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 (01/02/2023): | 64,89 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 (01/02/2023)
| Morningstar*: |
|
ESG Data
| MSCI ESG RATING (AAA-CCC): | AA |
| ESG-Qualityrating (0-10): | 8,157 |
| Environment Rating (0-10): | 5,213 |
| Social Rating (0-10): | 5,278 |
| Governance-Rating(0-10): | 6,657 |
| ESG rating in comparison group (0% lowest, 100% highest value): | 20,000 % |
| Peergroup: |
Equity Theme - Agribusiness
(30 Fonds) |
| Coverage rate ESG rating: | 93,316 % |
| Weighted average CO₂ intensity (tons of CO₂ per 1 million US dollars in sales): | 113,156 |
Report date: 31/01/2023
Perfomance Chart
Performance in Percent
Risk metrics |
|
|---|---|
| Standard Deviation (2 years): | 11,58 % |
| Tracking Error (1 years): | - |
| Value at Risk (99% / 20 days): | -7,29 % |
| Maximum Drawdown (1 year): | -14,70 % |
| Sharpe Ratio (2 years): | 0,41 |
| Correlation (1 years): | - |
| Beta (1 years): | - |
| Treynor Ratio (1 years): | - |
Top Country Allocation (31/01/2023) |
|
|---|---|
| United States | 31,65 % |
| Netherlands | 11,59 % |
| United Kingdom | 6,54 % |
| Denmark | 5,77 % |
| Australia | 5,48 % |
Asset Allocation (31/01/2023) |
|
|---|---|
| Stocks | 94,55 % |
| Cash | 5,45 % |
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
Towards the end of the month, most agricultural commodity prices recovered. One supporting effect was the weaker US dollar. The other were increased fears of frost damage in growing areas of winter wheat because of an extremely severe onset of winter in North America around Christmas. In general, however, the question arises with regard to 2023 as to what extent China will increasingly source its agricultural raw material requirements from South America rather than from the USA in the future. This is likely to depend not least on further weather conditions in Brazil. US oilseeds should nevertheless remain in demand, if only because of the sharp rise in demand from domestic biofuel producers. This will be an even greater factor if it proves possible to refuel aircraft with ecofuel in the future. In this context the use of catch crops would also be welcome as they are beneficial for the soil and far less in direct competition with food.