Stockholm (HedgeNordic) – During the summer of last year, one of Atlant Fonder’s funds managed by Mattias Gromark shifted its focus from precious metals to “green” metals in an attempt to capitalize on the green energy transition. Atlant Green Tech Metals has now been subject to additional changes in its fund regulations to sharpen the focus on the supply chain for green metals.
Prior to the recent fund changes, Atlant Green Tech Metals had been operating as an absolute return fund investing in companies that produce metals for the green energy transition such as copper, nickel, silver, platinum, cobalt and a number of other rare earth metals, as well as exchange-traded products reflecting the price development of these metals. “The fund’s focus is now to invest in the supply chain for green metals,” portfolio manager Mattias Gromark tells HedgeNordic. “In the whole chain from sourcing to recycling, which involves mainly investing in companies focusing on supplying the European and North American markets for electrification and energy transition.”
“In the whole chain from sourcing to recycling, which involves mainly investing in companies focusing on supplying the European and North American markets for electrification and energy transition.”
“The fund will invest in companies with products and services that contribute to achieving global goals for sustainable development, especially the goals regarding sustainable energy and combating climate change,” according to the fund’s new regulations. “Particular focus is placed on companies operating in the supply chain for sustainably produced metals, minerals and other raw materials from primary and over time increasingly from secondary (recycling) sources, mainly metals and minerals, linked to European and North American markets for sustainable energy production, energy storage and electrification.”
Following the recent set of changes to its fund regulations, Atlant Green Tech Metals is no longer described as an absolute return fund. The new goal is to generate a good risk-adjusted return over time. Despite dropping the “absolute return” label and making changes to its investment policy, the actual management of the fund will not change significantly, according to Gromark. “The linguistic changes are not considered to entail any change in substance or for the management of the fund.”
“The linguistic changes are not considered to entail any change in substance or for the management of the fund.”
Atlant Green Tech Metals is also subject to an investment restriction that requires the fund to have at least 50 percent of its assets invested in equities and equity-related financial instruments, leaving scope for Gromark to get direct exposure to metals. The fund managed by Gromark mostly escaped the market’s wrath so far this year, edging down 0.5 percent year-to-date through mid-February.