OPM has been positive on uranium markets for over a year and has benefited from two direct equity holdings in the sector. It has sold out of these in favour of the structured product, which provides 184 per cent of the upside of a global basket of five uranium-related stocks with built-in capital protection.
Uranium is a key basic material for the development of nuclear technology and has been growing as an investment theme. Artemis also has exposure to the commodity through a long-term holding in the Geiger Counter investment trust.
OPM believes uranium has plenty of growth potential despite concerns over the perceived risks of nuclear power. It says nuclear power does not produce greenhouse gases and, unlike ethanol and biofuels, will not push up food prices by diverting farm produce to fuel production.
Business development manager Richard Carswell says: “The issue of nuclear energy is a socially divisive argument but we are already beginning to see nuclear installation in Asia and in Europe people are beginning to think it makes sense. We feel the argument in favour of nuclear fuel has got hold.”