Ingredients of food investment
Some of the Securities and Futures Commission-authorised mutual funds in Hong Kong worth looking into are Schroder AS Agriculture A Acc, Lyxor Agriculture Fund, Parvest World Agriculture (USD) C, Celsius Global Agriculture Delta A USD, Amundi Funds Global Agriculture AU C, DWS Global Agribusiness A2 and Robeco Agribusiness Equities D EUR.
Of these, the funds that are more directly into commodities, such as the first four, have done better over the past year as crop prices went through the roof in this period. Celsius Global, for example, returned nearly 53 per cent through the year to January 31, according to Thomson Reuters Lipper.
'Agflation' stocks can be found in: plantations (palm oil, rubber etc); grains (rice, wheat etc); agricultural produce such as vegetables, fruit and meat; fertiliser; seeds; water; equipment; traders and brokers. Sime Darby, Incitec Pivot, Far Eastern Textile, Bunge, Olam, Archer Daniels Midland, Deere & Co and Potash Corp are among some of the good global stocks.
Some pure food plays available in Hong Kong are:
Fertiliser: China XLX Fertiliser (1866 HK), Sinofert (297 HK), China BlueChemical (3983 HK) China Petroleum and Chemical Corp (386 HK)
Water: China Water Affairs Group (855 HK), Xinjiang Tianye Water Saving Irrigation System (840 HK), Beijing Enterprises Water Group (371 HK), Tianjin Capital Environmental Protection Group (1065 HK), Guangdong Investment (270 HK)
Grains/agriproducers: China Agri-Industries (606 HK), Chaoda Modern Agriculture Holdings (682 HK), China Green Holdings (904 HK), Asian Citrus (73 HK)
Seeds: Global Bio-Chem Tech (809 HK)
Equipment: First Tractor Co (38 HK)