Back These Energy Funds – Big Winners From the Gulf Crisis

Why It Matters

Diversified energy funds can capture booming electricity demand and profit from geopolitical shocks, making them attractive alternatives to narrowly focused renewable or fossil‑only vehicles.

Key Takeaways

• Guinness Sustainable Energy Fund returned 18% in 2025 after prior losses
• Fund spans equipment, EVs, batteries, power generation, and efficiency firms
• IEA projects electricity demand growth of 3.7% in 2026, 4% thereafter
• Gulf crisis pushed Brent above $100/barrel, boosting Global Energy Fund 41% Q1
• Grid upgrades could double power infrastructure spending to $800B by 2040

Pulse Analysis

The surge in electricity demand is reshaping capital allocation across the energy sector. With the International Energy Agency projecting a 3.7% rise in 2026 and a sustained 4% annual increase thereafter, investors are looking beyond pure‑play renewable projects toward broader exposure that captures equipment, efficiency, and electric‑vehicle supply chains. Funds like the Guinness Sustainable Energy Fund illustrate how a diversified basket can deliver double‑digit returns even when traditional renewable infrastructure funds lag, thanks to exposure to fast‑growing ancillary markets and the accelerating rollout of battery and grid‑modernisation technologies.

Geopolitical events have re‑energised the fossil‑fuel side of the equation. The recent Gulf conflict pushed Brent crude above $100 per barrel, propelling the Guinness Global Energy Fund to a 41% first‑quarter gain. While oil prices remain volatile, the crisis highlighted the strategic risk of supply concentration and spurred governments and majors to invest in new production and transport capacity. This renewed focus on oil and gas, combined with a 40% valuation discount to global equities, creates a compelling entry point for investors seeking both yield and capital appreciation.

Infrastructure constraints add another layer of upside. Over half of U.S. grid transformers and much of the Western world’s transmission assets are three decades old, prompting estimates that global power‑grid spending will double to $800 billion annually by the 2040s. Such capital intensity benefits diversified energy funds that hold both renewable‑generation assets and the hardware needed for grid upgrades. As the world balances decarbonisation goals with reliable baseload supply, funds that bridge the gap between clean‑tech and traditional energy are poised to outperform broader market indices.