Citi Global Wealth UNSToPPABLe TreNDS | | 63 Investments FiGUre 3. CLeAN eNerGY’S LoNG-TerM GAiNS wHAT To Do Now? Since 2021, the publicly traded green 450 infrastructure sector has sold off, underperforming infrastructure investments more generally – FIGURE 3. 400 However, this does not reflect any change Nasdaq Smart Grid in the fundamental case for the clean Infrastructure Index energy transition. Instead, we think it 350 reflects the high valuations reached in the sharp rally in 2020 and the subsequent rise in interest rates that have hurt all 300 growth-oriented assets. The selloff may present a potential long-term entry point. But we cannot rule out further downside, x 250 especially if we are wrong about a peak in e interest rates in 2023. d In Accelerating the transition will involve a 200 wide variety of companies. These include S&P Global Infrastructure Index specialists in renewable energy technology, 150 energy storage, electric vehicles and heat pumps, sustainable materials and carbon capture. In aggregate, we believe such 100 companies are likely to be significant winners over the medium term and bear much less long-term risk than fossil fuel 50 assets. In the meantime, we recognize that liquid natural gas can serve as a transition '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 fuel. New and existing supplies of this fossil fuel will be key to helping meet European energy needs – representing another kind Source: Haver, as of 24 Nov 2022. Past performance is no guarantee of future returns. Real results may vary. Indices are unmanaged. An investor of opportunity for investors. cannot invest directly in an index. They are shown for illustrative purposes only. All forecasts are expressions of opinion, are subject to change In the long term, clean energy can be more without notice and are not intended to be a guarantee of future events. See Glossary for definitions. Chart shows the performance of the Nasdaq Smart Grid Infrastructure Index and S&P Global Infrastructure Index between Jan 2011 and Nov 2022, secure energy. We believe that related with both series rebased to 100 at the start. technologies can help generate portfolio returns as well as sustainable power.