Guinness Sustainable Energy Fund on Vestas Wind Systems
Thesis
The fund owns Vestas to obtain broad exposure to the strong growth it expects in onshore and offshore wind markets. In August Vestas was the fund's top performer after order intake rose more than 60% year on year and strong margin execution allowed management to raise margin guidance. The managers also expect wind to remain an important source of new global power capacity as electricity demand rises and renewable economics remain competitive.
“Wind turbine manufacturer Vestas provides broad exposure to the strong growth that we expect in the onshore and offshore wind markets”
Key risks
- Wind project economics are sensitive to financing conditions
- Policy support and manufacturing incentives can change