19.10.2022 | reading time

Christian Mallek recommends the Structured Solutions Next Generation Resources Fund

Note: This text is a translation from the original language, German.

The trend towards renewable energy is unbroken. The fact that internal combustion engines are on the way out and the sale of electric cars has reached a record this year speaks a clear language. The name of the fund we are introducing is also clear. We hold it as part of the ESG component in our Sigavest Asset Management Fund. Structured Solutions Next Generation Resources (ISIN: LU0470205575)
invests in companies from the Rawmaterial sektor, which extract so-called next-generation raw materials. These are primarily raw materials needed for future technologies, medical progress, and demographic changes.

Fund manager Tobias Tretter from Commodity Capital places a strong focus on lithium companies, which make up around 58 percent of the fund's weighting. Another 15 percent is allocated to energy metals, followed by silver, base metals, and gold. An investment in the Structured Solutions Next Generation Resources Fund has historically been associated with high volatility. Investors had to endure a maximum drawdown of 75 percent at one point. However, they were rewarded with a ten-year return of 246 percent, equivalent to an average annual performance of over 13 percent. Long-term prospects for this investment sector appear promising. To mitigate fluctuations, a staggered entry is recommended, such as through savings plans.

Read here the complete article in "Das Investment" (available only in German)