Tyson Foods Inc(Del)
5.03% Wilmar International Ltd
4.74% Fmc
4.62% Cf Industries Holdings Inc
4.22% Darling Ingredients Inc
4.01% Deere & Co
3.81% Tate & Lyle
Source: Trustnet

Sector breakdown

Chemicals 16.00%
Distributors 14.00%
Others 12.00%
Machinery 10.00%
Chemicals 9.00%
Foods 8.00%
Soft Commodities 8.00%
Chemicals 8.00%
Chemicals 7.00%
Foods 7.00%

Portfolio

40-70 holdings

Constraints

Primary investment universe: MSCI All Country World Index Target number of holdings: 40 – 70 holdings. Exposure limits Tracking error: 5% - 15% Sell discipline - 4 or 5 rated companies sold within 7 business days, or if a stock reaches valuation target, or if fundamental thesis changes.

Key Investor Information

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