Aberdeen has today launched two new active ETFs designed to benefit from two themes driving profound changes in the global economy: the re-shaping of global supply chains and the transformation in demand for raw materials.
The abrdn Future Supply Chains UCITS ETF and abrdn Future Raw Materials UCITS ETF have listed on the Frankfurt Stock Exchange with an ongoing charge of 0.6% and 0.45% respectively. They are designed to give investors access to Aberdeen’s best stock ideas in the two themes in a low-cost, liquid wrapper.
Trade tensions, intensifying ‘tech wars’, and demand for new materials are reshaping where goods and services are produced across the globe. They are also increasing demand for those raw materials needed to build a greener, smarter world. Aberdeen sees exciting opportunities for investors to back those companies benefitting most from this global evolution.
Both ETFs will blend quantitative (quant) investment research capabilities with the expertise of Aberdeen’s global equity team in a hybrid approach.
The new ETFs bolster Aberdeen’s growing “Future” range of thematic funds that play into the megatrends reshaping the world as we know it. Existing funds within the range include the abrdn Future Real Estate UCITS ETF and the abrdn SICAV I - Future Minerals Fund.
Xavier Meyer, CEO of Aberdeen Investments, said:
“Active ETFs are an exciting, growing market where we can combine our expertise in both quantitative analysis and active management. However, this is not about the latest new product trend or fashion fad: it is about offering client choice in the compelling, disruptive megatrends where we have strong conviction.
Thematic investing is hardly new, however we believe now, as these themes mature, we have a clearer picture of the long-term winners and losers from changing patterns of globalisation. As a global asset manager with a strong heritage of investing in specialist equities, we believe we are well-placed to capture these themes.
Short term uncertainties are also creating lasting opportunities. We believe now is a very exciting time for European capital markets. There’s an opening for Europe to have its “big bang moment” to boost long-term investment and innovative launches such as these can play a key part in that process.”
abrdn Future Supply Chains UCITS ETF The ETF invests globally in companies that are well positioned to capture value from the re-shaping of global supply chains, technologies and energy systems. Aberdeen’s portfolio managers identify themes and companies likely to capture value from this dynamic. They then apply fundamental and quant tools to identify and invest in the best opportunities and companies within the theme.
Each potential stock is assessed based on three scores: a Fundamental Score (based on the stock and its exposure to key sub themes), a Future Score (based on the company's change in profitability) and a QIS Thematic Score (based on the company's valuation, quality and momentum). The ETF is co-managed by Blair Couper and Jamie Mills O’Brien, Investment Directors at Aberdeen, and has an on-going fee of 0.6%. abrdn Future Raw Materials UCITS ETF The ETF invests in the companies involved in the exploration, mining and refinement of future raw materials. It focuses on 5 core materials: Copper, Aluminium, Lithium, Nickel and Rare Earth Elements. The investment approach leverages Aberdeen's active equity researchers globally to identify a cluster of strategic minerals whose increased use is expected to drive demand. These fundamental insights are combined with a quantitative approach using revenue data to create a portfolio with focused exposure to these materials. The ETF is managed by Oliver Wood-Clark, Head of Equity Index Solutions, with David Clancy, Research Director within the Quantitative Index Solutions team at Aberdeen, and has an on-going fee of 0.45%. The ETFs are registered in Austria, Belgium, France, Germany, Ireland, Italy (professional investors only), Luxembourg and the Netherlands.
Jamie Mills O’Brien, co-manager of the abrdn Future Supply Chains UCITS ETF, said: “The confluence of rising geopolitical tensions, intensifying trade wars and a boom in green investment are driving broad changes across global supply chains. It constitutes a profound shift that is already starting to impact large swathes of the global economy. We believe this is a theme with genuine duration, one that is likely to materially impact global equity markets over the long term. As with all major economic shifts, there will be winners and losers. Through local, on-the-ground specialists and deep global thematic analysis, we believe Aberdeen is positioned to identify those winners – whatever their size, and whatever sector or market they operate in.”
David Clancy, Quantitative Index Solutions Director at Aberdeen, said: “Raw materials such as copper, aluminium, nickel, rare earth elements, and lithium are critical components of the technologies shaping our world – and play a pivotal role in the transition to ‘Net Zero’. With demand for these materials expected to increase significantly by 2050[1], we see strong opportunities for investors in this market. Our investment approach combines fundamental sector and supply/demand analysis with a quantitative approach to company selection and portfolio construction. We believe this approach enables us to consistently identify the most attractive segments of the materials market – and to pinpoint the companies best placed to capture these opportunities.”
