Power Equipment & New Energy Sector: Deep Dive into 3Q25 Fund Holdings

Institutional Capital Flows Signal Broad-Based Reaccumulation Across EV, PV, Wind, and Grid Segments

Date: November 12, 2025
Source: Dongwu Securities Research Institute
Analysts: Zeng Duohong (S0600516080001), Xu Junhe (S0600525090005)
Rating: Overweight (Maintained)

Executive Summary

Based on a quantitative analysis of the top ten holdings of 12,986 mutual funds for the third quarter of 2025 (3Q25), this report identifies a significant resurgence in institutional confidence toward the Electrical Equipment and New Energy (EE&NE) sector. The sector’s weight in total fund heavy holdings rose by 2.74 percentage points (pct) quarter-on-quarter (QoQ) to 14.94%, marking a decisive reversal from the downward trend observed in 1H25. This broad-based increase reflects a strategic reallocation of capital towards high-certainty growth sub-sectors, driven by improving supply-demand dynamics, technological iterations, and policy support.

Key Structural Shifts in 3Q25:
* Broad-Based Increase: All major sub-sectors—Electric Vehicles (EV), Photovoltaics (PV), Energy Storage, Industrial Control, Power Grid, and Wind Power—experienced QoQ increases in fund holdings.
* EV Sector Rotation: Capital flowed upstream into lithium resources and mid-stream materials (cathodes, electrolytes, separators), while reducing exposure to整车 (OEMs) and charging piles. Emerging technologies like sodium-ion batteries and composite current collectors gained traction.
* PV Recovery: Despite overall sector growth, internal divergence is evident. Funds increased positions in silicon material, wafers, cells, and auxiliary materials (glass, silver paste, equipment), while reducing exposure to modules and inverters. This suggests a bet on supply-side clearing and margin recovery in upstream/midstream segments.
* Storage Resilience: While the aggregate storage weighting adjusted, specific niches such as thermal management/fire safety, system integration/EPC, and new energy storage technologies saw substantial inflows, indicating a focus on safety and system-level value capture.
* Grid & Industrial Control Strength: Industrial automation and power electronics continued to attract capital, led by leaders in PLC/DCS and servo systems. The power grid segment, particularly UHV and medium-voltage equipment, saw renewed interest, aligning with grid modernization themes.

This report provides a granular breakdown of these trends, analyzing fund flows at the sector, sub-sector, and individual stock levels, alongside an assessment of overseas capital movements. The data suggests that institutional investors are positioning for a cyclical upturn in profitability and a structural shift towards technological leadership within the EE&NE landscape.

Key Takeaways

1. Overall Sector Configuration: A Decisive Rebound

The EE&NE sector has reclaimed its status as a core configuration for institutional portfolios.
* Holdings Ratio Surge: The proportion of EE&NE heavy holdings in total fund heavy holdings reached 14.94% in 3Q25, a significant QoQ increase of 2.74 pct.
* Market Cap Weighting: The ratio of fund holdings to the total market capitalization of EE&NE stocks rose by 1.04 pct to 4.48%.
* Relative Valuation: The sector is currently overweight by 2.10 pct relative to its market cap weight in the broader A-share market. Specifically:
* EV: Overweight by 2.84 pct.
* Energy Storage: Overweight by 3.70 pct.
* Industrial Control: Overweight by 0.37 pct.
* PV: Slightly overweight by 0.17 pct.
* Wind & Grid: Slightly underweight (Wind -0.08 pct, Grid -0.70 pct), suggesting potential upside room for further allocation.

2. Electric Vehicles (EV): Upstream & Midstream Lead the Rally

The EV sector’s holding ratio rose by 1.13 pct QoQ to 5.28%. The rotation away from OEMs towards materials and components highlights a preference for earnings visibility and cost-pass-through capabilities.

• Midstream Deep Dive:
  • Cathodes: Significant inflow into LFP and ternary precursors. Hunan Yuneng (+5.66 pct), Dang Sheng Tech (+5.31 pct).
  • Electrolytes: Tinci Materials saw a massive 6.67 pct increase, reflecting confidence in its cost leadership and capacity utilization.
  • Structural Parts: Kedali remains a top holding despite a slight QoQ dip (-1.15 pct), maintaining a high 14.43% ownership ratio.
  • Batteries: Mixed signals. EVE Energy surged (+5.05 pct) due to strong energy storage synergy, while CATL dipped slightly (-1.11 pct) but remains the largest holding by market value.

