In contrast, companies hit by the woes of the soft commodities universe have been under pressure. For example, the manager notes that Agco has actually been a detractor in the past but is now offering “exceptional value”.
Turning to the future, Mr van der Geer is in a bullish mood. He says: “It is getting quite exciting… there is more value in the sector, especially across the farm inputs spectrum.”
M&A activity is heating up, too. The manager points to the recent announcement that US fertiliser group CF Industries and rival Norwegian group Yara are in exploratory talks regarding a potential merger. He says: “This all makes me more confident; devaluations are now more attractive and the outlook is getting a lot better.”
EXPERT VIEW
Ben Willis, head of research, Whitechurch Securities
The managers of this fund adopt a broader outlook in agriculture investing, preferring a ‘field-to-fork’ approach that incorporates a good crop of ideas, such as food packagers and supply-chain servicers. The fund is now more than five years old and has provided growth. But 2014 has not gone well and this could put it at a disadvantage when comparing it to similar funds.
