“They are used in things like your smart device – that’s right, electric vehicles, solar power,” Magoon said.
Underlying components must derive 50% or more of their revenue, or be in the top five and have at least 10% of global market share, of any advanced battery material. The portfolio managers also weight companies by screening the current balance between supply and demand for each Advanced Battery Material, forecasted demand growth, commodity price outlook, likelihood of new supply discovery and regulatory and geo-political risk.
Furthermore, allocations may be tactically adjusted based on the financial fundamentals of a company; the inventory and reserves of an Advanced Battery Material relative to its price; a company’s Environmental, Social and Governance (ESG) score; and the discovery of new reserves or other causes of increased or new Advanced Battery Material production.
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