The sheer scale of global government support throughout the pandemic – buoyed by reaction to the Covid-19 pandemic – has helped stimulate a synchronised global recovery. While there have been massive spending pledges into areas such as building out new schools, airports and transport links, there is also an increasing focus on sustainable infrastructure areas such as renewable energy, which is creating some attractive new prospects for investors.
The trend towards addressing climate change and investing more sustainably means a lot of investment is being put towards renewable energy, electric vehicles and battery manufacturers. There are also opportunities evolving in the semiconductor space, and there will be broader beneficiaries of this trend beyond just building construction, bricks-and-mortar operations.
One of these beneficiaries is copper – an essential electronic component in high demand for its use in electric vehicles and renewable energy particularly – which is becoming increasingly scarce. We believe it has the potential to become ‘the new oil’ of this investment climate.
Suzanne Hutchins, investment manager and team leader of the Newton Real Return team.