The new Guernsey domiciled LSE-listed closed-end investment trust will offer investors exposure to global agricultural land and land-related industries through investment in private equity companies, farm management businesses and related funds. Approximately a quarter of the fund will invest in agricultural land related equities and commodities with a target net return of 10-15 per cent per annum over a five to 10 year investment period.
Mark Bridgeman will manage the fund with the help of an investment committee made up of internal specialists from Schroders, leading external agricultural practitioners and investment advisers.
In March, Schroders closed its $6bn (£3bn) alternative solutions agriculture fund after too many investors rushed to put money into it following a surge in commodity prices.
Schroders agricultural land fund manager Mark Bridgeman says:
“The demand on agricultural land is under a lot of pressure. The world’s population is forecast to grow by 44 per cent over the next 40 years. With improved diets, food consumption is set to double, as GDP/capita rises so does the consumption of meat which demands far higher amounts of grain. However whilst food consumption is on the increase, productivity improvements have slowed. The Schroder agricultural land fund is designed to benefit from this rapidly changing landscape by investing in companies and private equity funds that will generate capital and income from the efficient management of land.”