Investing in Nuclear Energy: From Uranium Mining to Reactor Technology
In this webinar, DNB Asset Management provides an in-depth introduction to DNB Nuclear Energy, a thematic passive equity fund launched in december 2024. Since its launch, DNB Nuclear Energy has delivered a strong performance, rising by more than 50 per cent in euro terms over approximately 18 months.
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Over the same period, the MSCI World Index has increased by around 15 per cent. Assets under management have grown steadily and now exceed EUR 370 million, supported by continuous net inflows.
In the webinar, host and representatives from DNB Asset Management, Johan J. Mork are joined by portfolio managers Erling S. Lie and Torstein Bostad from the Index team. They highlight that investor demand has been broad-based, spanning both retail and institutional clients. While the fund initially attracted interest primarily from Nordic investors, inflows are now coming from across Europe, reflecting a wider reassessment of nuclear energy’s role in future energy systems.
Structural demand for electricity underpins the theme
A key part of the investment case is the structural increase in global electricity demand. According to data and forecasts from the International Energy Agency (IEA), growth in power consumption is not only persistent but accelerating.
In emerging markets such as China, India and Southeast Asia, demand is driven by industrialisation and economic development. In developed markets, particularly the US and Europe, new sources of demand are emerging.
The expansion of data centres linked to artificial intelligence is a central driver, especially in the US. These facilities require reliable, continuous power supply. At the same time, electrification of transport, combined with increased heating and cooling needs linked to climate change, is adding to demand in Europe. In this context, nuclear energy stands out as a stable source of baseload power that can complement intermittent renewable generation.
Political and regulatory momentum
The webinar also highlights a notable shift in political attitudes towards nuclear energy. In the US, nuclear power currently enjoys bipartisan support, which is unusual in today’s political environment.
In Europe, sentiment has also become more constructive, reflected in the EU’s decision to classify certain types of nuclear energy as sustainable under its taxonomy framework.
In Japan, the gradual restart of nuclear facilities shut down after the Fukushima disaster points to a reassessment of nuclear energy’s role in national energy security.
These developments are closely linked to recent energy crises, including the consequences of Russia’s invasion of Ukraine, which exposed vulnerabilities in energy supply and reinforced the importance of reliable domestic power generation.
Technology, risk and the investment universe
Technological progress is another important factor. The industry is moving beyond traditional large-scale nuclear projects towards smaller, modular reactor designs. Small Modular Reactors (SMRs) are designed to be produced in factories, deployed more flexibly and equipped with passive safety features that reduce operational risk. While commercial deployment is still some years away, the technology has the potential to lower capital intensity and shorten investment horizons compared with conventional nuclear plants.
DNB Nuclear Energy is designed to capture the full nuclear value chain. The fund follows a custom-built MSCI index developed specifically for this purpose, as no existing benchmark met the required criteria. The portfolio includes uranium mining and refinement companies, industrial suppliers, utilities that own and operate nuclear power plants, and a limited exposure to technology-focused companies involved in next-generation reactor development. The index applies revenue-based criteria, meaning that companies must already generate meaningful income from nuclear-related activities. As a result, highly speculative early-stage companies without current revenues are excluded, reflecting a deliberate trade-off between thematic purity and investment quality.
Looking ahead
The combination of strong performance, accelerating electricity demand, supportive policy trends and technological innovation has renewed investor interest in nuclear energy as a long-term theme. At the same time, uncertainties remain around regulation, project timelines and technological adoption, underlining the importance of broad diversification across the value chain.
For those seeking deeper insight into the drivers, construction and rationale behind DNB Nuclear Energy, the portfolio managers go into greater detail in the webinar.
For investors who want more context and in-depth explanations, we refer to the webinar.
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