Guinness Sustainable Energy Fund on SSE
Thesis
The fund owns SSE as a utility exposure focused particularly on electricity networks. The managers expect rising power demand and electrification to require sustained investment in grid infrastructure, creating a long runway for network assets. SSE also participates in renewable generation, giving it exposure to both the network and low-carbon supply sides of 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