Ofi Invest Energy
Strategic Metals
Key metals in tomorrow’s energy
From agriculture to manufacturing to medicine, metals have become a must in today’s world. The race for technology and the energy transition is expected to boost demand in the coming decades.
At Ofi Invest Asset Management, our managers, who have been experts in this field for more than 20 years, have selected eight metals they regard as strategic and that offer long-term investment opportunities: copper, silver, nickel, palladium, platinum, aluminium, zinc and lead.
Metals: a market of opportunities to seize in a long-term allocation
21st century lifestyles depend on metals
Did you know?
The race for technology and the energy transition are behind the exploitation of almost all 86 metals in the periodic table of elements, up from about 10 in the 20th century.
ILLUSTRATION OF THE INCREASED NUMBER OF METALS IN USE BASED ON TECHNOLOGICAL TRENDS
Source: Van Schaik and Reuter, Géosciences, n°15
Metals consumption by digital technologies: still far from total dematerialisation
Metals consumption by digital technologies: still far from total dematerialisation
Energy
Wind turbines, solar panels, hydrogen, etc.
Transports
Cars, trucks, planes, trains, and boats
Buildings
Construction materials, etc.
Medicine
Development of new medical equipment
Communication
Mobile phones, computers, etc.
Agriculture
Fertilisers and farming equipment
The energy transition is expected to consume lots of metals
FUTURE DEMAND FOR MINERALS FOR CLEAN TECHNOLOGIES BY SCENARIO (2020 VS 2040)
Source: IEA (International Energy Agency), 2021
Why choose Ofi Invest Energy Strategic Metals?
Diversify your portfolio with strategic metals
- Exposure to metals deemed strategic by the management team in transforming our energy system
- An original and diversifying investment solution (compared with more traditional asset classes) that is eligible for life insurance contracts(1)
- No investments in sector equities or bonds
The subfund is exposed to commodity prices through commodity index swaps. A decline in the commodities markets or worsening in exogenous conditions (storage conditions, weather, etc.) could cause a decline in the subfund’s net asset value.
A well-regarded team of experts
A management team recognised for more than 20 years on the metals and commodities markets
The management team is subject to change over time.
A long-term investment theme
- The shift in our energy systems is expected to consume lots of metals
- Growing demand will be driven by global decarbonisation challenges
Performance is not guaranteed for subscribers. There is a risk of loss of capital.
(1) The investment objective is to provide fundholders with exposure to the following metals: aluminium, lead, gold, palladium, platinum, silver, nickel, zinc and copper, in accordance with the fund’s name and management strategy. This objective will be achieved via synthetic exposure to the Basket Energy Strategic Metals Index or an index having the same composition. This index is representative of a basket consisting of futures contracts on these metals. The subfund will reproduce shifts in this index, both upwards and downwards.
What the fund managers have to say
THE DEVELOPMENT OF CLEAN TECHNOLOGIES IS BOOSTING DEMAND FOR METALS
Renewable energies consume more metals and conventional energy technologies (nuclear, coal, etc.). In a scenario in which we comply with the Paris Agreement’s goals on greenhouse gas reductions, demand for copper could rise by 40% and demand for nickel by 60% to 70% by 2040 (International Energy Agency report, May 2021).
The situation is becoming critical for many metals used intensively in many industrial applications and for which substitutes are hard to find in the short term. As reserves are limited and production is concentrated geographically, operating costs are rising, pushing metal prices up and, hence, generating investment opportunities on these markets.
Measures to combat climate change could raise metal prices and generate investment opportunities.
BENJAMIN LOUVET
Head of Commodities Strategies,
Ofi Invest Asset ManagementT
Head of Commodities Strategies,
Ofi Invest Asset ManagementT
Refer to the fund’s characteristics & documents for more details on its risks, fees and characteristics.
News related to the fund or its theme
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20/05/2024
This marketing document has been produced by Ofi Invest Asset Management, a portfolio management company (APE Code: 6630Z) governed by French law and certified by the French Financial Markets Authority (AMF) under n° GP 92-12 – FR 51384940342. It is a société anonyme [joint-stock company] supervised by a board of directors with authorised capital of 71,957,490 euros; its registered office is located at 22, rue Vernier 75017 Paris, France; and it is entered into the Paris Registry of Trade and Companies under number 384 940 342. Before investing in any of the funds presented in this marketing document, all investors are strongly urged to review their personal situation and the benefits and risks of investing in order to determine the amount that is reasonable to invest, but without basing themselves exclusively on the information provided in this marketing document. It is possible that the funds presented herein are not registered in all jurisdictions. The funds may be subject to restrictions regarding certain persons or in certain countries by virtue of national regulations applicable to such persons, or in such countries. This marketing document offers no assurance that the products or services presented herein will be suited to investors’ situation or objectives and constitutes neither a recommendation, nor advice, nor an offer to buy the financial products mentioned. Ofi Invest Asset Management refuses to accept any liability for any damages or losses resulting from the use of any or all of the information contained herein. This marketing document contains informational items and figures that Ofi Invest Asset Management regards as well-founded or accurate on the day on which they were researched. No guarantee is offered regarding information or figures from public sources. The analyses presented herein are based on the assumptions and expectations of Ofi Invest Asset Management at the time this document was written. It is possible that some or all of these assumptions and expectations may not be borne out in market performances. They do not constitute a commitment to performance and are subject to change. The value of an investment on the markets may fluctuate upwards or downwards and may vary with shifts in exchange rates. As they are subject to the economic situation and to market risks, no guarantee is offered that the products or services presented herein will achieve their investment objectives. Past performances are not a reliable indicator of future performances. The Key Investor Information Document (KIID) and the prospectus are offered to fund subscribers prior to, and upon, subscription; said documents, along with the latest financial statements, are publicly available on request from Ofi Invest Asset Management.