3. Photovoltaics (PV): Betting on Supply Clearing & Technology Iteration

The PV sector’s holding ratio increased by 1.43 pct QoQ to 4.18%. The flow of capital indicates a belief that the worst of the price war is over for upstream segments, while downstream module makers still face margin pressure.

• Critical Observation: The significant increase in Silicon Material and Silver Paste holdings suggests funds are targeting segments with tighter supply constraints or higher barriers to entry. The rise in Equipment holdings (JieJia WeiChuang +5.30 pct, Jingsheng Electromechanical +4.91 pct) underscores the ongoing CAPEX cycle for next-gen cell technologies (e.g., HJT, BC).

4. Wind Power: Offshore & Large Turbines in Focus

Wind power holdings rose modestly by 0.14 pct to 3.46%. The structure favors整机 (OEMs) and offshore cables, reflecting the acceleration of offshore wind projects.

• OEMs: +1.05 pct increase. Goldwind (+3.34 pct) and Yunda Shares (+2.07 pct) were key beneficiaries.
• Offshore Cables: +0.68 pct increase. Orient Cable (+2.20 pct) remains a high-conviction hold with an 11.70% fund ownership ratio.
• Towers/Piles: +0.24 pct increase. Haili Wind Power (+3.06 pct) showed strong momentum.
• Bearish Signals: Bearings (-0.49 pct) and Blades/Materials (-0.69 pct) saw outflows, possibly due to raw material cost pressures or slower demand in these specific niches.

5. Energy Storage: Divergence Between Hardware and Systems

The aggregate storage holding ratio declined by 2.20 pct to 5.60%, but this masks significant internal rotation. The decline is largely attributed to a reclassification or reduction in pure-play PCS (Power Conversion System) holdings, while high-value-add segments surged.

• Storage Batteries: +2.04 pct increase to 7.97%. EVE Energy and CATL dominate, benefiting from the dual-drive of EV and ESS demand. Narada Power entered the top ranks with a 3.30 pct increase.
• Thermal Management/Fire Safety: +2.27 pct increase to 5.13%. This is a critical thematic play on safety standards. Envicool (+2.92 pct) is the clear leader here.
• Integration/EPC: +1.34 pct increase to 1.98%. Jinpan Technology (+3.93 pct) and Kehua Data (+1.82 pct) are gaining share as system integrators.
• PCS: -0.03 pct decrease to 8.27%. Sungrow and GoodWe saw reductions, possibly due to valuation concerns or margin compression fears in the inverter market.
• New Storage Technologies: +0.35 pct increase. Gravity storage (China Tianying) and Flywheel storage (Huayang Shares) are emerging as speculative but high-potential themes.

6. Industrial Control & Power Grid: Stability and Growth

• Industrial Control: Holdings rose 1.06 pct to 6.21%. Inovance Technology remains the anchor with a 9.84% holding ratio. Supcon Technology saw a massive 7.21 pct increase, reflecting strong confidence in industrial automation and AI-driven manufacturing upgrades.
• Power Grid: Holdings rose 0.33 pct to 1.81%.
  • UHV/High Voltage: +1.22 pct increase. China XD Electric (+1.01 pct) and Sieyuan Electric (+2.07 pct) benefit from state grid investment cycles.
  • Medium Voltage: +0.63 pct increase. Jinpan Technology is a cross-over beneficiary (Grid + Storage).
  • Smart Metering: Declined (-0.73 pct), suggesting a temporary pause in this sub-cycle.

7. Top Fund Favorites & Movers

Top 10 Stocks by Fund Holding Market Value (3Q25):
1. CATL: RMB 207.1 billion (11.29% of market cap)
2. Sungrow: RMB 40.5 billion (12.07% of market cap)
3. EVE Energy: RMB 32.8 billion (17.63% of market cap)
4. Inovance Technology: RMB 22.3 billion (9.84% of market cap)
5. Huayou Cobalt: RMB 16.6 billion (13.25% of market cap)
6. Dongshan Precision: RMB 15.6 billion (11.88% of market cap)
7. Sanhua Intelligent: RMB 12.7 billion (6.25% of market cap)
8. Kedali: RMB 7.7 billion (14.43% of market cap)
9. BYD: RMB 7.7 billion (0.77% of market cap)
10. LONGi Green Energy: RMB 6.6 billion (4.81% of market cap)

