Food products (healthy and bad) are consumed day in and day out around the world. As awareness has grown around the long-term impact of food on overall health, quality of life, and life expectancy, investors are increasingly concerned about where their money sits on the spectrum.
Investors want to be sure they’re investing in producers and distributors that are helping make people healthier – not the reverse.
SMaRT food is Sustainably Manufactured and Responsibly Transformed – a more sustainable method of production and distribution.
Investors seeking to increase asset value are investing in responsible food supply chain companies to help accelerate the transition to a more sustainable world.
BNP Paribas’ Smart Food fund is one such sustainable thematic fund. While SMaRT food markets have improved since 2021, the current market is still down on returns.
And, as shown in the graph, Affinity’s SMaRT thematic baskets are outperforming the BNP Paribas fund (the blue line represents the Affinity basket, the green line is the BNP fund).
Time span of simulation from 27th April 2022 to 27th April 2023
Using Affinity’s thematic intelligence approach, the total return of the simulated CID portfolio yielded 2.53% and excess returns of 2.93%, versus a total return of -0.4% from the BNP Paribas SMaRT Food fund.