| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.6% | -2.9% | 8.8% |
| 2025 |
|---|
| 8.8% |
Miller/Howard's Infrastructure portfolio recorded its fifth straight year of positive performance but decelerated through year-end as infrastructure failed to keep pace with the broad market. The US nuclear industry is undergoing its most significant shift in decades, driven by rising electricity demand from data centers, policy support, and emerging technologies. This creates a foundation for long-term nuclear capacity expansion with opportunities ranging from existing facility contracting to small modular reactor development. The manager favors companies with established earnings profiles and views existing nuclear assets as ideal investments with attractive risk/reward profiles. The portfolio offers high dividend yield over 2.5x the S&P 500 with strong growth prospects and ample coverage. Eight holdings announced dividend increases averaging 9.5% this quarter. Portfolio positioning was adjusted with exits from Public Service Enterprise Group due to regulatory headwinds and additions to Xcel Energy and Sempra Energy after attractive buying opportunities. The manager believes lower beta, high current income, and income growth will prove advantageous in uncertain market conditions.
Infrastructure companies with essential services and high barriers to entry offer attractive dividend yields, growth prospects, and portfolio diversification in an uncertain market environment.
The manager expects nuclear development opportunities to generate a broad set of investment opportunities with widely different risk profiles. They favor companies with well-established earnings profiles and view existing nuclear assets as ideal ways to invest with attractive risk/reward profiles. As emerging technologies demonstrate viability, they expect to add them to their investible universe.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 24 2026 | 2025 Q4 | AMT, CEG, LNG, MPC, NEE, NGG, PEG, SRE, T, TMUS, TRGP, UPS, VZ, XEL | Data centers, dividends, energy, infrastructure, nuclear, Utilities | - | The US nuclear industry is undergoing its most significant shift in decades with rising electricity demand, policy support, and emerging technologies creating foundation for long-term capacity expansion. The manager views companies with existing nuclear assets and restart plans as ideal investments with attractive risk/reward profiles. Rising electricity demand driven by data centers is a key growth driver, with hyperscalers signing multiple power purchase agreements for nuclear offtake. Data centers have power demands ranging from 50 MW to 2 GW and are willing to sign agreements at premium prices for nuclear generation. The portfolio offers high dividend yield over 2.5x the S&P 500 Index with strong prospects for dividend growth and ample coverage. Eight holdings announced dividend increases this quarter with an average increase of 9.5%. Policy support through the Infrastructure Investment and Jobs Act and Inflation Reduction Act has provided financial support and tax credits for nuclear development, putting it on level ground with wind and solar while creating a floor for existing nuclear fleet. |
| Oct 19 2025 | 2025 Q3 | AMT, CCI, CMCSA, ENB CN, ETR, KMI, OKE, PPL, SRE, TRP CN, UPS | AI, dividends, energy, infrastructure, Utilities |
CCI ENB CN ETR SRE PPL |
Infrastructure assets gained from AI-related data center expansion and natural gas project growth. Utilities and midstream firms benefit from AI-driven energy consumption and capital projects, while cell towers underperformed amid slowing growth. The portfolio remains positioned for stable income and dividend growth from regulated assets. |
| Jul 22 2025 | 2025 Q2 | AES, CEG, CMS, CSX, NG/ LN, OKE, PPL, TMUS, TPGP, WCN, WMB, XEL | cash flow, Electrification, inflation protection, infrastructure, regulated assets | - | The commentary highlights infrastructure equities as long-duration assets benefiting from secular investment cycles in energy transition, electrification, and grid modernization. Management notes that regulated assets and contracted cash flows offer inflation protection and downside resilience despite short-term rate volatility. Infrastructure is positioned as a hybrid growth-and-income theme with improving visibility into long-term returns. |
| Mar 31 2025 | 2025 Q1 | AMAR, CEG, CSX, EQIX, EXC, SRE, TMUS, TRGP, UPS | - | - | |
| Dec 31 2024 | 2024 Q4 | EQIX, HCA | - | - | |
| Sep 30 2024 | 2024 Q3 | AWK, LNG | - | - | |
| Jun 30 2024 | 2024 Q2 | MPC, WM | - | - | |
| Mar 31 2024 | 2024 Q1 | BCE, WM | - | - | |
| Dec 31 2024 | 2023 Q4 | EVRG | - | - | |
| Sep 30 2024 | 2023 Q3 | CEG, CMCSA, FWRD | - | - | |
| Jun 30 2024 | 2023 Q2 | HCA, NGG, SBAC, UGI | - | - | |
| Mar 30 2024 | 2023 Q1 | AMT, CMCSA | - | - | |
| Feb 22 2023 | 2022 Q4 | NRG | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Data CentersSupply constraints curtailing infrastructure buildout rate, but compute capacity is being used immediately upon coming online. This differs from dot-com bubble when dark fiber was installed ahead of need. Labor, power and land shortages creating bottlenecks. |
Supply Constraints Utilization Bottlenecks Infrastructure |
DividendsJapanese companies paid record dividends of ¥18 trillion for fiscal year ending March 2025, a 13.8% year-over-year increase. Many major firms have adopted progressive dividend policies guaranteeing dividends will never be cut, only maintained or increased. |
Progressive Dividend Record Payouts Shareholder Returns Yield Growth | |
Infrastructure SpendingPlaying on the continued theme of infrastructure spending, defense and energy sustainability, positions in Industrial and Energy sectors including Oshkosh, Coterra, OSI Systems, and Herc Holdings added positively to performance. |
Defense Energy Industrial Government Sustainability | |
