Deutsche Mutual Fund will launch DWS Global Agrobusiness Offshore Fund (DGAOF), an open-end foreign fund of fund (FOF). The fund will largely invest in DWS Invest Global Agrobusiness Fund based in Luxembourg and similar mutual funds. The fund can also have a maximum 20% allocation to debt.
DWS Invest Global Agribusiness Fund invests all the way from agricultural commodities to consumer products. The fund invests into companies in land and plantation seed and fertilizer, planting, harvesting, protecting and irrigation, food processing and manufacturing companies, offering investors the opportunity to capture value at various points along the "food chain". DGAOF will be benchmarked against MSCI World Index.
There are two other funds on roughly similar theme – JM Agri & Infra, a close-ended fund and Birla Sun Life Global Agri fund, an open ended fund which also invests in global agri companies besides Indian stocks.
The fund offers both dividend and growth options. The fund will charge 1% exit load for redemption within one year. The minimum application amount will be Rs 5,000. The New Fund Offer (NFO) period opens on April 6, 2010 and closes on April 30, 2010.
Deutsche Mutual Fund has another FoF, DWS Global Thematic Offshore fund which invests to capitalise on changing global social, economic and political dynamics. Deutsche Mutual currently manages assets worth Rs 12,525 crore as on February 28, 2010.