Liontrust GF Sustainable Future Pan-European Growth Fund on Iberdrola SA
Thesis
Liontrust added Iberdrola for its renewable-generation assets and electricity networks in Spain, the UK, the US and Brazil. The manager views electrification of heating, transport and industry as a long-running source of demand for both clean electricity and grid upgrades. Iberdrola's scale, hydro flexibility, smart grids and diversified power platform underpin the thesis. Its capital allocation is increasingly directed at the network bottleneck required to connect growing renewable demand.
“its capital allocation has shifted towards the bottleneck in the energy transition”
Key risks
- Higher interest rates and oil prices could weigh on equity valuations and growth.
- Currency movements could reduce returns from overseas equities.