Schroders is set to launch a stock-exchange listed agricultural land fund in September.
The company said the fund is designed to offer investors exposure to the long-term returns of agricultural land brought about by growing demand and productivity.
The Schroder Agricultural Land Fund will be a closed-ended investment trust targeting net returns of 10-15% a year over a 5-10 year investment period.
Head of Schroder Property, William Hill, said the fund will have diversification benefits for investors with traditional commercial portfolios.
“The drivers behind value generation are clearly different and there is a strong long-term growth story to build on. It is an obvious product to add to our range,” he said.
The fund will invest in agricultural land and land related industries through investment in private equity companies, farm management businesses and related funds.
About 25% of it will invest in agricultural land related equities and commodities.
The fund will be managed by Mark Bridgeman.
“The demand on agricultural land is under a lot of pressure. The world’s population is forecast to grow by 44% over the next 40 years,” Bridgeman said.
“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.”
