Key Takeaways
- • Tema Alternative Asset Managers ETF holds 1,100 shares of 3i Group PLC (LSE:III) valued at £49,250 as of February 28, 2026, representing 2.44% of the ETF's stock portfolio.
- • The position is underwater by £22,813, reflecting a -41.38% loss since initial purchase in Q4 2025, with the current share price at £21.12 compared to an average selling price of £32.45 on partial liquidation.
- • 3i Group shares have declined sharply, down -47.46% over the past 12 months with a 52-week range between 1,825p and 4,496p, driven by weaker-than-expected sales performance at Action, its largest portfolio investment.
- • Despite near-term weakness, 3i Group maintains a strong balance sheet with £1.86 billion in liquidity, net debt of £547 million, and a £20 billion fund size, with BlackRock (9.1%), Capital Research (6.0%), and GIC Private Limited (5.4%) as major institutional shareholders.
Summary
Tema Alternative Asset Managers ETF's position in 3i Group PLC represents a significant underperformance within its portfolio. As of the most recent reporting date of February 28, 2026, the ETF held 1,100 shares valued at £49,250, representing 2.44% of total stock holdings. The position originated in the fourth quarter of 2025, followed by a partial exit at an average price of £32.45 per share for 280 shares, indicating an initial overweight that the fund has since trimmed.
The investment has deteriorated sharply, with an estimated loss of £22,813 or -41.38% from entry to current levels. This underperformance reflects broader weakness in 3i Group's equity, which has declined -47.46% over the trailing 12-month period. The company's fiscal 2026 results revealed weaker-than-expected sales at Action, its largest investment holding, which triggered a sharp market reaction including a 14% intraday decline. Geopolitical uncertainty in the Middle East has compounded these pressures, impacting near-term sentiment on the diversified private equity and infrastructure firm.
Despite the near-term equity underperformance, 3i Group's fundamental position remains relatively resilient. The firm maintains £1.86 billion in available liquidity and net debt of only £547 million, providing substantial financial flexibility. The company harvested £1.9 billion in cash proceeds during the fiscal year, demonstrating active portfolio management and capital deployment capability. Annual results showed total shareholder return of £5.30 billion (22%), with net asset value increasing to 3,030p from 2,542p, suggesting the underlying portfolio is performing adequately despite broader market concerns around specific holdings like Action.
Institutional ownership of 3i Group remains concentrated among large asset managers, with BlackRock holding 9.1%, Capital Research and Management Company at 6.0%, and GIC Private Limited at 5.4%, indicating continued conviction from sophisticated investors despite recent weakness. The divergence between Tema Alternative Asset Managers' position entry and current market levels underscores the cyclical nature of private equity valuations and the timing sensitivity of equity exposure to diversified alternative asset managers.
The investment has deteriorated sharply, with an estimated loss of £22,813 or -41.38% from entry to current levels. This underperformance reflects broader weakness in 3i Group's equity, which has declined -47.46% over the trailing 12-month period. The company's fiscal 2026 results revealed weaker-than-expected sales at Action, its largest investment holding, which triggered a sharp market reaction including a 14% intraday decline. Geopolitical uncertainty in the Middle East has compounded these pressures, impacting near-term sentiment on the diversified private equity and infrastructure firm.
Despite the near-term equity underperformance, 3i Group's fundamental position remains relatively resilient. The firm maintains £1.86 billion in available liquidity and net debt of only £547 million, providing substantial financial flexibility. The company harvested £1.9 billion in cash proceeds during the fiscal year, demonstrating active portfolio management and capital deployment capability. Annual results showed total shareholder return of £5.30 billion (22%), with net asset value increasing to 3,030p from 2,542p, suggesting the underlying portfolio is performing adequately despite broader market concerns around specific holdings like Action.
Institutional ownership of 3i Group remains concentrated among large asset managers, with BlackRock holding 9.1%, Capital Research and Management Company at 6.0%, and GIC Private Limited at 5.4%, indicating continued conviction from sophisticated investors despite recent weakness. The divergence between Tema Alternative Asset Managers' position entry and current market levels underscores the cyclical nature of private equity valuations and the timing sensitivity of equity exposure to diversified alternative asset managers.
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