TB Amati Strategic Metals Fund
Investing in a broad range of base metals, the active, high conviction TB Amati Strategic Metals Fund creates a fresh and exciting opportunity for those looking to diversify their portfolios and invest in the transition to clean, sustainable energy sources and a lower carbon world. The Fund seeks to deliver long-term capital growth by investing in a well-diversified portfolio of internationally listed metals and mining companies – listed in London (FTSE, AIM), US (NYSE, Nasdaq), Canada (TSX, TVE, VSE) and Australia (ASX), and whose primary revenues are derived from ‘strategic metals’, metals with a limited substitution threat and which Amati deems to be of strategic importance to the global economy and numerous long-term structural growth themes. These include, but are not limited to gold, silver, copper, lithium, nickel, manganese, platinum group and rare earth metals.
The Managers - Dual Expertise
The fund is managed by Georges Lequime and Mark Smith who boast decades of experience investing in mining companies and many years of operational experience in mining and geology. The pair combine strong technical and industry knowledge with proven financial modelling and portfolio management skills. Georges Lequime, a mining engineer with 26 years’ experience in fund management and investment banking, spent four years in gold mining in South Africa. Mark Smith meanwhile has 18 years’ experience in investment banking and company valuations and spent five years in West and East Africa in gold exploration – and it is the global network of CEOs and CFOs, brokers, commodity traders, mining engineers and geologists they have built which is responsible for so many of the opportunities they unearth.
Why Metals, Why Now?
The extraordinary level of quantitative easing seen in recent times has given investors good reason to hold gold, but policy will change - so, whilst the managers remain positive on precious metals, the demand for specialist metals will continue to grow as we transition to a lower carbon world and move away from fossil fuels. Energy distribution power grid infrastructure is dependent on copper, just as energy storage for industrial use and battery technology is on lithium and electrification is on both nickel and copper – and the managers see exciting investment opportunities in these areas.
Through the Cycle Investing
Each metal has its own cycle. The managers aim to provide actively managed exposure ‘through the cycle’ and will look to determine the optimum combination of precious, speciality and base metals at any given time, in keeping with the transition to clean energy, electric vehicles and other long-term structural growth themes – taking account of the over-arching macro-economic and political risks and commodity price movements, as well as the specific circumstances of individual companies.