This action might not be possible to undo. Are you sure you want to continue?
MONTHLY FACTSHEET 31 DECEMBER 2010
The Fund had a very strong December, returning 9.5%. This took the total performance for 2010 to 27.4%, which was not only 11.6% higher than the MSCI World return of 15.8%, but also surpassed the DaxAgri Index return of 25.6% by 1.8%. Performance was strong across the portfolio, with the largest contributor being the fertiliser sector, which added 4.8% led by Yara, whose shares rose 14% as urea prices began to climb after the Chinese increased export duties. Shares in Russian potash producer Uralkali gained 36% amidst the rumoured tie-up with neighbours Silvinit, adding 0.5% to performance. Other notable performance came from seed producers Monsanto (up 16%) and Origin Agritech (up 20%), the latter driven by apparent willingness of the Chinese government to speed up the development of domestic GM seed capacity. The main factor driving outperformance of agricultural shares in December was the continuing appreciation of soft commodity prices, with the Rogers Agricultural Index up 14.3% in Sterling terms with wheat (+22%) and corn (+18%) the star performers. Over the last few weeks the outlook for crop prices has continued to improve with expectations for the southern hemisphere harvest falling. In Argentina, the prevailing La Nina has caused excessive dryness, putting pressure on yields for soybeans and corn, and although the dramatic flooding in Australia probably arrived too late to damage the crops in the fields, the impact on logistical infrastructure will keep much of the harvest out of the export market for the time being. Meanwhile Egypt, which is already the world’s largest importer of wheat, looks set to import even more in 2011 as domestic production has been hampered by a lack of high quality seed. Looking forward into 2011, we expect continued strength in soft commodity markets. As we wrote in the October factsheet, with grain supply having fallen almost 3% short of consumption in the 2010/11 crop year, supply needs to increase by 5% in 2011/12 just to keep pace with trend demand growth. And the worries over the southern hemisphere harvest are likely to make the current USDA production forecasts for 2010/11 look optimistic, further increasing the challenge to meet demand in 2011/12. With global coarse grain inventories already hovering around the perilous fifty day level, any shortfall in 2011 production would lead to food shortages just as we saw in early 2008. As crop futures rise to reflect these bullish fundamentals, profitability for farmers (whether they be growing wheat in France, corn in Iowa, sugar cane in Brazil or sunflowers in Ukraine) has risen to levels which could reach or even surpass the record levels seen in 2007/08. After two years of underinvestment in their farms, growers will be keen to invest once again in fertiliser, crop protection chemicals and high quality seed in an attempt to protect the fertility of the land, increase yields and maximise profits. Some more marginal lands left fallow in 2010 will be brought back into production. We are now starting to get confirmation of this higher spending from the companies who supply these products, with the very first days of 2011 seeing Mosaic increase their guidance for total industry sales of both potash and phosphate fertiliser and Monsanto indicate strong early buying of their high-performance (and high cost) corn, cotton and soybean seeds. The Fund remains positioned to take advantage of the trends of higher commodity prices and higher spending by farmers in 2011, with the majority of the portfolio split across the four subsectors likely to provide the most leverage to these themes: fertiliser (38%), machinery (14%), plantations (17%) and seeds (13%).
PERFORMANCE (%)—‘A’ £ shares
EAGF 1 Month 3 Months 1 Year Year to date Since launch CAGR since inception Calendar Years 2007 (from 08 June) 2008 2009 140 120 100 80 60 2007 +14.2 -34.6 +21.1 +0.0 -19.3 +17.3 +14.2 -15.3 +3.8 +9.5 +20.0 +27.4 +27.4 +15.2 +4.1 MSCI World +7.3 +9.9 +15.8 +15.8 +9.6 +2.6 Relative +2.2 +10.1 +11.6 +11.6 +5.6 +1.5
Agriculture Fund MSCI TR World Net Index
Past performance is not a guide to future returns NAV A shares C shares AUM $¢ 178.46 179.48 £p 115.23 116.67 €¢ 133.84 135.36 £149.0m
SECTOR ALLOCATION (% NAV)
Crop Nutrition (38.8) Infrastructure (16.3) Land (15.3) Machinery (14.3) Protein (3.2) Seeds (11.0)
TOP 10 HOLDINGS (% NAV)
1 Potash Corp. 2 Mosaic 3 Yara 4 Monsanto 5 Deere 6.9 5.9 5.9 5.5 4.6 6 7 8 9 Syngenta CF Industries Agrium Brasil Foods 4.2 4.2 4.2 3.1 3.0
Portfolio data as at 31 December 2010. Source: Eclectica Asset Management. Please note that above references to ‘MSCI World’ relate to the MSCI TR World Net Index whereas data within previous factsheets relates to the MSCI TR World Growth Net Index. This change brings our benchmark reporting in to line with sector convention.
