· 92% of wealth managers expect to increase their exposure to clean energy in the next 12 months, and 88% reported they had recently invested in nuclear energy or uranium focused funds.
· The results are published in the second edition of HANetf’s Thematic Review, subtitled The Global Energy Blackout & ETF Solutions.
· The survey also revealed that 80% of the wealth managers expect to increase their exposure to thematic funds over the next 12 months.
· Best performing themes over the last 4 months were energy related: solar, clean energy, smart & distributed energy, uranium miners, and midstream energy.
· HANetf has the most extensive range of thematic ETFs available in Europe.
October 2022, London HANetf, Europe’s first independent white-label ETF and ETC platform, and leading provider of thematic ETFs, and crypto and commodity ETCs, is pleased to announce that it has published its second Thematic Review of 2022 covering May to September.
As part the latest Thematic Review, subtitled The Global Energy Blackout & ETF Solutions, HANetf conducted an extensive thematic survey of 50 wealth managers.
The results indicated that 92% expect to increase their exposure to clean energy over the next 12 months. Given the ongoing war in Ukraine, and the subsequent need to reduce reliance on Russian fossil fuels, it seems investors are looking to invest in alternative sources of energy.
This is further supported by the fact that 88% of the respondents said that they had recently invested in nuclear energy or uranium focused funds. While nuclear energy is not renewable, it is increasingly viewed as clean given its relatively low carbon emissions. Moreover, in July the EU Parliament voted to back the labelling of nuclear energy as “green”, and thus a valid contributor in the transition to net-zero. The Russian Ukraine war has largely changed the “green” narrative around nuclear power, sparking significant investor interest.
More generally, 80% of the wealth managers said that they planned to increase their exposure to thematic funds over the next 12 months, with 74% reporting increased interest in thematic investing from their clients.
The Thematic Review covers the second third of 2022, spanning May to August, and contains unique insights into thematic investing.
Konrad Sippel, Head of Research at Solactive explains how to construct a thematic index. There are two distinct steps in creating the next hot thematic index, he argues. Firstly, you need to identify the next topic or theme that investors desire access to. Once the theme is clear, the next step is to build the index rules that will ultimately construct the portfolio to track the theme in a transparent, efficient, and rules-based manner.
Andy Merricks, portfolio manager of the IDAD Future of Wealth Fund argues that investors should allocate on a thematic rather than geographic basis. He asks: does it really make sense to allocate capital to funds simply based upon the country in which companies are listed?
In the second third of 2022, HANetf launched two new thematic ETFs, beginning with a partnership with Grayscale, the world’s largest digital currency asset manager, to launch the Grayscale Future of Finance UCITS ETF (GFOF). GFOF provides exposure to companies at the intersection of finance, technology, and digital assets, that are expected to build the digital economy of the future. Furthermore, HANetf launched Sprott Global Uranium Miners UCITS ETF (URNM) with uranium experts Sprott Asset Management. The new ETF allows investors to access the growth of nuclear power, and its increasing role in the energy transition, through exposure to uranium miners. URNM has seen strong growth, with AuM reaching $25m since launch. The ETF was also recently awarded ETF of the month In September by ETF Stream.
Hector McNeil, co-CEO and co-Founder of HANetf comments: “We are thrilled to be publishing HANetf’s second Thematic Review, giving investors an in-depth look at the latest developments in the world of thematic ETFs. As the survey results in the Thematic Review show, investing in alternative energy sources is at the forefront of investors’ minds, and many of them are looking to increase their exposure to thematic funds. At HANetf we believe that providing timely and high-quality research and content is a must for any ETF issuer today. The Thematic Review will sit alongside the Monthly Reports we publish for each of our ETFs as vital reading for any investor.”
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HANetf is an independent provider of UCITS ETFs, working with asset management companies to bring differentiated, modern, and innovative exposures to European ETF investors. Via our white-label ETF platform, HANetf provides a complete operational, regulatory, distribution and marketing solution for asset managers to launch and manage UCITS ETFs.