Sustainable Infrastructure - the example of NextEra

3 min read 7 Oct 21

Investing in the road to zero carbon

Engaging with renewable energy champions on both sides of the Atlantic

Among the core holdings in the M&G Global Listed Infrastructure Fund is NextEra Energy a company at the vanguard of renewable energy deployments. The critical nature of the underlying assets epitomises the attractions of infrastructure as an asset class, while the structural growth in renewables provides a powerful long-term tailwind for companies addressing climate change.

The value and income from the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

NextEra Energy is a US utility company which ranks as the world’s largest producer of wind and solar energy. With a broad geographic footprint across the US, NextEra Energy is the nation’s leading provider of clean energy including natural gas, a key transition fuel for the reduction of carbon emissions. It is also a market leader in energy storage, with more capacity than any other company in the US, to improve the efficiency of energy use.

Sustainability is at the core of the company’s strategy to benefit a broad range of stakeholders: the environment, by way of its focus on clean sources of energy; customers, by way of a reliable service and lower costs; and shareholders, by way of consistently rising cashflows and dividends. We invested in NextEra Energy at the fund’s launch in October 2017 and since then the company has produced higher dividends and a higher share price.

Take a look at our glossary for explanations of the investment terms used throughout this article.

We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser.

This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decisions. The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. The views expressed in this document should not be taken as a recommendation, advice or forecast. Past performance is not a guide to future performance. Please note, investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company, as these are only the underlying assets owned by the fund.

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