Aberdeen launches two new active ETFs to capture transforming demand for raw materials and supply chains

Aberdeen has today launched two new active ETFs designed to benefit from two themes driving profound changes in the global economy: the re-shaping of global supply chains and the transformation in demand for raw materials.

The abrdn Future Supply Chains UCITS ETF and abrdn Future Raw Materials UCITS ETF have listed on the Frankfurt Stock Exchange with an ongoing charge of 0.6% and 0.45% respectively. They are designed to give investors access to Aberdeen’s best stock ideas in the two themes in a low-cost, liquid wrapper.

Trade tensions, intensifying ‘tech wars’, and demand for new materials are reshaping where goods and services are produced across the globe. They are also increasing demand for those raw materials needed to build a greener, smarter world. Aberdeen sees exciting opportunities for investors to back those companies benefitting most from this global evolution.

Both ETFs will blend quantitative (quant) investment research capabilities with the expertise of Aberdeen’s global equity team in a hybrid approach. 

The new ETFs bolster Aberdeen’s growing “Future” range of thematic funds that play into the megatrends reshaping the world as we know it. Existing funds within the range include the abrdn Future Real Estate UCITS ETF and the abrdn SICAV I - Future Minerals Fund.

Xavier Meyer, CEO of Aberdeen Investments, said:

“Active ETFs are an exciting, growing market where we can combine our expertise in both quantitative analysis and active management. However, this is not about the latest new product trend or fashion fad: it is about offering client choice in the compelling, disruptive megatrends where we have strong conviction.

Thematic investing is hardly new, however we believe now, as these themes mature, we have a clearer picture of the long-term winners and losers from changing patterns of globalisation. As a global asset manager with a strong heritage of investing in specialist equities, we believe we are well-placed to capture these themes.

Short term uncertainties are also creating lasting opportunities. We believe now is a very exciting time for European capital markets. There’s an opening for Europe to have its “big bang moment” to boost long-term investment and innovative launches such as these can play a key part in that process.”

abrdn Future Supply Chains UCITS ETF

• The ETF invests globally in companies that are well positioned to capture value from the re-shaping of global supply chains, technologies and energy systems.
• Aberdeen’s portfolio managers identify themes and companies likely to capture value from this dynamic. They then apply fundamental and quant tools to identify and invest in the best opportunities and companies within the theme.
• Each potential stock is assessed based on three scores: a Fundamental Score (based on the stock and its exposure to key sub themes), a Future Score (based on the company's change in profitability) and a QIS Thematic Score (based on the company's valuation, quality and momentum).
• The ETF is co-managed by Blair Couper and Jamie Mills O’Brien, Investment Directors at Aberdeen, and has an on-going fee of 0.6%.

abrdn Future Raw Materials UCITS ETF

• The ETF invests in the companies involved in the exploration, mining and refinement of future raw materials.
• It focuses on 5 core materials: Copper, Aluminium, Lithium, Nickel and Rare Earth Elements.
• The investment approach leverages Aberdeen's active equity researchers globally to identify a cluster of strategic minerals whose increased use is expected to drive demand. These fundamental insights are combined with a quantitative approach using revenue data to create a portfolio with focused exposure to these materials.
• The ETF is managed by Oliver Wood-Clark, Head of Equity Index Solutions, with David Clancy, Research Director within the Quantitative Index Solutions team at Aberdeen, and has an on-going fee of 0.45%.

The ETFs are registered in Austria, Belgium, France, Germany, Ireland, Italy (professional investors only), Luxembourg and the Netherlands.

Jamie Mills O’Brien, co-manager of the abrdn Future Supply Chains UCITS ETF, said:

“The confluence of rising geopolitical tensions, intensifying trade wars and a boom in green investment are driving broad changes across global supply chains. It constitutes a profound shift that is already starting to impact large swathes of the global economy. We believe this is a theme with genuine duration, one that is likely to materially impact global equity markets over the long term. As with all major economic shifts, there will be winners and losers. Through local, on-the-ground specialists and deep global thematic analysis, we believe Aberdeen is positioned to identify those winners – whatever their size, and whatever sector or market they operate in.”

David Clancy, Quantitative Index Solutions Director at Aberdeen, said:

“Raw materials such as copper, aluminium, nickel, rare earth elements, and lithium are critical components of the technologies shaping our world – and play a pivotal role in the transition to ‘Net Zero’. With demand for these materials expected to increase significantly by 2050[1], we see strong opportunities for investors in this market. Our investment approach combines fundamental sector and supply/demand analysis with a quantitative approach to company selection and portfolio construction. We believe this approach enables us to consistently identify the most attractive segments of the materials market – and to pinpoint the companies best placed to capture these opportunities.”

