DWS Global Equity Agribusiness Fund
The philosophy for the DWS Global Equity Agribusiness Fund is based on demographic trends.
Increasing population, economic growth and the ongoing urbanisation trend will drive food demands.
DWS Global Equity Predictions suggest that the demand for food and other agricultural goods and services will double
Agribusiness Fund over the next generation. Furthermore, a dramatic shift in nutritional preferences to a higher intake of
Investing in a global protein occurs as a result of a global wealth effect.
megatrend: The business of
Limited farmland will result in a booming demand for agrichemicals and seed together with newly
feeding the world.
The DW S Global Equity developed agricultural methods. Globalisation and new free trade commitments will lead to
Agribusiness Fund provides increased trade in agricultural products. Agricultural commodity prices are expected to increase
investors with exposure to an following trends in hard commodity prices.
actively managed portfolio of
global agribusiness companies.
We believe that the global agribusiness market is set to be one of the fastest growing segments in
The Fund seeks investments in all the market. The DWS Global Equity Agribusiness Fund intends to invest all the way from
parts of the food agricultural commodities to consumer products. The Fund invests in promising companies in land
production-to-consumption value and plantation, seed and fertiliser, planting, harvesting, protecting and irrigation, food processing
chain via stakes in listed and manufacturing companies, offering investors the opportunity to capture value at various points
companies worldwide including along the “food chain”.
those involved in land and
plantations, seeds and fertilisers, Our universe is subject to regular review and can be modified as needed; it is not constrained as it is
equipment manufacturing for benchmark-independent.
planting and harvesting, crop
protection, water and irrigation,
aquaculture, bio fuels, the Our investment process
marketing and sales of Universe
agricultural and food products,
and climate services. Installed base Short List/ Risk
Tractors Investable management PORTFOLIO
Combines Universe Specific stress tests:
Farmers’ purchasing power Determining Harvest shortfalls
Valuation upside Trade embargoes
Africa potential and
Companies Irrigation problems
South America whose screen risk
North America metrics merit CFROI Pest, disease
Europe closer P/E weightings outbreaks
Asia examination P/B Diversified Dual-region
(trading ROE across major synchronous harvest
Arable land growth volume, DCF regions impairment
market Diversified Consumer behavior
Crop production growth capitalization, across major changes
Meteorological seasonality Weather/climate
The DWS Global Equity Agribusiness Fund invests over the full spectrum of the food chain
including agriculture, aquaculture, agrochemicals, agro-tech and food products.
For inclusion in the Fund, companies must meet the following criteria:
Strong market position in their specific area of activity.
Favourable balance sheet ratios.
Above-average quality of management, focused on generating strong and sustainable
Clearly formulated corporate strategy with good prospects for success.
Transparent and shareholder-friendly information policy.
In addition, we test the risk metrics by quantitatively defining the stocks whose cash flows are
geared into the increase in global protein consumption. We then filter a large universe of stocks
(700-800) to develop a list of companies that we actively interview and analyse. This step takes us
across the globe and transcends sectors. The final step is to have a short list which qualifies for
valuation and further stress-testing and admission to the portfolio construction process.
We seek to construct our portfolio in such a way that the upside/downside asymmetry is
commensurate with absolute position size. Risk aversion is our guiding factor - every unit of risk
must be compensated with significantly more units of upside potential. The aim of our portfolio
optimisation is the efficient allocation of capital, maximizing expected returns while limiting risk. It is
important to note that our portfolio optimisation model is one of many tools we use to determine
The DWS Global Equity Agribusiness Fund is theme-based, and as such sector and country
allocations are a residual of our theme-based process. The Fund will invest into all principal areas
of global agribusiness and will take further opportunities by investing into promising companies
along the entire food chain.
DWS Global Equity Agribusiness Fund
Contact details DWS Investments is the mutual fund arm of Deutsche Bank’s Asset Management division.
To discuss any information in Founded in Germany in 1956, DWS Investments is the largest mutual fund company in
this report please call freecall: Germany1 and among the top ten players globally2 in terms of assets under management. DWS
Investments is the name under which Deutsche Asset Management (Australia) Limited markets
Individual investors a range of its funds in Australia.
1800 034 402 1 BVI, as of December 2006.
2 Strategic Insight, FERI FMI, ITA as of December 2006, and AAM as of June 2006.
1800 678 519 About Deutsche Asset Management
Deutsche Asset Management is the asset management arm of the Deutsche Bank Group, which
Alternatively, visit our web site
is one of the world’s strongest financial institutions. Deutsche Asset Management is one of the
largest investment managers in the world. We have offices in more than 60 countries, allowing us
to draw on a breadth of investment skills, resources and insights to enhance the service that we
deliver to Australian investors.
Fund at a glance
Investment objective To provide investors with exposure to an actively managed
portfolio of global agribusiness stocks in sectors such as
agrochemicals, biotechnology and food processing. The
Fund will invest in stocks to exploit value creation within
the whole supply chain of the global agricultural business.
Income potential Low
Growth potential High
Primary investment universe MSCI World Index
Inception date March 2007
Suggested investment period 3-5 years
Typical number of stocks 40-80
Entry and exit fee Nil
Minimum investment amount $25,000
Investment management fee 0.90% pa (capped), inclusive of GST
Buy/sell spread +0.20/-0.20%
Distribution Frequency Semi-annually after 30 June and 31 December each year
Currency Hedging The intention is to fully hedge the foreign currency
exposure of the Fund. However, short term movements in
cash flows or fluctuations in market values may draw the
Fund away from a fully hedged position.
APIR code MGL0019AU
Why invest in the DWS Global Equity Ag ribusiness Fund?
The DWS Global Equity Agribusiness Fund offers:
access to a global dynamic sector that represents one of the fastest growing segments of
the global commodities market and participating in the entire agribusiness value chain;
access to dedicated and experienced global specialists within the broader global thematic
the ability to exploit the benefits of long term cashflow analysis;
an established and proven investment process with detailed fundamental research within a
risk controlled framework.
DWS Global Equity Agribusiness Fund ARSN 124 220 202 is a registered Managed Investment Scheme managed by Deutsche Asset Management (Australia) Limited and a Product Disclosure Statement for
the Fund can be obtained from http://www.am.australia.db.com or by calling Deutsche Client Services. This is not an offer of securities or financial products, nor is it financial product advice. You should consider
the Product Disclosure Statement in deciding to acquire or to continue to hold the Fund. As this document has been prepared without taking account of your objectives, financial situation and needs, you should
consider its appropriateness having regard to your objectives, financial situation and needs. An investment in the Fund is not a deposit with or any other type of liability of Deutsche Bank AG ARBN 064 165 162,
Deutsche Asset Management (Australia) Limited or any other member of the Deutsche Bank AG Group and the capital value of and performance of an investment in the Fund/s is not in any way guaranteed by
Deutsche Bank AG, Deutsche Asset Management (Australia) Limited or any other member of the Deutsche Bank AG Group. Investments are subject to investment risk, including possible delays in repayment
and loss of income and principal invested. Although non-Fund specific information has been prepared from sources believed to be reliable, we offer no guarantees as to its accuracy or completeness. Past
performance is not an indicator of future results. Any performance forecasts are not promises of future performance and are not guaranteed. Opinions expressed may change. All dollars are Australian dollars
unless otherwise specified. All indices are copyrighted by and proprietary to the issuer. Issued by Deutsche Asset Management (Australia) Limited ABN 63 116 232 154 Australian Financial Services Licence