CF Eclectica Agriculture Fund
MONTHLY FACTSHEET 31 DECEMBER 2010
COUNTRY BREAKDOWN (% NAV)
Australia Brazil Canada Germany Hong Kong Indonesia Japan Malaysia Netherlands Norway Poland Singapore Sweden Switzerland UK US 0 2.0 0.7 13.1 3.5 4.0 6.0 1.0 3.5 1.6 5.9 0.2 10.3 0.5 5.6 6.0 35.1 5 10 15 20 25 30 35 40
MANAGER DETAILS Investment manager ACD Administrator FUND DETAILS Share classes Structure Dividends ISA/PEP eligible Price reporting FUND IDENTIFIERS ISIN ‘A’ Shr (£) ‘A’ Shr (€) ‘A’ Shr ($) ‘C’ Shr (£) ‘C’ Shr (€) 08 June 2007 George Lee MSCI TR World Net Index 64 ‘C’ Shr ($) GB00B1XGDS05 GB00B1XGDP73 GB00B39WY943 GB00B3B02F88 GB00B3B02P86 GB00B39WYQ11 SEDOL B1XGDS0 B1XGDP7 B39WY94 B3B02F8 B3B02P8 B39WYQ1 £/€/$ UCITS III sub fund of CF Eclectica Funds Accumulated Yes Daily in the Financial Times Eclectica Asset Management LLP Capita Financial Managers Ltd Capita Financial Administrators Ltd
Launched Fund manager Benchmark Number of holdings
FEES, COSTS AND REDEMPTION STRUCTURE Initial charges Anti-dilution levy Annual charges Minimum investment Up to 5% (class A); up to 1% (class C) Up to 0.75% on subs/reds over 5% of NAV 1.75% (class A); 1.25% (class C) £5,000 (class A); £2m (class C) (equivalent for € and $) Dealing Dealing line SERVICE PROVIDERS Depository Auditors Accounts date SALES AND MARKETING BNY Mellon Ernst & Young Financial year-end 31 December Daily at 12pm 0845 608 0941
Patrick Cooper / Harry Dickinson / Edward Higgin / Richard MacLure / Steve Smart T. (0)20 7043 0500 / E. email@example.com Eclectica: Joe Rouncefield / Investor Relations T. (0)20 7792 6420 / E. firstname.lastname@example.org
This document is being issued by Eclectica Asset Management LLP ("EAM"), which is authorised and regulated by the Financial Services Authority (the FSA"). CF Eclectica Agriculture Fund ("the Fund) is a recognised collective investment scheme in the UK under section 243 of the Financial Services and Markets Act 2000 ("FSMA"). The promotion of the Fund and the distribution of this document however may be restricted by law in other jurisdictions. No recipient of this document may distribute it to any other person. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of, and no liability is accepted for, the information or opinions contained in this document by any of EAM, any of the funds managed by EAM or their respective directors. This does not exclude or restrict any duty or liability that EAM has to its customers under the UK regulatory system. This document does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, any securities mentioned herein nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefor. Recipients of this document who intend to apply for securities are reminded that any such application may be made solely on the basis of the information and opinions contained in the relevant prospectus which may be different from the information and opinions contained in this document. The value of all investments and the income derived therefrom can decrease as well as increase. This may be partly due to exchange rate fluctuations in investments that have an exposure to currencies other than the base currency of the relevant fund. Historic performance is not a guide to future performance. All charts are sourced from Eclectica Asset Management LLP. Net Asset Values are as at the date of the document. (c) 2005-11 Eclectica Asset Management LLP; Registration No. OC312442; registered office at 6 Salem Road, London, W2 4BU.