In a current environment marked by inflation and high volatility, which affect markets, having a consistent portfolio is crucial. Thematic equity investments can represent a great opportunity in this challenging scenario. What the outlook is for this type of investment was part of what we talked about in yesterday’s conference call.
On this occasion we had the participation of Francisco Lomba Galluzzo, Product Specialist Associate (Spain) at Global X ETFs and Beryl Bouvier di Nota, Deputy head of European Equity – Impact Investing at OFI AM.
“We see a slowdown in the global economy but there will be some opportunities in the following year such as renewable energies that will benefit from the higher growth in China. We also see a slowdown, maybe a recession. Investors should be more selective in asset allocation. However, the thematic investments will help in this scenario. We see opportunities to invest in the lithium, battery, cybersecurity, and US infrastructure sectors”.
“The key segments are Lithium Mining Companies: companies engaged in lithium mining, exploration, or other activities related to lithium. And Lithium Battery Companies: companies that produce or are involved in the production of lithium batteries. Lithium is the world’s lightest metal and is dubbed “white petroleum” due to its common usage in state-of-art batteries”.
Francisco Lomba Galluzzo, Product Specialist Associate (Spain) at Global X ETFs
“We will enter a technical recession in the European countries, this should start in Q1 2023 but on the other hand, the positive fact is inflation should peak and come down next year thanks to lower commodity prices and more normalization in the supply chain. The inflation should come down by the end of 2023”.
“The key points of the funds are that it has a double objective of performance and positive impact. The fund has a conviction-based stock-picking without any style constraint.
It also has a responsible and engaged investment approach. This means that it has an integrated multi-dimensional fundamental analysis, a sustainability investment: a minimum of 20% of turnover and a minimum of 70% of positive contribution at the portfolio level. It also has a multi-thematic social and environmental approach aligned with the SDGs”.
Beryl Bouvier di Nota, Deputy head of European Equity – Impact Investing at OFI AM.
Lithium & Battery Tech UCITS ETF
LITU seeks to provide investment results that correspond generally to the total return of the Solactive Global Lithium v2 Index. The inception date is December 07, 2021 with an AUM of US$14.489.715. The registered countries are Austria, Denmark, Finland, Germany, Ireland, and Italy among others. The fund invests 36.23% in Lithium Mining and 63.55% in Lithium Battery Technology.
The ETF invests in companies throughout the lithium cycle, including mining, refinement and battery production, cutting across the traditional sector and geographic definitions.
RS Act 4 Positive Economy Fund
The fund’s positive contributions are 79% and climate engagement as of 31/12/2021 is 61% of the companies held in the fund had submitted their targets to the SBT, and 77% of the targets set had been validated by the SBT’s Target Validation Committee.
The fund also has a responsible investment: ESG integration based on a Best-in-class analysis. SRI engagement approach with regular meetings with the companies and a Systematic voting policy for each stock in the portfolio.
