Insights + News

1.10.2022   We believe Quanta Services (PWR) works as a go-to “picks & shovels” as a potential pure play for domestic energy transmission infrastructure. A leading specialty construction services franchise, PWR fits our Climate Sustainability megatrend. 

According to our research, a number of megatrends are driving our future. Within these overarching themes are companies that may have the potential to exploit changes in technology, consumer preferences, demographics, and environmental sustainability. These changes can lead to significant increases in their total markets, earnings trajectories and market capitalizations. We believe Quanta Services is one of these companies.

 

Quanta Services (PWR)

  • PWR, a potential Core Holding for Energy Transition portfolios as a go-to “picks & shovels” potential pure play for domestic energy transmission infrastructure. A leading specialty construction services franchise in this field, we believe PWR aligns with the electrification of everything within the Climate Sustainability megatrend.
  • Secular Growth Outlook underpinned by numerous durable trends:
    • Grid modernization 
    • Renewables integration
    • EV penetration plus other broad-ranging electrification initiatives 
    • 5G network buildout
    • Rising customer outsourcing
    • Blattner acquisition expands PWR into solar, wind and EV infrastructure
  • Infrastructure Stimulus – The recently passed infrastructure plan should accelerate the strengthening U.S. electric grid. We also believe some form of the Build Better Back legislation (BBB) will eventually become an incremental driver of electrification.
  • Acceleration & Expansion of Clean Energy & Infrastructure Opportunity Set – Following several weather/fire events over the past several years, significant investment is being made to harden power grids to be better prepared for severe weather events in the future. We believe further large- scale investment in the power and utility grids will be required as EV adoption, energy electrification, carbon emission reduction and increasing renewables generation initiatives continue to unfold.
  • Communications and 5G – PWR has identified the rollout of 5G wireless networks in North America as needing ~$275B of infrastructure investment that the company is well positioned for, given its expertise in both telecom and electric power infrastructure (both of which are expected to be necessary as new equipment will need to be installed).

PWR is 1.52% of FFND as of 1/7/2022.

The Future Fund LLC is an SEC-registered investment advisor. Opinions are as of 1/10/2022 and subject to change without notice.

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. There is no guarantee that the Fund will achieve its investment objectives. In general, prices of equity securities are more volatile than those of fixed income securities. The prices of equity securities fluctuate in response to issuer-specific activities as well as factors unrelated to the fundamental condition of the issuer, including general market, economic and political conditions along with other factors. While the shares of ETFs trade on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. The Fund was recently organized with no operating history. In addition, the Advisor has not previously managed an ETF, which may increase the risks of investing in the Fund.

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Shareholders may pay more than NAV when buying fund shares and receive less than NAV when selling fund shares, because shares are bought and sold at current market prices. The performance quoted represents past performance and does not guarantee future results.

The Future Fund Active ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Investors should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund and should be read carefully before investing. The prospectus may also be obtained by calling 877.466.7090.

The Future Fund Active ETF is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. The Future Fund LLC is the investment advisor to the Fund, and is not affiliated with Northern Lights Distributors, LLC.

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HOW MEGATRENDS ARE SHAPING OUR FUTURE

Megatrends have been changing the way people live for hundreds or even thousands of years.

Read our brief on how we believe these global forces are impacting businesses, economies, cultures and individuals today, and setting a path for the future.
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