Top 10 Stocks by QoQ Increase in Holding Ratio:
1. Supcon Technology: +7.21 pct (to 11.78%)
2. Huayou Cobalt: +6.78 pct (to 13.25%)
3. Sinomine Resource: +6.71 pct (to 10.22%)
4. Tinci Materials: +6.67 pct (to 8.88%)
5. Sunwoda: +6.38 pct (to 10.29%)
6. KeDa Smart: +5.78 pct (to 5.78%)
7. Hunan Yuneng: +5.66 pct (to 9.17%)
8. Shangtai Tech: +5.44 pct (to 5.82%)
9. Dang Sheng Tech: +5.31 pct (to 5.47%)
10. JieJia WeiChuang: +5.30 pct (to 5.37%)

Top 10 Stocks by QoQ Decrease in Holding Ratio:
1. Hopewind Electric: -6.02 pct
2. Dongwei Technology: -5.74 pct
3. Capchem (New宙邦): -5.36 pct
4. Shengquan Group: -5.07 pct
5. Ketai Power: -4.23 pct
6. Dajin Heavy Industry: -3.89 pct
7. Sanbian Sci-Tech: -3.83 pct
8. Xinqianglian: -3.68 pct
9. Baoming Tech: -2.90 pct
10. GoodWe: -2.90 pct

Risks / Headwinds

While the fund flow data is overwhelmingly positive, institutional investors must remain cognizant of the following risks embedded in the sector:

1. Market Volatility & Liquidity Risks:

   • The EE&NE sector is high-beta. Rapid changes in market sentiment, liquidity tightening, or broader equity market corrections can lead to disproportionate drawdowns, regardless of fundamental strength. The sharp QoQ increase in holdings also implies a higher concentration risk; any negative surprise could trigger synchronized selling.

2. Macroeconomic Uncertainty:

   • Global economic slowdowns could dampen demand for discretionary EV purchases and large-scale renewable energy projects.
   • Interest rate environments in key markets (US, Europe) impact the financing costs for renewable energy projects, potentially delaying IPP (Independent Power Producer) CAPEX.

3. Policy & Geopolitical Risks:

   • Trade Barriers: Escalating tariffs or non-tariff barriers (e.g., EU anti-subsidy investigations, US IRA restrictions) on Chinese EVs, batteries, and solar components pose a significant threat to export-oriented revenues.
   • Domestic Policy Shifts: Changes in subsidy structures, grid connection policies, or environmental regulations could alter the profitability landscape unexpectedly.
   • Supply Chain Security: Geopolitical tensions may disrupt access to critical raw materials or overseas markets.

4. Industry-Specific Competitive Dynamics:

   • Price Wars: Despite signs of stabilization, the PV and EV battery sectors remain prone to aggressive price competition, which can erode margins faster than anticipated.
   • Technological Obsolescence: Rapid iteration in battery chemistries (e.g., solid-state, sodium-ion) and PV cell technologies (e.g., perovskite) carries the risk of stranded assets for companies slow to adapt.
   • Overcapacity: While supply-side clearing is underway, residual overcapacity in certain mid-stream segments (e.g., separators, electrolytes) could prolong margin pressure.

5. Data Limitations:

   • This analysis is based on the top ten holdings of mutual funds. It does not capture the full portfolio composition, nor does it account for hedge funds, private equity, or direct foreign investment flows beyond the Stock Connect program. Therefore, it represents a partial, albeit significant, view of institutional sentiment.

Rating / Sector Outlook

Sector Rating: Overweight (Maintained)

Outlook:
The 3Q25 fund holding data confirms a structural bullishness towards the Electrical Equipment and New Energy sector. The broad-based increase across all sub-sectors, coupled with the significant overweight position relative to market cap, indicates that institutional investors view the sector as a primary driver of alpha in the current market environment.

• Short-Term (1-2 Quarters): Expect continued volatility as positions are adjusted. However, the momentum favors upstream materials (Lithium, Silicon) and technology leaders (Battery, Inverter, Automation) due to improving pricing power and earnings visibility.
• Medium-Term (6-12 Months): The sector is well-positioned to benefit from the global energy transition, China’s "Dual Carbon" goals, and grid modernization initiatives. Companies with strong balance sheets, technological moats, and diversified geographic revenue streams are likely to outperform.
• Strategic Focus: Investors should prioritize companies with:
  1. Cost Leadership: Ability to maintain margins in competitive environments (e.g., CATL, Tinci Materials, Tongwei).
  2. Technological Edge: Leaders in next-gen tech (e.g., Supcon in automation, JieJia in PV equipment, Envicool in thermal management).
  3. Global Expansion: Firms successfully navigating geopolitical hurdles to capture overseas market share (e.g., Sungrow, Inovance, Orient Cable).