[1] International Energy Agency (2022)

Media enquiries

Jemma Jackson
Head of Campaigns and Media, Aberdeen
jemma.jackson@aberdeenplc.com
07776 204 610

Marianna Hunt
Campaigns Manager, Aberdeen
Marianna.hunt@aberdeenplc.com
07442 806207

Notes to editors

Important information about the fund

abrdn Future Supply Chains UCITS ETF
Objective - To generate growth over the long-term (5 years or more) by investing in companies with alignment to the Future Supply Chains Theme.

abrdn Future Raw Materials UCITS ETF
Objective - To generate growth over the long-term (5 years or more) by investing in companies with alignment to the Future Raw Materials Theme.

Both funds are Fund is subject to Article 6 of the Sustainable Finance Disclosure Regulation ("SFDR").

Both funds are sub funds of abrdn III ICAV, an open-ended umbrella fund which is regulated by the Central Bank of Ireland and with segregated liability between subfunds registered in the Republic of Ireland (no. C469164) at 3rd Floor, 55 Charlemont Place, Dublin 2. abrdn Investments Limited is the investment manager.

The funds concern the acquisition of units/shares in a fund, and not in a given underlying asset such as a building or shares of a company. Any decision to invest should take into account all objectives of the funds. To help you understand the funds and for a full explanation of risks and the overall risk profile and the share classes, please refer to the Key Information Documents (KID) available in the local language, and Prospectus available in English, which are available at abrdn.com.

This information is intended to be of general interest only and should not be considered as an offer, investment recommendation or solicitation to deal in the shares of any securities or financial instruments. Subscriptions for shares in a fund may only be made on the basis of the latest prospectus, relevant KID. Copies of the latest annual and semi-annual reports are available online.
Details of the paying agent: EU/EEA territories in which the fund is authorised for sale: europeanfacilitiesagent@carnegroup.com or UK facilities agent: UKfacilities@carnegroup.com The Manager may terminate arrangements for marketing the fund under the Cross-border Distribution Directive denotification process.

The Prospectus also contains a glossary of key terms used in this document. A summary of investor rights can be found in English under Group Policies on the Manager’s website (https://www.carnegroup.com/wp-content/uploads/2022/03/ Carne-Group-Summary-of-Investor-Rights-1.pdf)

Carne Global Fund Managers (Ireland) Limited, registered in the Republic of Ireland (Company no. 377914) at 3^rd Floor, 55 Charlemont Place, Dublin 2. It is regulated by the Central Bank of Ireland and is the Authorised Investment Fund Manager (“the Manager”) for abrdn III ICAV.

About Aberdeen Investments

• At Aberdeen, we are focused on growing our direct and advised wealth platforms and repositioning our specialist asset management business to meet client demand. We are committed to providing excellent client service, supported by leading technology and talent.
• As at 31 December 2024, we managed and administered £511bn of our clients’ assets.
• Our Investments business is a specialist asset manager that focuses on areas where we have both strength and scale to capitalise on the key themes shaping the market, through either public markets or alternative asset classes.
• Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs.
• As at 31 December 2024, our Investments business manages £369.7bn on behalf of clients, including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.

www.aberdeeninvestments.com

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The details contained here are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any investments or funds and does not constitute investment research, investment recommendation or investment advice in any jurisdiction. Any research or analysis used to derive, or in relation to, the above information has been procured by us for our own use, without taking into account the investment objectives, financial situation or particular needs of any specific investor, and may have been acted on for own purpose. No warranty is given as to the accuracy, adequacy or completeness of the information contained in this communication and no liability for errors or omissions in such information. Readers must make assessments to the relevance, accuracy and adequacies of the information contained in this communication and make independent investigations, as they may consider necessary or appropriate for the purpose of such assessments. Any opinion or estimate contained in this communication, are made on a general basis. No information contained herein constitutes investment, tax, legal or any other advice, or an invitation to apply for securities in any jurisdiction where such an offer or invitation is unlawful, or in which the person making such an offer is not qualified to do so.

Issued by abrdn Investments Limited is registered in Scotland (SC108419) at 1 George Street, Edinburgh, United Kingdom, EH2 2LL. It is authorised and regulated in the United Kingdom by the Financial Conduct Authority and is the Investment Manager and Distributor for abrdn III ICAV