- More than four out of five institutional investors and wealth managers expect uranium price to increase in the year ahead
- Almost all professional investors expect a rise in governments worldwide investing in nuclear power plans
- HANetf’s uranium miners ETF provides exposure to physical uranium and uranium miners and was created in partnership with sector experts Sprott Asset Management
January 2023, London
Professional investors expect the price of uranium to rise in the year ahead as more governments worldwide back nuclear power plants, new research[1] by HANetf, Europe’s first independent white-label ETF and ETC platform, and leading provider of thematic ETFs, and crypto and commodity ETCs shows.
Its study with institutional investors and wealth managers responsible for $67.1 billion assets under management found 81%[2] expect the price of uranium to increase in the year ahead with 20% predicting it will increase dramatically.
Uranium was one of the best-performing asset classes in 2022 but the study with institutional investors and wealth managers shows recent decisions by governments in Japan, Germany, Belgium, France and India and UK to invest in nuclear power is adding to the momentum.
Nearly nine out of 10 (86%)[3] of the institutional investors and wealth managers questioned in Germany, Switzerland, Italy and the UK say government announcements are positive for the price of uranium. Around 15% say it is hugely positive.
Almost all (98%)[4] expect more governments worldwide to announce plans to invest in nuclear power plants while 95%[5] agree that government policies are shifting in favour of nuclear energy as an ideal complement to renewable energy sources. Nuclear energy is seen as more reliable, efficient, clean, safe and secure than other energy sources.
The Sprott Uranium Miners UCITS ETF (URNM), which HANetf launched in partnership with Sprott Asset Management, highlights that the International Energy Agency has increased its forecasts for nuclear energy generation growth to 84% by 2050 based on announced government targets worldwide. Generation could double by 105% based on the IEA net zero emissions scenario. [6]
Hector McNeil, co-CEO and co-Founder of HANetf comments:
“Professional investors are confident that the price of uranium will continue to rise which given that it has been one of the best-performing asset classes points to a positive future for investment in the sector.
“Coupled with the growing support from governments worldwide for investing in nuclear energy there is strong support for the price of uranium which is ultimately supportive of uranium miners.
“Uranium miners have historically exhibited low or moderate correlation to many major asset classes, potentially providing portfolio diversification.”
URNM, which tracks the North Shore Sprott Uranium Miners Index, was launched in May and provides investors with a way to access the growth of nuclear power through exposure to uranium miners. Alongside uranium mining equities, the ETF invests in physical uranium through investment trusts.
Sprott Asset Management are global experts in the uranium space, overseeing a US-listed sister uranium miners ETF with around $700 million AUM[7] and a physical uranium trust with almost $3bn AUM. [8]
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