Brazil-based independent asset manager Vitreo recently launched a fund for individuals to invest in copper, according to the media. Due to the increasing demand for a greener economy, global investors are said to view the copper sector to be highly attractive.
Jojo Wachsmann, the chief investment officer of Vitreo, said in a media statement that the recent surge in the prices of copper is because of a supply crisis and an increase in demand. Due to the Covid-19 pandemic, copper mines were closed and limited production. As the post-pandemic economic recovery has begun to strengthen abroad, the company faces a shortage of metal supply.
Jojo further stated that “In addition to being an old and resistant metal, until today we have had no substitutes for copper, whether in the area of civil construction, electronics, transportation equipment, consumer goods or industrial machinery.” Individuals can now invest in the Vitreo Cobre fund with a minimum amount of $188. The fund also charges a 0.9 percent administration fee per year and an exemption from the performance fee. Copper is widely used in batteries and other energy accumulators. The fund can benefit individuals investing in electric cars as their components heavily rely on copper.
According to the company, the fund investors will be exposed to the electric vehicle revolution, recovery of the global economy, worldwide initiated infrastructure programme, renovation of homes in the US, and increased demand for copper in China. Vitreo is focused on thematic funds and plans to expand its products linked to metallic commodities. It is to note that the company already holds gold, silver and uranium funds.