DWS has launched an essential materials fund, with a focus on producers and developers in the mining sector.
DWS Invest Essential Materials Producers, which invests only in listed securities, will be at least 70% invested in global shares listed on either the S&P TSX Energy Transition Materials index or the S&P Global Essential Metals Producers index.
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The Luxembourg-domiciled SICAV will have an entry fee of 5% and a management fee of 1.5%.
Taylor Smith, portfolio manager of the fund and co-head of commodities and natural resources equities at DWS, said: “Energy supply, data centres and defence all face the same structural bottleneck: dependence on critical materials poses significant risks to supply chains.
“Expansion in these sectors is driven less by demand than by the availability of these materials – and it is precisely along this bottleneck that key value drivers can emerge.”
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DWS added essential materials, such as copper, lithium, aluminium and cobalt, are “at the heart of several long-term structural headwinds” including electrification, the energy transition and an increased demand for materials to build data centres.
