Best Performing Sector of 2014

Frontier markets have led the charge so far this year - up on average 25% since January. But the surprise star performer has been agriculture, returning 32% in nine months

Emma Wall 9 October, 2014 | 2:42PM
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Investment headlines are full of the success of frontier markets – the record performer of 2014. But closer inspection reveals that frontier markets have been beaten by a couple of farmyard animals.

The Morningstar Livestock Commodity Index which tracks the price of cattle and pigs has returned 32% so far this year, compared to the MSCI Frontier Markets index which is up 25%.

Lean hogs and live cattle to give the commodities their proper names are experiencing a pricing boom thanks to a lack of livestock. A nasty virus has wiped out the porcine supply and cattle herds have been declining since the Seventies. As a result the ETFS Livestock ETC (AIGL) is up 24% this year.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barings Global Agriculture A GBP296.80 GBP0.03Rating
Sarasin Food & Agriculture Opps A Acc2.28 GBP-0.65Rating
Tyson Foods Inc Class A76.22 USD0.00Rating
WisdomTree Agriculture ETC GBP409.21 GBP0.53
WisdomTree Grains ETC GBP293.57 GBP0.83
WisdomTree Livestock ETC2.26 USD-0.08

About Author

Emma Wall  is former Senior International Editor for Morningstar

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