Key information
The fund invests primarily in equities of international companies that are directly or indirectly involved in the agriculture or food value chain. The operations are independently of a benchmark and can reduce the investment level to as low as 51% in difficult periods. With the global population rising rapidly and the demand for food increasing as a result, the shares of agricultural and food companies are expected to perform well in the longer term, in spite of the sometimes significant price fluctuations of agricultural commodities. For ethical reasons does neither buy any physical commodities nor any derivatives who gain of its price increase.
Responsible manager since inception
Key information
| ISIN: | LU0350835707 |
| WKN: | A0NGGC |
| Category: | Global Themed Funds - General |
| VG/KVG: | DJE Investment S.A. |
| Fund Manager: | DJE Kapital AG |
| Risk Category: | 5 |
| This sub-fund/fund promotes ESG features in accordance with Article 8 of the Disclosure Regulation (EU Nr. 2019/2088). | |
| Type of Share: | distribution |
| Financial Year: | 01.01. - 31.12. |
| Launch Date: | 02/06/2008 |
| Fund currency: | EUR |
| Fund Size (04/10/2022): | 78,83 Mio EUR |
| TER p.a. (30/12/2021): | 2,14 % |
| Reference Index: | |
Fees
| Initial Charge: | 5,000 % |
| Management Fee p.a.: | 1,650 % |
| Custodian Fee p.a.: | 0,100 % |
|
Performance Fee p.a.: 10% of the [Hurdle: exceeding 6% p.a.] unit value performance, provided the unit value at the end of the settlement period is higher than the highest unit value at the end of the previous settlement periods of the last 5 years [High Water Mark Principle]. The settlement period begins on 1 January and ends on 31 December of a calendar year. Payment is made at the end of the accounting period. For further details, see the sales prospectus. |
Ratings & Awards (04/10/2022)
| Morningstar*: |
|
ESG Data
| MSCI ESG RATING (AAA-CCC): | A |
| ESG-Qualityrating (0-10): | 6,581 |
| Environment Rating (0-10): | 4,982 |
| Social Rating (0-10): | 5,202 |
| Governance-Rating(0-10): | 6,043 |
| Peergroup: |
Equity Theme - Agribusiness
(29 Fonds) |
| Coverage rate ESG rating: | 90,162 % |
| Weighted average CO₂ intensity (tons of CO₂ per 1 million US dollars in sales): | 119,302 |
Report date: 30/09/2022
Perfomance Chart
Performance in Percent
Risk metrics |
|
|---|---|
| Standard Deviation (2 years): | 12,60 % |
| Tracking Error (1 years): | - |
| Value at Risk (99% / 20 days): | -7,72 % |
| Maximum Drawdown (1 year): | -12,45 % |
| Sharpe Ratio (2 years): | 0,87 |
| Correlation (1 years): | - |
| Beta (1 years): | - |
| Treynor Ratio (1 years): | - |
Top Country Allocation (30/09/2022) |
|
|---|---|
| United States | 28,01 % |
| Mexico | 7,50 % |
| Spain | 5,64 % |
| Switzerland | 4,75 % |
| Canada | 4,21 % |
Asset Allocation (30/09/2022) |
|
|---|---|
| Stocks | 83,35 % |
| Cash | 16,65 % |
Investment approach
In addition to steady population growth, the increasing demand for protein-rich foods resulting from rising living standards in developing countries is among the main drivers of agricultural prices. Moreover increasing urbanisation is likely to cause a shortage of farmland and thus make it difficult to close the supply gap in the agricultural sector (see chart below). According to the Food and Agriculture Organization of the United Nations (FAO), droughts and floods could reduce worldwide crop yields by another 20 to 40% in future. In order to at least alleviate this looming food shortage, the demand for modern farm machinery and irrigation equipment, efficient seeds, pesticides and fertilizers, aquaculture and suitable animal feed is likely to increase significantly. In this environment, DJE - Agrar & Ernährung invests in shares of selected companies that benefit from the above mentioned trends. But also in the case of falling commodity prices the fund is able to take advantage by specific investments in the food industry. In order to reduce risk the fund seeks to diversify the portfolio both thematically and regionally.
Chances
- Active portfolio management constantly monitors the industry
- Risk spreading via the professional selection of securities
- Attractive growth prospects in the agriculture and food sector
Risks
- Issuer country and credit risks
- Increased risk of price fluctuations resulting from focus on specific sectors
- Equity prices may exhibit relatively strong fluctuations depending on market conditions
- Price risks for bonds, particularly when interest rates on the capital markets rise
Monthly Commentary
After the gas price reached new highs in Germany and the rest of the euro zone in August, numerous European fertilizer producers were forced to cut their production volumes. Given the exorbitantly high gas costs, nitrogen fertilizer production in particular no longer makes economic sense. Since the costs of natural gas represent about 90% of the production costs of the fertilizer industry, the other mineral fertilizers are also affected. Sales of potash fertilizers, for example, are likely to remain under pressure as the supply of the popular complete fertilizer solutions is significantly reduced. Supply shortages and record high prices are forcing farmers to use less mineral fertilizer. As a result yields per hectare in the European Union could decline further. Moreover the EU wants to impose drastic restrictions on fertilizer use in the future. Therefore a sustained easing in food prices is not expected for the time being. End consumers will therefore try to switch to cheaper food offerings. Further market share gains by food discounters are becoming apparent. As a result segments with a low share of private labels - such as snacks or pet food - should perform better. Accordingly, these segments are overweighted in the fund portfolio. In this market environment DJE - Agrar & Ernährung maintained its position in August with a value gain in height of 0.35%.