Liontrust Sustainable Future Defensive Managed Fund on Altius Minerals
Thesis
Liontrust bought Altius Minerals for its royalties and streaming interests in mining and renewable-energy projects. The model lets Altius participate in rising asset values and production revenue without directly operating mines or energy projects. Its portfolio provides exposure to copper, lithium and renewable electricity as well as nickel, cobalt, potash and iron ore. The fund sees this as a diversified route to benefit from demand for materials and infrastructure supporting the energy transition.
“Its royalty model allows it to benefit from the increasing value of these assets without taking on the costs and operational risks of running them directly.”
Key risks
- Changes in commodity prices affecting the value of underlying mineral royalties.
- Dependence on the production and development of third-party mining and renewable-energy projects.
- Slower deployment of energy-transition infrastructure reducing demand for certain underlying materials.