CPR AM launches food-focused equity SICAV fund
Amundi’s thematic centre CPR AM has launched the CPR Invest – Food for Generations, a sub-fund of its Luxembourg Sicav CPR Invest fund.
The new fund will be co-managed by Stephane Soussan, portfolio manager specialising in agriculture, energy and natural resources, and Anne Le Borgne, senior portfolio manager focused on lifestyle and luxury at CPR
The Food for Generations fund will invest across the whole food value chain with the aim of capturing the food ecosystem and the mega trends of this generation.
It will cover a universe of 600 stocks across agriculture, water, food products, beverages, and the food retail and restaurants space.
Three main sub-thematics will drive the strategy:
• Increasing food and water consumption, driven by a growing population with increasing incomes
• Investments needed to increase efficiency in food production, such as the expansion of future production through optimised use of resources and efforts made in waste management
• Emergence of new trends of food production and consumption: animal protein (growing middle class in emerging markets), convenience (urbanised lifestyles), indulgence (‘quest’ for excitement and new experiences), and health and wellness (increasing awareness of healthy eating, demand for organic food and other emerging habits related to eating)
CPR AM chose the “World Food Day” week to mark the launch of the fund. Prior to any investment, the management team of the Food for Generations fund will consider the environmental and social impacts as well as potential governance factors.
Stephane Soussan and Anne Le Borgne, portfolio managers, said: “With the world population set to reach 9.7 billion in 2050, it is clear that demand for food is growing along incomes and consumers’ expectations.
“There will be an additional 2.2 billion people to feed. Amidst all this growth, we must not forget that our resources are finite and already under significant pressure which makes feeding a growing population a significant challenge. It is vital that we meet this challenge while maintaining a sustainable approach to our investment strategy.”
Vafa Ahmadi, head of global thematic equities, commented: “Our team is constantly looking for new themes and innovative approaches to investing which are anchored in long-term cycles. Following the launch of Global Disruptive Opportunities, Food for Generations was the logical next step as the modern investor becomes more concerned with food, water and the way in which it travels ‘from farm to fork’.
“At CPR AM we have identified a number of growth drivers across the entire food value chain, powered by trends such as a growing world population, economic development and urbanisation.”