PA Key Transition Metals
Metals are likely to play a crucial role in the clean energy transition. Unsurprisingly, growth in low-carbon technologies such as rechargeable batteries would lead to a growth in demand for their raw material components. Metals such as cobalt, nickel, and lithium are essential components in many current and developing battery technologies.
However, these key metals are often sourced from environmentally and socially sensitive regions such as South American mountainous deserts, arctic regions in Russia, or the Democratic Republic of Congo (DRC) or Pacific islands’ tropical biomes. If not well managed, the often resource and pollution-intensive nature of large-scale industrial mining may exacerbate social and environmental challenges where they are mined.
Consequentially, growth of low-carbon technologies may be associated with not just metals such as cobalt, nickel, copper, and lithium but also a variety of key environmental, social, and governance (ESG) challenges.
Avoidance of the metals sector altogether may mean missing out on an area of future growth driven by the energy transition. This product offers exposure to key transition metals mining companies while ensuring an ESG compliant equity selection. Our ESG strategy is active which means we continuously adapt to maturing standards in ESG research.
Increasing demand for low-carbon technologies such as rechargeable batteries would lead to a growth in demand for their raw material components.
The Metals&Minings Sector naturally exhibits elevated ESG risks. This product seeks to minimize these risks.
This investment will allocate money to ESG-compliant firms that engage in the sourcing of key metals needed for the transition to low carbon economy.
Our product offers the opportunity for portfolio diversification through indirect exposure to metals prices.
Our product offers exposure to 25 companies of the MSCI Metals & Minings Index while attempting to achieve higher risk-adjusted returns.
Our product minimises risk compared to other products in this space.
The Picard Angst ESG+ Equity Key Transition Metals note pursues a strategy that minimizes investment & ESG risk compared to other products in this space. It offers diversification for investors through its indirect exposure to metals prices that typically only weakly correlate with the broader equity market. In the last 5 years, this strategy has offered significantly higher risk-adjusted returns than relevant benchmarks.
|Product||PA Key Transition Metals|
|Maturity in years||5|
|Coupon||Equity Index Tracker (no coupon)|
|Issuer||UBS Zurich AG|
|Subscription period||October 14th 2022|
This content has been prepared by Picard Angst AG and is only a summary of the main features of the product and not a complete presentation and has been prepared solely for information purposes for use by the recipient for the duration of the subscription period. The information provided is valid only for this period. The information in this page does not constitute financial research and does not meet all legal requirements to ensure the impartiality of financial research and is not subject to any prohibition on trading prior to the publication of financial research. This page does not constitute an offer or invitation to buy or sell financial instruments. It is intended for informational purposes only. Given that an investment product can be a complex financial product, the decision to invest should therefore always be based on a consultation with a bank advisor. The information provided on this page on opportunities and risks is no substitute for the information provided by your investment advisor, which is always indispensable before concluding a transaction. Only those who are clear about the opportunities and risks of the transaction to be concluded and who are economically able to bear the losses that may occur should enter into such transactions.