Clean, affordable and reliable energy

Xcel Energy is a US-listed regulated utility serving 3.5 million electric and 2 million gas customers in eight Midwestern and Western states, primarily Colorado and Minnesota. We invested in the company due to its combination of strong environmental credentials, and an attractive 5-7% earnings per share growth.

This growth is being driven by its investment in decarbonising its power generation assets through measures including: replacing coal with wind; grid advancement; smart meters; transmission; and electric vehicle infrastructure.

Colorado and Minnesota are at the forefront of addressing climate change with adaptive policies promoting cleaner energy generation and electric vehicle infrastructure. In March 2019, Minnesota announced a new set of policy proposals that would require the state’s electric utilities to generate power using 100% carbon-free resources by 2050. Colorado has set statutory targets for the state to cut climate pollution by at least 90% by 2050 (relative to 2005 levels).

These polices have enabled Xcel Energy to significantly grow its wind portfolio, with plans to add 4,700 megawatts of wind capacity to their system – enough to power approximately 2.3 million homes per year. Its significant investment in renewable energy with limited, if any, impact to customer bills aligns Xcel Energy with the SDG 7 (Affordable and Clean Energy: ensure access to affordable, reliable, sustainable and modern energy for all).

The company is tracking ahead of its home states’ climate policies, and is aligned with the UNFCCC Paris agreement to limit global temperatures rise this century to ‘well below 2 degrees Celsius above pre-industrial levels’.

By allocating capital to companies like Xcel Energy, we are working towards achieving SDG Target 7.2, to substantially increase the share of renewable energy in the global energy mix by 2030.

All company information referenced has come from the Company Report unless otherwise stated.

Subscribe to our future research papers, case studies and ‘Investing beyond the next decade’ podcast series

Important Information

This publication is provided by First Sentier Investors (Australia) IM Ltd (‘FSI’) in good faith and is designed as a summary to accompany the Product Disclosure Statement for the First Sentier Global Listed Infrastructure Fund (‘the Fund’).

The Product Disclosure Statement is available from FSI, or Implemented Investment Solutions Limited (‘IIS’ or ‘the Issuer’), and on https://disclose-register.companiesoffice.govt.nz/  

The information contained in this publication is not an offer of units in the Fund or a proposal or an invitation to make an offer to sell, or a recommendation to subscribe for or purchase, any units in the Fund.

If you are making an investment directly then you will be required to complete the application form, which can be obtained from IIS.

The information and any opinions in this publication are based on sources that FSI believes are reliable and accurate.

FSI, its directors, officers and employees make no representations or warranties of any kind as to the accuracy or completeness of the information contained in this publication and disclaim liability for any loss, damage, cost or expense that may arise from any reliance on the information or any opinions, conclusions or recommendations contained in it, whether that loss or damage is caused by any fault or negligence on the part of FSI, or otherwise, except for any statutory liability which cannot be excluded.

All opinions reflect FSI’s judgment on the date of this publication and are subject to change without notice.

This disclaimer extends to IIS, and any entity that may distribute this publication.

The information in this publication is not intended to be financial advice for the purposes of the Financial Markets Conduct Act 2013 (FMC Act), as amended by the Financial Services Legislation Amendment Act 2019 (FSLAA).

In particular, in preparing this publication, FSI did not take into account the investment objectives, financial situation and particular needs of any particular person.

Professional investment advice from an appropriately qualified adviser should be taken before making any investment.

Past performance is not necessarily indicative of future performance, unit prices may go down as well as up and an investor in the Fund may not recover the full amount the capital that they invest.

No part of this publication may be reproduced without the permission of FSI or IIS.

IIS is the issuer and manager of the Fund. FSI is the investment manager of the Fund.