|Global Agriculture Fund|
|Investment objective||To achieve mid to long term capital growth by investing in Agriculture Industries|
|Fund mandate||Emphasis on stable corporate earnings growth shares and funds
Selective Agriculture and Mineral sectors
|Asset allocation||Funds Weights As of 15th April 2014
Cash and others: 12.70%
|Maximum return objective||No limits|
|Minimum return objective||8% over a period of 12 months|
|Recommended term||12 months and longer|
|Target market||Investors who are in their wealth buildup phase and require conversative yield in the short term
Investors seeking exposure in the Agriculture sector
Investors who are able to withstand short-term market fluctuations in pursuit of maximum returns over the short to mid term
|Fee structure (excl. VAT)||Subscription fee: 2%|
|Income distribution||12 months
Lock in Period: 180 days (early redemption penalties apply)
Penalty: 5% on Net Asset Value
|Investment||1 share: $100.00
Minimum: 500 shares or $50 000.00
Additional: 200 shares or $20 000.00
|Fund category||Global Agriculture Fund|
|Subscription date||15th Day of the month
Initial Offer Price: $100.00
Global Agriculture Fund
The Fund’s main objective is to achieve mid to long term asset growth by investing in companies that specialises in agricultural or soft commodities. These companies may include, but are not limited to: seed and fertiliser manufacturers, agricultural producers, including aquaculture, logistics and transportation, food processing, food wholesale, food retail and desalination companies.
“Increased standard of living is the main driving force.”
Why Invest in Agriculture?
Agricultural supply and demand imbalance: The United Nations estimated that by 2050, global pollutions will grow to over 9 billion. Standard of living of emerging countries will increase and will be the main driving force to a more protein pattern diet and thus pushing up agricultural needs. In addition to the human needs to fill his stomach, at least 40% of the US corn production will be used in bio-energy.
Following the footsteps of Investment Gurus: Billionaire and commodities guru Mr. Jim Rogers has predicted that agriculture will be the most exciting career development in the next 20 years. Mr. Warren Buffett is also very bullish on this sector and believes there will be a surge in global food demand. In addition, Microsoft founder Mr. Bill Gates and Chinese richest man Mr. Li Ka-Shing is also optimistic about the three innovative food companies; manufacture of artificial eggs, artificial meat and synthetic salt meat food technology companies.
Oligopoly Industry: The agricultural industry is mostly an oligopoly market. 70% of the global master suppliers are in the hands of 10 companies such as Monsanto, Syngenta, Bayer and DuPont etc, while the four major global grain merchants (ADM, Bunge, Cargill, Louis Dreyfus) dominate the global food processing trade chain. As such, in order to grab a bigger share of the market, various agricultural companies have resorted to M & A in recent years.
In supporting this insight, HCB Trust Ek. för., in association with National Federal Capital Ltd., has launched the “HCB Global Agriculture Fund” to capitalise on this exciting belief that agriculture will be the next big mover in the market. Our fund managers will undertake the fixed-rate investment principles and processes into the precise analysis of each sector to determine their return potential, thus maximising growth with asset protection.
For a more detail discussion on how you can benefit and invest in the HCB Global Agriculture Fund, please contact your respective financial advisor.