Who Can Deliver on the Transition Metals Theme?

    Stockholm (NordSIP) – Thematic investment strategies seem to be gaining momentum lately. Moreover, they are getting increasingly more specific. Take, for instance, the recent search launched by Global Fund Search (GFS). On behalf of a UK-based institutional investor, the platform is looking for a strategy tapping into the “Transition Metals”-theme, with a focus on the production of metals required for the green energy transition, e.g., for the manufacturing of electric cars, solar cells, windmills, etc. The preferred regional allocation is developed markets.

    It goes without saying that the client expects an active strategy, generating an attractive risk-adjusted return both from the exposure to the theme itself as well as through the manager’s superior stock-picking skills. As to the investment style, the client is agnostic, and both growth and value strategies will be considered. Some additional guidelines specify that whereas public equity is the preferred instrument, the investor is willing to consider even private equity or royalty strategies. The potential manager is expected to exhibit a strong awareness of ESG factors and the risks inherent in this type of strategy.

    The client expects to allocate USD 100 million to the strategy, which is to be implemented by the third quarter of next year. To be qualified, a strategy needs to have at least three years of track record, either as a composite or at fund level. The firm submitting the proposal needs to have a minimum of USD 200 million in assets under management.

    Indeed, this is an exciting opportunity for stock pickers eager to explore deeper the theme of sustainable transition in this well-defined area. As the search is ongoing, they are encouraged to contact GFS for further details.

    Image courtesy of Wokandapix on Pixabay
    Julia Axelsson, CAIA
    Julia Axelsson, CAIA
    Julia has accumulated experience in asset management for more than 20 years in Stockholm and Beijing, in portfolio management, asset allocation, fund selection and risk management. In December 2020, she completed a program in Sustainability Studies at the University of Linköping. Julia speaks Mandarin, Bulgarian, Hindi, Russian, Swedish, Urdu and English. She holds a Master in Indology from Sofia University and has completed studies in Economics at both Stockholm University and Stockholm School of Economics.

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