Guinness Global Real Assets Fund on VINCI SA
Thesis
Guinness owns Vinci for its concessions and construction exposure. The manager highlights a new electricity-network maintenance and repair contract through VINCI Energies in southern Stockholm. Although modest at around EUR30 million per year initially, the contract illustrates how continued grid spending can generate long-duration and recurring revenue. The thesis rests on established infrastructure operators benefiting from network renewal and rising electricity demand.
“providing long-term, recurring revenue.”
Key risks
- Higher government-bond yields weigh on rate-sensitive real-asset valuations.
- More expensive financing can pressure capital-intensive businesses and future returns on investment.