Aim: Growth by investing globally in companies that are involved in or related to agriculture and farming
Minimum investment: Lump sum £5,000 or euro equivalent
Investment split: 100% in companies that are involved in or related to agriculture and farming
Isa link: Yes
Pep transfers: Yes
Charges: Initial 5%, annual 1.75%
Commission: Initial 3%, renewal 0.5
Tel: 020 7792 6400
The CF Eclectica Agricultural fund aims for growth by investing globally in companies involved in, or related to agriculture and farming.
Capital Trust Financial Management partner Bruce MacFarlane says “With value in traditional investment markets getting harder to find, alternative and niche investments provide IFAs with an attractive opportunity to diversify their portfolios in the quest for growth.
“Agricultural commodities are a hot topic and still deemed cheap on a historic basis. Outside of a number of exchange traded funds, the Eclectica agriculture fund provides investors with unique access to this attractive investment market.”
MacFarlane regards the literature as good, while the IFA commission and charges look fair for such a unique fund.
“There is nothing I dislike about the fund and would consider it as an attractive satellite holding for many a portfolio,” says MacFarlane. He thinks that the main competition will come from exchange-traded funds.
MacFarlane concludes: “With the global and insatiable appetite for raw materials both fur human and machinery consumption, it is difficult to envisage the price of agriculture products falling in the immediate future.”
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average