Guinness Sustainable Energy Fund on TE Connectivity
Thesis
The fund owns TE Connectivity for exposure to both electrification infrastructure and increasing electronics content in electric vehicles. The company is part of the electrical-products group that benefits from grid build-out and is also identified as an EV component supplier that should gain as vehicle electrical content rises. The managers expect EV adoption and broader electrification to raise demand for these components over time.
“should benefit from the ever-increasing amount of electronics present in electric vehicles”
Key risks
- EV adoption can be slowed by affordability and charging constraints
- Higher interest rates can weigh on growth-stock sentiment