Assets under management (AUM) for the RobecoSAM Smart Materials fund have more than doubled over the last 12 months, from USD150m to USD340 million.
Over the last five years, the fund has returned 53.15 per cent compared to the MSCI Materials Index which returned 8.02 per cent.
The fund, managed by Pieter Busscher, has attracted investors who recognise that increasing pressure on natural resources coupled with human ingenuity is driving greater demand for the development of substitute materials. With advanced technology, significant production gains are achievable and many companies are successfully providing solutions to the challenge of resource scarcity.
The RobecoSAM Smart Materials fund invests in companies which provide technology, products or services relating to the extraction and efficient handling of raw materials, recycling of used resources and innovative alternative ‘smart’ materials. It is an alternative to traditional resources funds and offers exposure to solutions to resource scarcity. It focuses on innovative materials that substitute traditional ones and process technologies that deliver efficiency gains in resource utilisation. The fund’s current four main investment themes are robotics, 3D printing, lightweight materials and lithium.
Pieter Busscher, manager of the RobecoSAM Smart Materials Fund, says: “Investors are increasingly looking for alternative investment solutions to the traditional resources sector, as equities and commodity prices declined throughout 2014 thanks to market uncertainties and increased supply.
“We have now reached the inflection point for many resources where the development of substitute materials and productivity gains will play an increasingly important role in the effort to cope with resource scarcity. Investments in these areas are expected to provide stable and attractive long term returns for investors.”
Harry Dickinson, managing partner at Harrington Cooper, the fund’s UK distribution firm, says: “We are seeing strong demand for the fund from UK fund selectors who are looking for ways to diversify their portfolios and move away from traditional resources. The fund’s impressive track record is testament to the increasing investment opportunities found in the ‘smart’ materials sector and the first-class management of the fund.”
Top holdings in the RobecoSAM Smart Materials fund include Security, Hexcel, IPG Photonics and 3M.