Sub-Sector Preferences:
1. Energy Storage (Thermal & Integration): High growth trajectory, increasing safety regulations driving value.
2. EV Midstream (Cathodes/Electrolytes): Cyclical recovery play with improved supply-demand balance.
3. Industrial Control: Defensive growth with AI/automation tailwinds.
4. PV Upstream (Silicon/Equipment): Beneficiaries of supply consolidation and tech iteration.
5. Wind (Offshore Cables/OEMs): Policy-driven acceleration in offshore installations.

Investment View

The 3Q25 fund holdings analysis provides a clear roadmap for institutional investors. The data suggests that the "smart money" is moving beyond broad beta exposure to the EE&NE sector and is instead engaging in selective alpha generation through precise sub-sector and stock picking.

1. The "Quality & Leadership" Premium is Widening

The concentration of holdings in top-tier companies like CATL, Sungrow, Inovance, and Huayou Cobalt demonstrates a flight to quality. These companies have proven their ability to navigate cycles, maintain R&D leadership, and expand globally. For investors, this reinforces the strategy of overweighting industry leaders who can consolidate market share during periods of industry consolidation. The significant increases in Supcon Technology and Jinpan Technology further highlight the premium placed on companies with strong domestic moats and expanding international footprints.

2. Cyclical Rebound Plays are Gaining Traction

The substantial inflows into Lithium Resources (Ganfeng, Tianqi) and PV Silicon (Tongwei, Daqo) signal that institutions are betting on a cyclical bottom. After a prolonged period of price declines, the expectation of supply-side discipline and demand recovery is driving capital back into these highly elastic segments. Investors should monitor commodity prices and inventory levels closely, as these will be the key catalysts for further upside in these names. The sharp rise in Tinci Materials and Hunan Yuneng suggests a similar thesis for battery materials, where margin stabilization is imminent.

3. Technology Iteration as a Key Alpha Driver

The increased allocations to PV Equipment (JieJia, Jingsheng) and New Energy Storage (Gravity, Flywheel) underscore the importance of technological disruption. In mature industries like PV and Batteries, growth is increasingly driven by efficiency gains and new applications rather than pure volume expansion. Investors should focus on companies that are enablers of this transition—those providing the tools (equipment) or the novel solutions (new storage types) that define the next generation of energy infrastructure. The rise of Sodium-ion and Composite Current Collectors in fund portfolios, albeit from a small base, indicates early-stage positioning for future tech shifts.

4. Safety and System Integration are Emerging Themes

The standout performance of Thermal Management/Fire Safety stocks (Envicool) and System Integrators (Jinpan, Kehua) within the Energy Storage sector reveals a nuanced understanding of value chains. As storage deployments scale, safety incidents and system efficiency become critical differentiators. Companies that provide holistic solutions, ensuring reliability and performance, are capturing more value than pure hardware component suppliers. This trend is likely to persist as regulatory standards tighten globally.

5. Grid Modernization is a Underappreciated Tailwind

While the Grid sector’s overall weighting is still slightly underweight, the QoQ increase in UHV and Medium Voltage holdings suggests growing recognition of the grid’s bottleneck role in renewable integration. Investments in grid infrastructure are less susceptible to consumer demand fluctuations and are backed by strong state-led CAPEX plans. Companies like Sieyuan Electric and China XD Electric offer a blend of defensive stability and growth from grid upgrades, making them attractive for risk-adjusted returns.

6. Overseas Capital Alignment

The analysis of overseas holdings (Stock Connect) shows alignment with domestic funds in key areas like CATL, Inovance, and Macrofab (Hongfa), but also highlights differences. Overseas investors have been reducing exposure to some secondary equipment and PV names, possibly due to geopolitical concerns. However, the increase in overseas holdings for Core Components and Power Electronics suggests that global capital still recognizes the competitive advantage of Chinese manufacturing in these high-precision segments. This divergence creates opportunities for arbitrage and suggests that domestic-led rallies in these sectors may have sustainable foreign support if geopolitical tensions ease.

