Global energy demand is poised for substantial growth in the coming decades, which is creating attractive investment opportunities across the alternative energy landscape and the traditional energy value chain.
KEY TAKEAWAYS
- Population and economic growth are the main catalysts for increasing global energy demand. By 2040, alternative energy consumption is projected to double (from 17% in 2022 to 35%), while traditional energy will also see an increase in consumption, with volumes (ex-coal) increasing 12% in aggregate over that same time period.
- Investors face challenges, however, as existing strategies often track only traditional or alternative energy benchmarks. Traditional energy indexes, for its part, are highly concentrated and miss out on the best opportunities in alternative energy, while alternative energy indexes are widely exposed to both winners and losers and lack exposure to traditional energy.
- We believe an active investment approach that recognizes the reality of the world’s energy demands and pairs traditional with alternative sources will create superior investment outcomes.
Visit the Cohen & Steers Energy Knowledge Center to learn more.
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Effective March 28, 2024, the name, principal investment strategies and principal investment risks of the Cohen & Steers MLP & Energy Opportunity Fund changed. The investment objective of the Fund has not changed and remains to provide attractive total return, comprised of current income and price appreciation. The Fund seeks to achieve its investment objective through investments in securities of energy companies, including traditional-, alternative-, renewable- and clean-energy companies, natural resource companies, utilities, and companies in associated businesses.
Data quoted represents past performance, which is no guarantee of future results. There is no guarantee that any market forecast set forth in this material will be realized. There is no guarantee that any historical trend illustrated in this material will be repeated in the future, and there is no way to predict precisely when such a trend will begin. An investor cannot invest directly in an index and index performance does not reflect the deduction of fees, expenses or taxes.
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This material is for informational purposes and reflects prevailing conditions and our judgment as of April 2024, which are subject to change. This material should not be relied upon as investment advice, does not constitute a recommendation to buy or sell a security or other investment and is not intended to predict or depict performance of any investment. This material is not being provided in a fiduciary capacity and is not intended to recommend any investment policy or investment strategy or take into account the specific objectives or circumstances of any investor. We consider the information in this material to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of appropriateness for investment. Please consult with your investment, tax or legal professional regarding your individual circumstances prior to investing.
Energy Important Risk Considerations: Investing involves risk, including entire loss of capital invested. There can be no assurance that the investment strategy will meet its investment objectives. Diversification is not guaranteed to ensure a profit or protect against loss. An investment in the energy sector involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. Investors will subject to more risks related to the energy sector than if the Fund were more broadly diversified over numerous sectors of the economy. A downturn in the energy sector of the economy could have a larger impact on the Fund than on an investment company that does not concentrate in the sector. At times, the performance of securities of companies in the sector has lagged the performance of other sectors or the broader market as a whole. Energy sector investments can be volatile due to fluctuations in commodity prices, availability of resources, slowdowns in construction, reduced demand for energy products, regulatory changes, extreme weather or natural disasters, rising interest rates and geopolitical events. Special risks of investing in foreign securities include (i) currency fluctuations, (ii) lower liquidity, (iii) political and economic uncertainties, and (iv) differences in accounting standards. Certain foreign securities may represent small- and medium-sized companies, which may be more susceptible to price volatility and less liquid than larger companies. The Fund is classified as a "non-diversified" fund under the federal securities laws because it can invest in fewer individual companies than a diversified fund. However, the Fund must meet certain diversification requirements under the U.S. tax laws.
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