|
From Precy Dumlao, Opalesque Asia:
Baltimore, Maryland–based asset manager T. Rowe Price has joined the bandwagon of investors bullish on agricultural prospects when it said that rising commodity prices and mounting pressure to increase crop yields presents unique investment opportunities for its SICAV Global Natural Resources Equity Fund.
Portfolio Manager Tim Parker said, "There is a durable bull case for many agricultural stocks based on the fact that the world’s population is growing and they’re hungry. Consuming more meat also requires a greater proportion of grain, which puts upward pressure on prices. It’s as simple as that."
Parker has been constructive and increasing the fund’s investment in the agricultural space for some time now. He is particularly bullish in stocks of companies producing materials related to crop yields, particularly fertilizers.
T. Rowe Price which is managing nearly $521bn in assets as of June 30, 2011, cited statistics from the United Nations which predicted that the world’s population could balloon to nine billion 2050, up from the current seven billion. But as the population grows, total food demand is expected to jump by 70% around that period.
Compounding the positive outlook on agricultural commodity is the projected growing trends towards higher-calorific protein-oriented diet in emerging economies, including Brazil, Russia, India and China.
Unf...................... To view our full article Click here
|
RSS