Strategic Recommendations for Institutional Portfolios:

• Core Holdings (High Conviction): Maintain or increase positions in CATL, Sungrow, Inovance Technology, and Huayou Cobalt. These serve as the anchor for sector exposure, offering liquidity, stability, and long-term growth.
• Satellite Holdings (Cyclical/Tactical): Add exposure to Lithium Miners (Ganfeng, Tianqi) and PV Silicon/Cell Makers (Tongwei, Aiko) to capture the cyclical rebound. Monitor price trends closely for entry/exit timing.
• Thematic Bets (High Growth/High Risk): Allocate a smaller portion to Thermal Management (Envicool), PV Equipment (JieJia), and Industrial Automation (Supcon) to benefit from structural trends in safety, tech iteration, and smart manufacturing.
• Risk Management: Hedge against geopolitical risks by diversifying across companies with varying degrees of overseas revenue exposure. Avoid over-concentration in purely domestic-facing OEMs or module assemblers facing intense price competition.

Conclusion

The 3Q25 fund holdings data paints a picture of a sector in transition—from a phase of indiscriminate growth to one of selective, quality-driven expansion. The broad-based increase in holdings is not just a reflexive bounce but a calculated reallocation towards segments with improved fundamentals, technological leadership, and strategic importance in the energy transition. For institutional investors, the current environment offers a compelling risk-reward profile, provided they navigate the sub-sector nuances and remain vigilant to macro and policy risks. The EE&NE sector remains a cornerstone of the future economy, and the recent capital flows confirm its enduring appeal to sophisticated investors.

Appendix: Detailed Data Tables

Table 1: EE&NE Sector Fund Holdings Trend (2019Q1 - 2025Q3)

Source: Wind, Dongwu Securities Research Institute

Table 2: Sub-Sector Breakdown of EE&NE Stocks Analyzed

Source: Wind, Dongwu Securities Research Institute

Table 3: Top 10 Stocks by Fund Holding Ratio (% of Total Market Cap) - 3Q25

Note: Some data points for ranks 7-10 are inferred from the text description of "Top 10 by Ratio". Exact market values for all may not be explicitly listed in the top 10 value table but are derived from the ratio analysis.

Table 4: Overseas Holdings (Stock Connect) as % of Free Float - Key Stocks

Source: Wind, Dongwu Securities Research Institute

Detailed Sub-Sector Analysis & Investment Logic

1. Electric Vehicles: The Great Rotation

The EV sector’s performance in 3Q25 is characterized by a distinct rotation from downstream to upstream. This shift is driven by several factors:

• Margin Pressure at OEM Level: Intense price wars among EV manufacturers have compressed margins, making OEMs less attractive from a pure profitability standpoint. Funds reduced their holdings in BYD (-0.97 pct) and the overall OEM category (-0.50 pct).
• Upstream Price Stabilization: Lithium carbonate prices, after a steep decline, have shown signs of stabilization. This reduces inventory write-down risks for miners and material producers. The 1.24 pct increase in lithium resource holdings reflects this improved outlook. Ganfeng Lithium and Tianqi Lithium are seen as beneficiaries of a potential price floor.
• Midstream Consolidation: The midstream battery material sector is undergoing consolidation. Leaders with cost advantages and long-term contracts are gaining market share. The significant inflows into Cathodes (+3.40 pct) and Electrolytes (+1.70 pct) suggest that funds believe these segments have passed the trough of profitability. Tinci Materials’ massive 6.67 pct increase is a testament to its dominant position in electrolytes and its vertical integration strategy.
• Technological Differentiation: The rise in New Tech holdings (+0.29 pct), particularly in Sodium-ion and Composite Current Collectors, indicates that investors are looking for the next wave of innovation. These technologies offer potential cost reductions and performance improvements, creating new growth avenues beyond traditional Li-ion.

Investment Implication: Focus on midstream leaders with strong cost control and upstream resource security. Be cautious on OEMs unless they demonstrate clear differentiation in branding, technology, or overseas expansion.

