First State launches the Global Agribusiness Fund to the offshore product range in Hong Kong. Investors will now be able to invest in Class I and Class III Shares in the fund. The fund is managed by Senior Portfolio Manager, Renze Casarotto from Sydney, and a Co-Portfolio Manager, Skye Macpherson, from the Global Resources investment team.
Agribusiness companies are involved in the production, processing, distribution and marketing of agricultural products. The Fund aims to deliver long-term returns by investing in agribusiness companies. And will track a customize benchmark, which combine of the 75% DAXglobal Agribusiness index and 25% S&P Global Timber and Forestry Index.
The Fund will be formed of a concentrated portfolio of 20 to 75 stocks from a universe of 400 companies across seed, fertilizers, crop protection, equipment services, farming operations, technology and water industry sectors. And the fund will diversify risk across geography, sectors and market capitalisations and to maintain a consistent investment policy.
The IPO period of the Fund (Class I) begins 20 April 2010 and ends on 14 May 2010. The minimum investment amount is US$1,500 and the initial offer price is US$10 per share. The initial sales charge is 5% and management fees is 1.5% annually.
