After bringing the pet and animal wellbeing theme in Hong Kong and Singapore, Allianz Global Investors is expected to bring another thematic product – this time focusing on food.
The firm filed an application with the Monetary Authority of Singapore to launch the Allianz Food Security Fund, according to the regulator’s records.
The fund has not yet been launched, according to its prospectus. In addition, the fund is not yet included on the firm’s list of products on its website.
The fund will invest in global companies that offer products or solutions that “contribute to positive environmental and social outcomes along the entire food supply chain across production, transportation and quality and safety of food”, according to the prospectus. The companies it invests in should also be aligned with the UN’s sustainable development goals.
The fund is a global equity fund and can invest up to 50% of its assets in emerging markets and a maximum of 10% in China A-shares, the prospectus added.
Wealth managers, including BNP Paribas Wealth Management, Credit Suisse and UBS Wealth Management, have included the broader food industry as part of their long-term investment themes, according to various reports issued by the firms. According to a UBS report, revenues from the “food innovation” alone is expected to reach $700bn globally by 2030 from $135bn in 2018.
Thematic suite expansion
With the new fund, Allianz GI has expanded its current suite of thematic and sustainable products. Currently, they include at least five equity products, which are the Global Artificial Intelligence, Pet and Animal Wellbeing, Global Sustainability, Global Water and Thematica funds; and two fixed income offerings: the Allianz Euro Credit SRI and the Allianz Green Bond funds, according to the firm’s website.
All strategies are available in Hong Kong and Singapore, with the exception of the Euro Credit SRI fund, according to data from FE Fundinfo.
Besides the Food Security Fund, Allianz GI is also developing other strategies. According to company filings on the US Securities and Exchange Commission, Allianz GI has recently added the Allianz Positive Change and Allianz Clean Planet strategies, along with the Food Security offering, as legal entities in the US.
Like the Food Security Fund, the two strategies are not yet to be found on the firm’s website.