Resource transformation
Invest in the ways we utilise energy and resources to meet our future needs.
With investment, your capital is at risk.
What is the Resource transformation theme?
As the global population has risen, so has our demand for energy and resources. In recent years, the way we use resources has also shifted to meet changing consumer demands and national policy shifts towards a lower carbon future.
This theme aims to provide exposure to companies that will participate in these changes and service our energy and material needs in the future. This includes the next generation of energy production, which includes renewables and non-renewables, the mining of metals and materials needed for mass-market electrification, and the treatment and transportation of water.
Why consider investing in this theme?
What does this portfolio invest in?
A portion of this portfolio invests in a collection of exchange traded funds (ETFs) that tilt towards the theme of Resource transformation. The portfolio invests across several sectors that our expert investment team believe are likely to benefit from the development of this theme over the long-term. These include:
- Energy: The drive towards a low or zero carbon future supports the rise of renewables, such as wind, solar, and hydro, as well as non-renewables like nuclear energy. Demand for electricity is set to skyrocket, driven by the continued rise in the number and types of electric vehicles, and the needs of growing populations across the world.
- Materials: Digital technologies, electronics, and electric transport are supercharging demand for metals and minerals. These include copper, silver, nickel, and lithium. Total mineral demand could hit record levels by 2040.
- Water: Clean water is paramount for our health and the production of many goods and services. However, it is a scarce resource, and global demand for clean water is projected to rise considerably in the coming decades. Investment in water treatment and fresh water sources is therefore paramount. The transportation of water is also critical, and investment in distribution networks is set to increase over the coming years.
The ETFs we have selected are closely to aligned to these areas and meet the standard requirements we set out as part of our broader investment process.
How is this portfolio managed?
Our investment team actively manages the majority of your globally diversified portfolio, making frequent adjustments based on news, data and analysis. The Thematic portion of your portfolio is solely focused on your chosen theme and requires less frequent intervention, although it will be regularly rebalanced and reviewed at least annually.
Portfolio allocation
- Asset allocation
- Countries allocation
The allocation of assets within a chosen portfolio will vary depending on your chosen risk level and investment style. Your portfolio will typically hold a large majority in equities and invest the balance in bonds to help dampen the ups and downs of the portfolio.
Capital at risk.
What other themes are available?
Technological innovation
Invest in technological advances and innovation driving the modern world. With exposure to the:
Evolving consumer
Invest in the evolving demands and needs of our global population. With exposure to the:
Learn more about Thematic investing
Thematic portfolios are here
Four reasons to consider Thematic investing
How to become a Thematic investor
Most people ask us
Is this a sustainable portfolio?
Is this a sustainable portfolio?
The Resource transformation theme does not incorporate environmental, social and governance (ESG) considerations. This theme will likely have exposure to a variety of renewable and non-renewable materials and energy sources.
For those looking to incorporate ESG considerations into their investment portfolio, we'd recommend looking into our socially responsible portfolios.
What’s the difference between this portfolio and the Socially responsible portfolio?
What’s the difference between this portfolio and the Socially responsible portfolio?
This portfolio is split into two portions. One portion is tilted towards the theme of Resource transformation. This portion invests in ETFs that focus on the energy transition, minerals and materials, and clean water. This portion of the portfolio requires less frequent intervention from our investment team, and is rebalanced at least annually. The remaining portion of the portfolio is not tilted towards the theme of Resource transformation. It is globally diversified and actively managed by our investment team.
Our Socially responsible (SRI) portfolios are not split into two portions. Instead the whole portfolio places an emphasis on investments in companies and bond issuers that take into account certain environmental, social and governance considerations. We invest SRI portfolios in ETFs that avoid companies engaged in controversial activities, and focus on those that lead their peers on ESG. The whole portfolio is actively managed on an ongoing basis, rebalanced when necessary, and monitored by our investment team.
To compare all five of our investment styles, click here.