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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Miller Howard Investments Utilities Plus 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Miller Howard Investments Utilities Plus)

Primary Source Intelligence • Q3 2026 Letter Analysis

Miller Howard Investments Utilities Plus Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Miller Howard Investments Utilities Plus. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+14.81%

Positioning StanceCONSTRUCTIVE

GeographyUS

Digest Analysis

Quick Take

"Constructive on regulated utilities and power producers with visible EPS growth, adding to Ameren, MDU Resources, and NRG while exiting Fortis on valuation and trimming Sempra over wildfire liabilities."

Executive Summary

The Utilities Plus portfolio outperformed its benchmark during the third quarter of 2026 despite persistent headwinds confronting the broader utilities complex. Pressure mounted as the 10-year Treasury yield surpassed 5.00% to close near 5.29%, while intensifying concerns regarding rising retail customer electric bills spurred regulatory and legislative pushback. Within the utility landscape, water utilities and local natural gas distribution companies outperformed due to limited data center exposure, while regulated electric utilities and independent power producers lagged. Macroeconomic headwinds were heavily dictated by rising yields and public debate over data center power agreements. Regulators in Texas instituted pauses on data center interconnections, while PJM Interconnection jurisdictions debated legislative solutions to avoid shifting infrastructure costs onto residential ratepayers. Miller/Howard emphasizes the necessity of structured tariffs where data centers absorb their own capital costs through dedicated long-term supply contracts and updated wholesale market frameworks. Portfolio turnover reflected this shifting regulatory and growth environment. Conviction was increased in Ameren, MDU Resources, and NRG Energy, capitalizing on attractive earnings trajectories and tightening generation supply. Conversely, the manager exited Fortis due to a valuation premium unsupported by balance sheet metrics, and trimmed Sempra in response to legislative inaction on California wildfire liability frameworks.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

58%

CautiousHigh

Moderate (58%)

The portfolio maintains a clear thematic focus across 30 holdings, executing decisive portfolio shifts including the total exit of Fortis and targeted adds to high-growth names like Ameren and NRG. However, conviction is tempered by broad diversification and absence of individual position sizing figures.

Growth Outlook

52%

BearishBullish

Neutral (52%)

The manager remains optimistic regarding the industry's ability to structure equitable large-load customer contracts and benefit from load growth over the long run. Nevertheless, this optimism is counterbalanced by near-term caution surrounding 10-year Treasury yields surpassing 5% and regulatory moratoriums.

Risk Appetite

55%

DefensiveAggressive

Balanced (55%)

Capital positioning reflects a measured stance, trimming names exposed to regulatory liability like Sempra while rotating into power producers poised to capture tight wholesale markets. The strategy remains invested in dividend payers with defensive cash flow characteristics.

Capital Deployment

52%

De-riskingDeploying

Net Neutral (52%)

Portfolio actions indicate net neutral rebalancing rather than aggressive cash drawdown or de-risking, replacing full exits like Fortis with scaled positions in Ameren, MDU Resources, and NRG Energy.

Forward Guidance

60%

CautiousExpansionary

Neutral (60%)

Actions indicate ongoing selective redeployment into operators benefiting from power market tightening and pipeline accretions. The manager continues to monitor rate case outcomes and regulatory clarity before ramping exposure.

Language Signal

54%

BearishBullish

Balanced (54%)

Commentary balances positive terms such as earnings beats, dividend hikes, and multi-year guidance reaffirmations with frequent references to moratoriums, pushback, stranded asset risk, and wildfire liability.

Perceived Risk

68%

Low RiskElevated

Elevated Risk (68%)

The manager highlights specific macro and regulatory risks, explicitly identifying elevated Treasury yields over 5.29%, consumer affordability resistance, data center interconnection pauses, and unresolved California wildfire liabilities.

Opportunity Density

58%

ScarceAbundant

Selective (58%)

Opportunities exist primarily in regulated utilities with accretive capital expenditure plans and merchant generators with contracting power. However, regulatory resistance across PJM and Texas narrows the immediately actionable set.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

Positioning is guided by multi-year capital plans extending through 2029 and 2030, such as long-term power contracts and pipeline integrations. Near-term noise is evaluated against structural multi-year power generation demand.