Electrifying equity: Reshaping investment opportunities in a changing world

Global markets are entering a period where shifts in power, technology and production are reshaping investment opportunities. We believe these turning points matter. They influence market cycles, redefine risk and create opportunities that transcend traditional sector categories.

At our recent Exhibiting Our Investment Artists webinar, Junaid Bray from Laurium Capital unpacked the structural forces driving change across global and South African equity markets. This is not a cycle driven by speculation; it is a decade-long rebuild of physical infrastructure, energy systems and production capacity.

A new industrial era, powered by copper

Copper is emerging as a central driver of this new industrial era. The rapid expansion of artificial intelligence (AI) and data centres is increasing the need for copper-intensive electrical systems, while the United States and Europe are beginning large-scale modernisation of ageing power grids. At the same time, global supply chains are shifting as production is reshored and regionalised and the electrification of transport, buildings and industry continues to gain momentum.

Within the Curate Momentum Equity Fund, this conviction is reflected through meaningful exposure to high-quality global miners such as Anglo American and Glencore.

Powering AI: The grid is ageing and demand is accelerating

While AI dominates headlines, the reality behind the technology is far more physical. Major technology firms such as Amazon, Microsoft, Google, Meta and Oracle are expected to invest close to half a trillion dollars yearly in AI-related capital expenditure. New data centres are being planned, built and connected across key global regions. These facilities consume up to four times more power than traditional servers. Regardless of how quickly AI evolves, the demand it creates is real and immediate. The world will require new transmission lines, substations and power-generation capacity to support the next chapter of data-driven growth.

Our approach: Electrification

To take advantage of these opportunities, Laurium Capital has been focusing on companies that provide the essential infrastructure behind AI, electrification and the modernisation of global power systems, including Quanta Services, GE Vernova, which recently separated from GE, Broadcom, and Siemens.

These companies reflect a focus on tangible enablers of global electrification and energy transformation, rather than on areas of the technology cycle that tend to be more sentiment-driven.

Back home: A strong but narrow South African market

While global structural shifts continue to shape international opportunities, South Africa’s equity market has also shown impressive performance. However, much of the rally has come from gold, platinum group metals (PGMs), major technology-linked counters such as Naspers and Prosus and the telecommunications sector.

Beyond these concentrated gains, the underlying backdrop in South Africa is steadily improving, supported by several encouraging developments:

• A stronger terms-of-trade environment driven by firm precious-metal prices and lower oil costs
• Moderating inflation and the prospect of further interest rate cuts
• Early progress in logistics reform, with increased private-sector participation
• Reduced electricity constraints
• Attractive valuations across banks, insurers and selected domestic cyclicals.

Against this backdrop, the Curate Momentum Equity Fund maintains a balance between exposure to commodities and high-conviction positions in South African financial, industrial and globally oriented businesses listed on the JSE.

Integrating global structural shifts with local opportunity

The Curate Momentum Equity Fund is designed to blend South Africa’s improving fundamentals with powerful long-term forces shaping global markets. By drawing on specialist research across both local and global sectors, the fund can identify structural changes early and position accordingly. This approach helps strengthen its resilience by reducing dependence on any single economic environment.

The fund reflects:

• High-quality opportunities within South African financial and industrial sectors
• Exposure to global electrification and large-scale infrastructure investment
• Access to copper, power and technology-driven developments that are not readily available in the local market
• A disciplined, fundamentals-based investment style.

Looking ahead

We are entering a period of profound global realignment, where power systems, data infrastructure and industrial production are being rebuilt at a scale last seen in the early industrial eras. Although AI continues to dominate headlines, the more transformative story is unfolding in the physical world: copper supply, electricity grids, substations, turbines and the advanced components needed to support accelerating digital demand.

The Curate Momentum Equity Fund is positioned to reflect these long-term shifts by combining deep local insight with global structural exposure, creating a balanced approach designed to navigate multiple market environments.

We believe investors should have access to opportunities driven by these fundamental changes through carefully constructed, disciplined and research-led investment strategies built for the long term.

For more information on the Curate Momentum Equity Fund, click here.

This document has been prepared by Curate Investments (Pty) Ltd (Curate). Curate is an authorised financial services provider (FSP No. 53549) under the Financial Advisory and Intermediary Services Act, 37 of 2002 (FAIS). This is a marketing communication. Collective investments are generally medium to long-term investments. The value of units may go down as well as up and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices. Commission and incentives may be paid and, if so, would be included in the overall costs. All performance is calculated on a total return basis, after deduction of all fees and commissions and in US dollar terms. Higher risk investments include, but are not limited to, investments in smaller companies, even in developed markets, investments in emerging markets or single country debt or equity funds and investments in high yield or non-investment grade debt. Foreign securities may have additional material risks, depending on the specific risks affecting that country, such as: potential constraints on liquidity and the repatriation of funds; macroeconomic risks; political risks; foreign exchange risks; tax risks; settlement risks; and potential limitations on the availability of market information. Investment in the Fund may not be suitable for all investors. Investors should obtain advice from their financial adviser before proceeding with an investment. This document should be read in conjunction with the prospectus of MGF, in which all the current fees additional disclosures, risk of investment and fund facts are disclosed. This document should not be construed as an investment advertisement, or investment advice or guidance or proposal or recommendation in any form whatsoever, whether relating to the Fund or its underlying investments. It is for information purposes only and has been prepared and is made available for the benefit of the investors. While all care has been taken by the Investment Manager in the preparation of the information contained in this document, neither the Manager nor Investment Manager make any representations or give any warranties as to the correctness, accuracy or completeness of the information, nor does either the Manager or Investment Manager assume liability or responsibility for any losses arising from errors or omissions in the information.