United Kingdom, Professional
Change
This is a marketing communication. Please refer to the Fund Prospectus and KIID and / or offering documents before making any final investment decisions. Please refer to the risks section at the bottom of this page.
competitive advantage
National Grid1 is a major European utilities company and plays a crucial role in the UK's electricity system. Its existing transmission and distribution networks possess the status of a natural monopoly, and revenues are controlled and protected by regulation. In the UK and the US states in which it operates, the company earns revenue based on market cost of capital and can generate additional revenue in the UK for meeting performance targets, along with annual inflation adjustments. Committed to grid modernisation, National Grid plans to invest around £60 billion by 2029 to enhance network capacity and support the transition to renewable energy. Recently, the company has expanded its services beyond traditional electricity to include energy efficiency programmes and renewable energy solutions. Aiming for net-zero emissions by 2050, it has already reduced its Scope 1 and 2 emissions by 67% from its 1990 baseline. National Grid's strategic investments and ambitious carbon reduction goals underscore its commitment to a sustainable energy future.
Key points
- Revenue is largely derived from regulated activities, providing a more stable and predictable income stream.
- A strong growth outlook driven by investment needed to enhance network capacity and support the energy transition.
- Committed to sustainability, aiming for net-zero emissions by 2050.
1 Source: National Grid: Unless stated otherwise, all figures in this document are accurate as of January 2025. | PAST INDEX OR THIRD PARTY PERFORMANCE DOES NOT PREDICT FUTURE RETURNS. Information presented contains forward-looking statements. Actual results and occurrences may vary, perhaps significantly, from any forward-looking statements made.
CONSIDER THE RISKS
Investors should consider the risks that may impact their capital, before investing. The value of your investment may fluctuate from the time of the original investment. Please refer to the risks section enclosed. A decision to invest should take account of all the characteristics and objectives described in the prospectus and KIID/KID and/or offering documents. The portfolio does not have a sustainable investment objective. While the evaluation of Sustainability Risks through the analysis of ESG factors is part of the investment process, it may not necessarily result in the exclusion of a security. Please refer to the sustainability related disclosures for information on the commitments of the portfolio: https://www.wellington.com/en/legal/sfdr.
Risks
Capital: Investment markets are subject to economic, regulatory, market sentiment and political risks. All investors should consider the risks that may impact their capital, before investing. The value of your investment may become worth more or less than at the time of the original investment. The Fund may experience a high volatility from time to time. | Concentration: Concentration of investments within securities, sectors or industries, or geographical regions may impact performance. | Currency: The value of the Fund may be affected by changes in currency exchange rates. Unhedged currency risk may subject the Fund to significant volatility. | Emerging Markets: Emerging markets may be subject to custodial and political risks, and volatility. Investment in foreign currency entails exchange risks. | Equities: Investments may be volatile and may fluctuate according to market conditions, the performance of individual companies and that of the broader equity market. | Hedging: Any hedging strategy using derivatives may not achieve a perfect hedge. | Manager: Investment performance depends on the investment management team and their investment strategies. If the strategies do not perform as expected, if opportunities to implement them do not arise, or if the team does not implement its investment strategies successfully; then a fund may underperform or experience losses. | Small and Mid-Cap Company: Small and mid-cap companies' valuations may be more volatile than those of large cap companies. They may also be less liquid. | Sustainability: An environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment.
Please refer to the fund prospectus and KIID for a full list of risk factors and pre-investment disclosures