NuclearPosition in Uranium Energy as the largest licensed uranium miner in the U.S., positioned to benefit from renewed focus on nuclear power as long-term energy solution and U.S. efforts to strengthen domestic nuclear fuel supply chains for national security. |
Uranium Mining Nuclear Power Energy Security Domestic Supply National Security | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
InfrastructureDigital 9 Infrastructure holds telecom infrastructure assets including Arqiva stake. Despite poor 2025 performance, potential capital returns and asset sales could unlock value. Infrastructure assets provide defensive characteristics. |
Telecom Infrastructure Digital Infrastructure | |
UtilitiesThe utilities sector led returns in Q4 2025, with SSE delivering strong performance supported by its upgraded investment plan and improved visibility across regulated earnings and renewable infrastructure growth. The portfolio maintains an 8.9% allocation to utilities, representing a +5.3% overweight versus the benchmark. |
Regulated Utilities Renewable Infrastructure Investment Plan Earnings Visibility Infrastructure | |
| 2025 Q2 |
InfrastructureDigital 9 Infrastructure holds telecom infrastructure assets including Arqiva stake. Despite poor 2025 performance, potential capital returns and asset sales could unlock value. Infrastructure assets provide defensive characteristics. |
Telecom Infrastructure Digital Infrastructure |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 19, 2025 | Fund Letters | Adam Fackler | PPL | PPL Corporation | Utilities | Electric Utilities | Bull | NYSE | AI, data centers, Earnings stability, Joint venture, Power generation, utilities | Login |
| Oct 19, 2025 | Fund Letters | Adam Fackler | CCI | Crown Castle Inc. | Real Estate | Telecom Tower REITs | Bull | NYSE | 5G, AI, deleveraging, dividends, infrastructure, Towers, valuation | Login |
| Oct 19, 2025 | Fund Letters | Adam Fackler | ENB CN | Enbridge Inc. | Energy | Oil & Gas Storage & Transportation | Bull | TSX | cash flow, dividends, growth, infrastructure, LNG, natural gas, Pipelines | Login |
| Oct 19, 2025 | Fund Letters | Adam Fackler | ETR | Entergy Corporation | Utilities | Electric Utilities | Bull | NYSE | dividends, Grid, Modernization, Regulation, Renewable integration, utilities | Login |
| Oct 19, 2025 | Fund Letters | Adam Fackler | SRE | Sempra Energy | Utilities | Multi-Utilities | Bull | NYSE | capital discipline, dividends, growth, infrastructure, LNG, utilities | Login |
| TICKER | COMMENTARY |
|---|---|
| AMT | 3Q beat and raise was overshadowed by DISH (not held) claiming it should be excused from future lease payments and pressure to organic billing growth. REITs also faced pressure as long-term interest rates remained stubbornly high. |
| CEG | 3Q results were in line, and the company noted commercial activity was intensifying. A FERC ruling on co-location was viewed as a positive for Independent Power Producer (IPP) development. CEG also benefited from the PJM Interconnection capacity auction in which pricing came in at the top of the collar range. |
| LNG | Concerns about liquefied natural gas (LNG) supply/demand fundamentals weighed on the stock, although the company is highly contracted, which limits exposure to commodity prices and other risks. |
| MPC | Rare refinery earnings miss on operational items that we believe to be one-time in nature. Favorable 2026 capex guidance. |
| NEE | On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center, a 600-megawatt nuclear facility that had been shut down in 2020. |
| NGG | National Grid contributed positively, reflecting investor confidence in regulated asset bases, long-duration cash flows and accelerating investment tied to grid modernization and renewable energy infrastructure. |
| PEG | We trimmed our position in Public Service Enterprise Group (PEG) on a deteriorating regulatory environment as focus has shifted to bill pressure in New Jersey. |
| SRE | We added to positions in NextEra Energy (NEE) and Sempra Energy (SRE) after periods of underperformance provided attractive buying opportunities for two companies that we expect will benefit from their premium growth profiles. |
| T | Telecoms lagged on concerns that a new CEO at VZ (not held) will increase the competitive intensity within the industry. |
| TMUS | T-MOBILE US INC detracted -0.32% from relative performance |
| TRGP | Targa Resources is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is part of a group that controls 90% of the fractionation capacity in the largest hub for NGLs in the world, known as Mont Belvieu. Thanks to the region's unique topography and proximity to the Gulf Coast, Targa benefits from meaningful cost advantages and significant barriers to entry. We like that Targa generates approximately 90% of its earnings through multi-year fee-based arrangements with its customer base, which provides protection against oversupply or re-contracting. Uncertainty around Permian oil production growth has recently weighed on the share price. However, in our view, Targa remains well-positioned to grow, even if the Permian slows dramatically. We were happy to purchase shares at a discount to peers based on normalized earnings power and our estimate of intrinsic value. |
| UPS | 3Q earnings beat, and 4Q guidance topped expectations. UPS also benefitted from the market's shift to cyclicals. |
| VZ | In line EPS with a very slight miss on revenue. Postpaid phone losses were much less than expected. New CEO said the right things on the call, but investors are awaiting policies and results |
| XEL | XEL updated its long-term EPS guidance to 6% to 8%+ (with management expecting to be able to deliver 9%). However, the Texas attorney general (AG) announced that he is suing the company for its involvement in the Smokehouse Creek fire. We would note that the AG is currently running for a US Senate seat. |
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