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UK-based investment manager Schroders has announced that it is onshoring its Global Sustainable Food and Water Fund, to increase the level of accessibility to UK investors.
Initially launched in October 2021, the fund is managed by Mark Lacey, Felix Odey and Alex Monk. It aims to provide capital growth by investing in equities of companies worldwide which help the transition towards providing food and water sustainably, the firm said in a statement.
With the world population set to reach 10 billion by 2050 and with emissions rising, companies within the investment universe are aligned to solve at least one of the five key sustainability areas – climate change and greenhouse gas emissions, biodiversity, pollution and waste, water management and health and nutrition, the firm continued.
Between its sustainability objectives and key investment areas, the offshore fund is classified under the EU Sustainable Finance Disclosure Regulation as Article 9. It forms a part of the Schroders Global Transformation Range, a suite of funds giving investors long-term exposure to the most powerful and persistent themes shaping the world’s future.
“Our current food and water system is unsustainable and will need to undergo a significant transformation to cope with the increasing pressures of a growing population while simultaneously meeting climate and biodiversity needs,” Mark Lacey, head of global resource equities and portfolio manager of the SUTL Sustainable Food and Water, said.
“The growth opportunity within this space remains largely underappreciated and current investment rates are predicted to increase substantially across the different value chains by 2050. This therefore presents an incredible opportunity for investors and we are pleased that the fund is now more widely available so that more can access the possibilities within this fascinating area of ongoing change and development,” he continued.
Top 10 holdings include French retailer Carrefour, Norwegian chemical company Yara International, a producer of nitrogen-based mineral fertilizers, as well as German-based meal-kit provider HelloFresh. Other top 10 holdings are German pharmaceutical and biotech multinational Bayer, Canadian fertilizer company Nutrien, Finnish chemical company Kemira, and agri-food company Darling Ingredients. A number of firms are investing in this area. For instance, Franklin Templeton launched has just launched its new Franklin Future of Food ETF, targeted at investment in new technologies to produce more food using less resources, including precision agriculture and vertical farming. See more articles on food and agriculture here and here.