We expect natural gas to continue to be part of the energy mix over the medium term due to its low cost, ability to provide baseload power, and relatively lower carbon emissions compared to other fossil fuels. This is particularly true in the US, which has prioritised natural gas given its access to cheap and abundant domestic supplies.

In contrast, renewables development platforms remain well-positioned in regions such as Europe, China, and India, which have tied the development of renewable energy to energy security and lower long-term energy prices. We are focused on identifying best-in-class players with highly contracted business models and strong management teams with a proven track record of pipeline delivery.

The complex landscape also means that high-quality businesses with multiple pathways to win and strong pricing power are more valuable than ever. For example, leading power and electrical equipment companies that are agnostic to the energy supply mix in each market and benefit from increased power demand regardless of supply side dynamics, are well positioned. As evidence of their pricing power, some of these companies have also historically delivered resilient shareholder returns even amidst varying economic conditions and volatile cost environments.