This Luxembourg-domiciled SICAV is registered for sale in the UK, and invests in opportunities offered specifically by stocks in the fast-growing agricultural sector or related areas.

According to Allianz, rising affluence in the emerging markets – not just China but India, the Middle East and South America – is increasing demand for better quality, protein-rich food, such as meat and dairy produce, placing significant demand on the agriculture sector.

Add to this the increasing demand for biofuels, whether corn-based, US-produced fuel or Brazilian sugar-based ethanol, the supply uncertainties created by climate change and the growing demand for organic food, and you have a sector with many interesting investment opportunities.

Minimum investment: Euro1,000
Initial charge: 5%
Annual management fee: 1.75%
Contact: For more information visit www.allianzgi.co.uk

Richard Wallis says:
Following the trend that has seen launches of similar products from its
fund management competitors, Allianz is playing the boom in soft commodity
prices by launching a third fund to its ‘Trends’ range. Allianz seems keen to tap into some of the key niche investment themes that have recently surged in investor popularity.

The Allianz RCM Global Agricultural Trends fund, launched at the start of April, is managed by RCM’s San Francisco-based Bryan Agbabian. The fund has a wide investment remit in that it will hold anywhere between 30 and 80 stocks and will leverage off RCM’s Grassroots Research function.

There is a sound rationale behind the fund launch with the explosive demand for bio-fuels and growing demand in countries such as China and India for protein-rich food placing increased pressure on agricultural supply. Prices of corn and wheat have risen sharply over the short term.

However, despite the rising popularity of this sector, investor enthusiasm needs to be tempered with an element of caution. The intellectual rationale behind these funds may be sound but investors should keep exposure to this area to a small part of their overall portfolio. The fund will undoubtedly receive a great deal of attention in the coming months but investors may well be in for a volatile ride.