Investing in Agriculture

Why should I invest in Wealthcheck Funds Management Agriculture Funds?

  • Agribusiness is a leading contributor to the Australian economy, providing more than $200 billion in revenue and likely to increase to A$244 billion in 2015-2016.
  • By 2050, the world population will reach 9 billion, requiring a double of current global agricultural production. li>
  • Rapid growth in calories and meat consumption in developing nations, especially those with large population and growing GDP such as China and India, is exacerbating today’s current supply constraints.
  • China must feed 22 per cent of the world’s population but has less than 10 per cent of the world’s arable land.
  • Local wheat prices are forecast to increase by a further 3-5 per cent through Q4 2012 despite a high Australian dollar.
  • Rising wheat prices are expected to increase Australian wheat export by 15 per cent in 2012-13 to around A$7.3 billion, the highest value of wheat export since 1985-86 in real terms (source: ABARE).
  • With cotton production at a record high in 2011-12 and a high production forecast for 2012-13, Australian cotton exports are forecasted to increase by 4 per cent in 2012-13 to a record 1.04 million tonnes.
  • the recent US drought has caused record high soft commodities prices, highlighting further the instability between global food production and demand.
  • Agriculture as an Asset Class

    • Historically strong returns
    • Attractive comparative returns
    • Higher risk-adjusted returns, high reward
    • Diversification and low correlation with other asset classes
    • Hedge against inflation

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