Spotlight on Michel Sznajer, Portfolio Manager, Ecofin at Redwheel
Global Thought Leader Spotlight
Michel Sznajer, Portfolio Manager, Ecofin at Redwheel
In my role as Portfolio Manager for the Global Renewables Infrastructure Strategy at Ecofin at Redwheel, I manage portfolios that focus on electrification and decarbonisation in the power sector by investing in developers, operators and owners of clean power generation assets and related infrastructure.
My team and I look for the best risk‑adjusted return opportunities in companies at the forefront of the energy transition that are compounding value over time. These companies typically grow faster than peers, generate attractive returns and act as good stewards of capital.
Listed utilities are an undervalued growth asset
Many investors continue to perceive utilities, and the electricity sector in particular, as low growth, defensive and bond proxies. This fails to recognise that the sector has reached an inflection point in terms of secular, rather than cyclical, growth.
As such, historically light investor positioning in the sector should be reconsidered and potentially adjusted upward to reflect actual sector dynamics.
At the same time, listed infrastructure valuations remain low versus the broader equity market, creating an attractive entry point for long‑term investors.
AI and the next leg of power demand
AI‑related capex and power needs have so far been led by the US and China, but we expect both investment and demand to pick up meaningfully in other regions. Europe is a few years behind the US and Latin America is not far behind, which in our view extends and broadens the runway of opportunities for investors.
This AI‑driven theme adds to existing electrification trends such as electric vehicles, data centres more broadly, heat pumps and the steady build‑out of renewable energy. Together, these forces underpin what we see as a multi‑decade transition that has only just begun.
Repositioning for an electric future
Energy has lagged electricity and utilities over the past two decades when electricity was little discussed. As mainstream demand drivers gain momentum, we believe investors should prioritise the electricity sector when thinking about their overall energy exposure.
In our view, a discrete exposure to the electrification super‑cycle offers several potential advantages.
From an asset‑allocation perspective, the sector brings meaningful diversification benefits. It combines attractive non‑cyclical, high single‑digit growth with elevated yields; trades on lower valuations than the broader market; and historically has shown lower beta to equity indices.
It is typically less volatile and less dependent on commodity prices than broader energy transition approaches.
The investable universe is already sizeable, over US$2 trillion* in market capitalisation across sub‑sectors such as distributed renewables, electricity transmission operators, electric utilities, integrated utilities and renewable power producers, and it continues to expand.
Finally, it offers investors the potential to invest globally and across diversified technology exposure, which helps investors navigate evolving regulatory and geopolitical landscapes.
Keeping a keen eye on the risks
As with any secular growth story, there are risks that require close monitoring.
Overbuilding of data centres and power generation could lead to excess capacity while sudden gains in chip energy efficiency could weigh on electricity demand growth.
In addition, higher power prices and increased electricity consumption will likely translate into higher utility bills, which may raise affordability concerns and, in turn, regulatory pressure to cap returns for power companies.
A thorough, bottom‑up assessment of regulatory frameworks and political risk is essential to avoid adverse outcomes.
Michel will be presenting at Global Investment Institute’s upcoming Family Office Investment Forum, taking place on Tuesday, 17 March 2026 in Sydney CBD, New South Wales. To register your interest in attending, click here or for more information email zlatan@globalii.com.au.
*Source: Redwheel, Ecofin Investment Team, as of 31 December 2025
Michel Sznajer, Portfolio Manager, Ecofin at Redwheel
Michel is a Portfolio Manager within the Ecofin investment team at Redwheel, where he leads the Ecofin Global Renewables strategies.
Prior to Redwheel, Michel was an analyst and portfolio manager at Wellington Management. Earlier in his career, he gained experience at Goldman Sachs and Indosuez W.I. CARR, where he covered telecommunication sectors in Asia.
Michel holds an MSc in Business and Engineering from Brussels University and is a CFA® Charterholder.
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