Schroders launches agricultural land fund

The global asset management company will invest a quarter of the fund in agricultural land.

Schroders has launched the Schroder Agricultural Land Fund, a new vehicle that will invest in agricultural land and related industry. The fund will have a lifespan of five to ten years and is aiming to return 10-15 percent. The target size for the fund was not disclosed.

The Fund, which is being structured as a closed-ended 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 25 percent of the fund will invest in agricultural land related equities and commodities.

The fund will be managed by Mark Bridgeman, who will be supported by a specially selected investment committee made up of Schroders’ specialists with property, private equity and agricultural experience, as well as leading external agricultural practitioners, as investment advisers.

“The demand on agricultural land is under a lot of pressure,” said Bridgeman in a statement. “The world’s population is forecast to grow by 44 percent over the next 40 years. With improved diets, food consumption is set to double, as GDP per capita increases so does the consumption of meat which demands far higher amounts of grain.”

Schroders has managed property funds since 1971 and today has more than  £8.9 billion (€11.1 billion,  $17.6 billion) of gross property assets under management. The Schroders property team consists of over 130 people across offices located in London, Wiesbaden, Amsterdam, Milan, Jersey, Paris, Luxembourg, Stockholm and Hong Kong.