Tuesday, June 26, 2007
I found this little item at FT Alphaville yesterday about what could simply be described as an Australian meat fund.
Its kind of a quirky idea and not surprisingly Macquarie Bank is involved.
I have no opinion for now on investing in cattle in Australia in this or any other manner but it opens a door to a different way to invest. According to the FT piece the market in Australia for beef has been healthy for quite a while. This fund would be a way to invest in the real economy, presumably (I just read about this so bear with me if I don't have every aspect of this dissected).
This is intriguing to me. It might pave the way to palm oil in Malaysia, timber in New Zealand or fish in Iceland, as three examples.
A reasonable first reaction might be to laugh at these but capturing the economic goings on in a country without direct stock market exposure is probably a good way to reduce volatility and dip a toe into some countries that you might not want exposure to because of volatility tolerance.
If this concept goes anywhere I am sure Macquarie will be in there somewhere. I would further add that this idea strikes me as having more merit that several of the equity ETFs that have come out or are in the pipeline.