2. Photovoltaics: Navigating the Cycle

The PV sector’s 1.43 pct QoQ increase is a sign of cautious optimism. The internal divergence is key:

• Upstream/Midstream Recovery: The sharp rise in Silicon Material (+2.21 pct) and Wafers (+0.45 pct) holdings suggests that funds anticipate a supply-demand rebalancing. With many smaller players exiting the market due to losses, the remaining leaders like Tongwei and LONGi are expected to enjoy better pricing power.
• Technology-Driven Equipment Demand: The 2.47 pct increase in Equipment holdings is a strong signal. The transition to N-type cells (TOPCon, HJT, BC) requires new production lines. Companies like JieJia WeiChuang and Jingsheng Electromechanical are direct beneficiaries of this CAPEX cycle, regardless of short-term module demand fluctuations.
• Auxiliary Material Tightness: The increase in Silver Paste (+2.30 pct) and Glass (+1.07 pct) holdings points to specific supply bottlenecks. Silver paste consumption is rising with N-type adoption, and glass supply is constrained by energy costs and environmental regulations. Polymer Material (silver paste leader) saw a huge 4.26 pct increase.
• Downstream Caution: The relatively modest increase in Modules and slight decrease in Inverters reflect ongoing concerns about overseas trade barriers and margin compression in highly competitive assembly markets.

Investment Implication: Prefer upstream/material leaders and equipment suppliers over downstream assemblers. Look for companies with exposure to next-gen cell technologies and those with strong overseas channels to mitigate domestic competition.

3. Energy Storage: Beyond the Battery

The storage sector’s narrative is shifting from pure battery volume to system value and safety.

• Battery Dominance: Storage Batteries remain the core, with EVE Energy and CATL leading. The 2.04 pct increase confirms the strong demand for ESS batteries, driven by both utility-scale projects and residential storage.
• Safety as a Premium: The 2.27 pct surge in Thermal/Fire Safety holdings is one of the most significant thematic moves. As storage installations grow, safety incidents become a major concern for regulators and insurers. Envicool, a leader in liquid cooling, is uniquely positioned to benefit from stricter safety standards.
• Integration Value: The rise in Integration/EPC (+1.34 pct) suggests that investors recognize the value add in system design, grid connection, and operational efficiency. Jinpan Technology and Kehua Data are evolving from component suppliers to solution providers.
• PCS Saturation? The slight decline in PCS holdings may indicate that the market perceives this segment as becoming commoditized, with margins under pressure from intense competition.

Investment Implication: Diversify beyond pure battery plays. Invest in companies that enhance system safety (thermal management) and provide integrated solutions (EPC/Software). Monitor regulatory developments on storage safety standards.

4. Wind Power: Offshore Acceleration

Wind power’s modest gain hides a strong preference for offshore-related segments.

• Offshore Wind Momentum: The increase in Offshore Cables (+0.68 pct) and Towers/Piles (+0.24 pct) aligns with the acceleration of offshore wind projects in China and Europe. Orient Cable is a key beneficiary due to its high technical barriers in HVDC submarine cables.
• OEM Consolidation: The 1.05 pct increase in OEM holdings, led by Goldwind and Yunda, suggests confidence in the leading turbine manufacturers’ ability to maintain margins despite price pressures, possibly through service revenue and overseas expansion.
• Component Weakness: The decline in Bearings and Blades may reflect specific company issues or a temporary lag in demand for these components compared to the final assembly.

Investment Implication: Focus on offshore wind supply chain leaders, particularly in cables and foundations. OEMs with strong service businesses and international presence are preferred.

5. Industrial Control & Grid: The Defensive Growth Engines

• Industrial Automation: The 1.06 pct increase in Industrial Control holdings, led by Inovance and Supcon, reflects the long-term trend of manufacturing upgrading and automation in China. Supcon’s massive 7.21 pct increase highlights its success in expanding from process automation to discrete manufacturing and software solutions.
• Grid Investment: The 0.33 pct increase in Power Grid holdings, particularly in UHV (+1.22 pct), is driven by state-led investments to transmit renewable energy from remote areas to load centers. Sieyuan Electric and China XD Electric are key players in this space.

Investment Implication: These sectors offer more stable growth with lower cyclicality than EV/PV. They are suitable for core holdings seeking steady compounding. Focus on companies with strong R&D and expanding product portfolios.

Final Thoughts

The 3Q25 fund holdings data provides a robust validation of the EE&NE sector’s resilience and growth potential. The broad-based increase in institutional ownership, coupled with strategic rotations within sub-sectors, indicates a mature and discerning investor base. By focusing on quality, technology, and cyclical recovery, funds are positioning themselves to capture the long-term value creation in the energy transition. For institutional investors, the current landscape offers ample opportunities for alpha generation through careful stock selection and sub-sector allocation, while managing risks related to geopolitics and market volatility. The EE&NE sector remains a pivotal component of a forward-looking investment portfolio.