Guinness Global Real Assets Fund on Enbridge Inc.
Thesis
Guinness holds Enbridge as its midstream energy-infrastructure exposure. Enbridge's USD2.55 billion purchase of Tallgrass Energy's crude business adds pipeline and storage assets linking the Rockies to Cushing and the US Gulf Coast. The acquisition extends an existing network rather than relying on speculative new infrastructure. The investment fits Guinness's preference for ownership of difficult-to-replicate physical assets that can support persistent cash generation.
“The deal extends Enbridge's crude network into the Rockies”
Key risks
- The fund describes energy and real assets as exposed to volatile energy prices and market conditions.
- Higher interest rates can pressure capital-intensive infrastructure valuations and financing costs.