With North America the largest geographical weighting – currently 60% of the £233.m portfolio, Govan believes strong demand for resources will remain a key driver, underpinned by UN predictions of a population growth from 7.2bn to 9.6bn by 2050.
Meat, fish and dairy production were expected to have a strong year off the back of another healthy year of production in grains and edible oils, he believed.
Elsewhere, Barings said global fertiliser fundamentals had improved, indicated by stronger nitrogen and phosphate prices. The group added that potash pries had "found a floor following the Chinese contract with the Russian potash producer OAO Uralkali".
Beyond food production, the manager has added positions in North American paper companies. Through sector consolidation over the past few years coupled with the recent closure of a major paper mill leading to increased prices, sector stocks have contributed positively to performance.
The fund has delivered 2.7% over three years to 21 March compared with the IMA Specialist sector's 6%.
