Guinness Sustainable Energy Fund on Eaton
Thesis
The fund owns Eaton within its electrical-equipment exposure to the electrification of energy demand and the build-out of the grid. Eaton participates in electrical products across low, medium and high-voltage applications and a wide range of end markets. The broader investment case is that rising electricity demand and large grid-modernization requirements should sustain demand for this equipment while the fund applies a quality and valuation discipline to that growth.
“facilitate the electrification of energy demand and the build-out of the electrical grid”
Key risks
- Higher interest rates can weigh on growth-stock sentiment
- Grid bottlenecks can delay new generation and network projects