Overview
The GMO Power Infrastructure Strategy seeks total return by investing primarily in equities of companies operating in power infrastructure-related industries. GMO believes long-term drivers such as population growth, accelerating electrification, increasing wealth in emerging markets, reindustrialization, and surging energy demands from data centers and AI growth are converging to create a step-change in demand. At the same time, supply is constrained by aging grids and electrical equipment, as well as by power generation limits. This sets the stage for sustained secular growth across companies spanning power generation, transmission, distribution, related infrastructure, and materials used.
The Focused Equity team combines fundamental and quantitative research to identify power infrastructure companies whose profitability is directly tied to the electrification and power generation value chain, businesses built to benefit as the world's appetite for power grows larger and more complex. The Strategy invests globally, in a benchmark-agnostic manner, allowing GMO to pursue attractive investment opportunities wherever they may be.
Facts
Performance
Documents
Risks
Risks associated with investing in the Strategy may include: (1) Focused Investment Risk: the Fund invests its assets in the securities of a limited number of issuers, and a decline in the market price of a particular security held by the Fund may affect the Fund's performance more than if the Fund invested in the securities of a larger number of issuers; (2) Commodities Risk: commodity prices can be extremely volatile, and exposure to commodities can cause the value of the Fund's shares to decline or fluctuate more than if the Fund had a broader range of investments; and (3). Market Risk - Equities: the market price of equities may decline due to factors affecting the issuer, its industries, or the economy and equity markets generally. Declines in stock market prices generally are likely to reduce the net asset value of the Fund's shares. This is not a complete list of risks associated with investing in the Strategy. Please contact GMO for more information.