Guinness Sustainable Energy Fund on Iberdrola
Thesis
The fund owns Iberdrola as a utility exposure with a particular focus on electricity networks. The managers expect electrification and growing power demand to require major transmission and distribution investment, while Europe remains supportive of grid and renewable infrastructure. Iberdrola therefore offers regulated and infrastructure-oriented exposure to the physical networks needed for the transition.
“utility exposure through Iberdrola and SSE, with a particular focus on electricity networks”
Key risks
- Higher interest rates can pressure utility valuations
- Regulatory and policy frameworks can change