Liontrust Sustainable Future Defensive Managed Fund on Wheaton Precious Metals
Thesis
Liontrust added Wheaton Precious Metals for its streaming model, which supplies financing to mining companies in exchange for the right to buy future precious-metal production at predetermined prices. Its exposure to mines producing copper, zinc, nickel and related materials provides an indirect connection to the energy transition. The fund also places value on rigorous environmental and social due diligence when evaluating counterparties and responsible mining practices. Liontrust devoted a separate management call to these concerns before investing.
“Before investing, we had a dedicated hour-long call with the company focusing exclusively on environmental and social risks.”
Key risks
- Environmental and social risks at mining partners.
- Commodity-price and energy-market volatility affecting the underlying projects.
- Dependence on miners and counterparties successfully producing contracted metals.