To help investors encourage that growth, NEI Investments has launched the NEI Clean Infrastructure Fund. A global strategy that focuses on influential renewable energy companies, the fund is set to benefit from several growing tailwinds.
First, there is a growing consensus among major research and intelligence firms including the International Energy Agency, Bloomberg and the National Energy Foundation that the world should double or triple its green infrastructure investments in order to meet their collective commitments under the Paris Agreement. need to. Bai says that the literal trillion-dollar opportunity should be a very attractive trend for investors to participate in.
The fund could also be attractive given the current uncertainty in the markets. In addition to record-high inflation and rising interest rates, investors are trying to gauge the dangers of the largest land war in Europe since World War II. With political and economic risks so high, investors are looking for ways to protect their portfolios without sacrificing returns.
“A lot of the green infrastructure plays we are investing through the fund have strong balance sheets and high dividend payouts. We are anticipating a dividend growth rate of 5%,” he continued. The defensive feature is when we’re seeing a lot of market volatility.”
To ensure the fund is invested in companies that are financially sound, Bai says it will look at a raft of metrics such as balance sheet strength, high credit quality and strong internal rates of return. It will also select for firms with strong contractual relationships and strong cash flow generation and growth opportunities.
