Cohen & Steers' Rosenlicht: Energy & natural resource valuations are low relative to rest of market

Energy Market Outlook - The energy market is viewed as an "energy addition" story, driven by population growth, economic growth, and the energy intensity of the global economy, requiring production from as many resources as possible [2][3] - Natural gas is considered uniquely positioned due to its lower carbon intensity compared to other traditional power resources, its abundance, and its potential as a key solution for providing energy and electricity [5] - The market has seen a swing back towards more traditional forms of energy due to the intermittency and variability of alternatives, which don't provide the 24/7/365 power needed for data centers and AI [4][5] Investment Strategy - The fund focuses on companies with strong growth opportunities, even if it means sacrificing some current yield [13][14] - The fund sees value in European integrated energy companies relative to North American counterparts, viewing natural gas as a key bridge fuel [6] - The fund is bullish on nuclear energy as a predictable, low-cost, and cleaner energy source that bridges the gap between traditional resources and alternatives [10][11] Company Specifics - Shell is the top holding in the Cohen and Steers natural resources active ETF, with a focus on putting Shell back on top, being the world's biggest trader of LNG [1] - TC Energy's natural gas pipeline network across the US and Canada is attractive due to strong demand and impaired ability to add new pipeline supply, leading to above-average returns [8][9] - TC Energy has nuclear facilities in Ontario that the market is believed to be underappreciating [11] - Williams Companies is a top five holding due to its franchise natural gas pipeline footprint and opportunities to increase pipeline capacity investments, particularly to facilitate power and electricity into data centers [14]