Sarasin Food and Agriculture Opportunities P

Growth fund invested in agricultural sector around the globe.

  • 200.50p
    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.

  • 231.00p
    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).

  • 0.99%
    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.

  • 1.10%
    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 01 March 2021

The fund manager takes a very long term view on the sector and is seeking to invest in stocks that will significantly out perform others in the sector on a 3 or 5 year basis or perhaps longer. The objective to achieve capital appreciation over the long term. The manager takes little notice of the benchmark when making investment decisions. The exposure to Emerging Markets is therefore normally considerably much higher than his peers.

Fund summary

Sector Specialist
Structure OEIC
Launched October, 2012
Size £325m
Yield 1.10%
Charging basis Capital
Dividends paid 28 Feb, 31 Aug

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 0.99%

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Investment process

The manager will identify major themes that are likely to persist for at least 18 months and then look for companies that are the most geared into this. This tends to mean focusing on the lowest cost producers who have pricing power in their local markets or in the case of Agribusiness for example, companies that produce technology that is market leading. This comparative advantage must constantly be sustained and improved upon: this is one aspect that the manager focuses on specifically. In identifying these long term trends the manager is fortunate to have access to research conducted by Radobank which is currently the only remaining AAA rated bank worldwide due to the fact that they are the worlds biggest commercial agriculture investors. Boucher also has a very broad investment opportunities spectrum which includes healthcare. An example of an investment in this area might be the combat of obesity or diabetes.

Given the long term nature of the changes in the sector driven demographic changes taking a long term approach to the sector has much to commend it. Agricultural indices tend to have a high percentage of US stocks so the focus on emerging markets means that they are of no relevance to this fund. Despite this Bouchers performance is in line with the sector since launch.

Manager research

Average monthly relative returns

  • 16/17 0.32%
  • 17/18 0.18%
  • 18/19 0.21%
  • 19/20 -1.13%
  • 20/21 0.06%

Bestinvest MRI

  • 3 years -0.29%
  • 5 years -0.07%
  • Career -0.28%
  • 3 years 24.80%
  • 5 years 51.60%
  • Career 14.90%

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

Henry Boucher

Boucher started his career in finance in 1983. He has managed a wide variety of funds, including unit trusts, pensions, life funds and charities. He is also a co-author of the Sarasin Compendium of Investment for Charities, a reference book for trustees published annually, which covers all the major asset classes and is designed to put investment trends in a longer-term context. Henry is responsible for Sustainable Investment at Sarasin & Partners and for the AgriSar team. He has been involved in Sustainable investment since 1996 when he headed the ethical investment team at Capel-Cure Sharp and is a regular speaker and writer on the subject.

Track record

Henry Boucher has 12.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.28%. During the worst period of relative performance (from July 2008 - June 2020) there was a decline of 42% relative to the index. The worst absolute loss has been 35%.

Periods of worst performance

Absolute -35.00% (May 2008 - October 2008)
Relative -42.00% (July 2008 - 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.

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Top 10 holdings

Data accurate as at 31 July 2020

5.9% Dsm Nv
5.8% Ocado Group Plc
5.8% China Mengniu Dairy Co
4.3% Treasury Wine Estates Ltd
4.1% Genus Plc
4% Wh Group Ltd
3.7% Americold Realty Trust Ord
3.7% Barry Callebaut Ag
3.6% Givaudan Sa
3.3% Just Eat Takeaway.com Nv
Source: Trustnet

Sector breakdown

Consumer Staples 42.00%
Materials 29.00%
Consumer Discretionary 16.00%
Industrials 7.00%
Health Care 6.00%

Key Investor Information - Income

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Key Investor Information - Accumulation

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