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TRIG

General discussions about equity high-yield income strategies
daveh
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TRIG

#198836

Postby daveh » February 4th, 2019, 2:27 pm

I've got some dividends to reinvest. I was looking at II's 10 shares to earn 10 grand (in dividend income) in their regular marketing email and their portfolio included the Infrastructure Fund TRIG.

(I'd post the link but its 3 lines long but I think this is a version: https://www.moneyobserver.com/our-analy ... ncome-2019 ).

Any thoughts on this as a HYP investment.

Yielding 5.6% (2018 dividend target of 6.5p - 3 qtrlys of 1.625p already paid)
Growing dividend (6.05 in 2014 to 6.50p in 2018)
Share price @116p
NAV as of September 2018 107.8p (so at an ~ premium to net asset value of 8%)
On going costs of 1.1% (but likely to fall according to their EGM statement)
Invests in UK and northern European renewable energy projects (mostly wind and solar)
Guernsey registered closed ended fund.

Tempted as a way to invest in renewables, good yield, but don't like the relatively high on going charges or the premium to NAV

mattman74
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Re: TRIG

#198878

Postby mattman74 » February 4th, 2019, 5:13 pm

I recently topped up.
I also have Greencoat UK wind (UKW) and Bluefield Solar Income (BSIF) in this space.
All are on high premia but TRIG usually is not so high as BSIF and UKW.

TRIG assigns debt at the asset level (eg the solar array has a mortgage) but UKW does so at a company level.
It is run by the same people who run HICL Infrastructure so they seem to know what they are doing.
Apparently the returns in the TRIG IT are related to power prices so the yield is not specifically inflation linked unlike some other renewable energy ITs (perhaps the reason for the lower premium for TRIG.)

I've held renewable energy ITs for quite a while and they produce a boring steady output of gently increasing dividends with low volatility. I treat them like a bond proxy but this is probably the wrong way to think about them.

Renewable energy ITs are about 6% of my portfolio and it nice to see them unaffected by the recent market dips.

I hope that helps,

Matt

richfool
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Re: TRIG

#198947

Postby richfool » February 4th, 2019, 10:39 pm

I hold JLEN in that sector, which has exposure to solar, wind and some waste disposal (anaerobic digestion), currently yields 5.74% and is at a premium of 9.6%. Dividend paid qtly.

I had also looked at TRIG a couple of times, but have stayed with JLEN.

Matt seems to have a good handle on, and knowledge of, the situation.

daveh
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Re: TRIG

#199103

Postby daveh » February 5th, 2019, 5:05 pm

Well I've put in a buy request for tomorrow's cheap dealing day. Annoyingly the price is climbing today, up 2p to 118p. Let's see how it does once I'm on board!

TheMotorcycleBoy
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Re: TRIG

#202799

Postby TheMotorcycleBoy » February 21st, 2019, 6:38 am

richfool wrote:I hold JLEN in that sector, which has exposure to solar, wind and some waste disposal (anaerobic digestion), currently yields 5.74% and is at a premium of 9.6%. Dividend paid qtly.

I had also looked at TRIG a couple of times, but have stayed with JLEN.

Matt seems to have a good handle on, and knowledge of, the situation.

Sorry to butt in into the thread. As a newbie I've not spent much time on researching ITs, but JLEN looks fairly interesting to me as a way of adding some diversify into our folio.

So for JLEN
https://jlen.com/wp-content/uploads/201 ... tsheet.pdf

is the premium/discount to NAV calculated by referring to the NAV figure (I can see 100.4p as the figure for 30 Sept 2018 on the above PDF), and the current price of 111p?

that is:
100 x (111 - 100.4)/100.4 = 10%

So presumably the share price has arisen slightly since you did your calculations?

thanks Matt

richfool
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Re: TRIG

#202891

Postby richfool » February 21st, 2019, 12:05 pm

TheMotorcycleBoy wrote:
richfool wrote:I hold JLEN in that sector, which has exposure to solar, wind and some waste disposal (anaerobic digestion), currently yields 5.74% and is at a premium of 9.6%. Dividend paid qtly.

I had also looked at TRIG a couple of times, but have stayed with JLEN.

Matt seems to have a good handle on, and knowledge of, the situation.

Sorry to butt in into the thread. As a newbie I've not spent much time on researching ITs, but JLEN looks fairly interesting to me as a way of adding some diversify into our folio.

So for JLEN
https://jlen.com/wp-content/uploads/201 ... tsheet.pdf

is the premium/discount to NAV calculated by referring to the NAV figure (I can see 100.4p as the figure for 30 Sept 2018 on the above PDF), and the current price of 111p?

that is:
100 x (111 - 100.4)/100.4 = 10%

So presumably the share price has arisen slightly since you did your calculations?


thanks Matt

Hi Matt, I usually get my figures from either Citywire or Hargreaves Lansdowne.

Citywire currently shows 11.1% premium (yield 5.89%). HL shows premium: 11.12%. Yield: 5.68%%.

https://citywire.co.uk/funds_insider/in ... undID=3775

https://www.hl.co.uk/shares/shares-sear ... -group-npv

Regards

TheMotorcycleBoy
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Re: TRIG

#202908

Postby TheMotorcycleBoy » February 21st, 2019, 1:04 pm

richfool wrote:Hi Matt, I usually get my figures from either Citywire or Hargreaves Lansdowne.

Citywire currently shows 11.1% premium (yield 5.89%). HL shows premium: 11.12%. Yield: 5.68%%.

https://citywire.co.uk/funds_insider/in ... undID=3775

https://www.hl.co.uk/shares/shares-sear ... -group-npv

Regards

Thanks for this...
Would I be right to assume this is currently trading quite expensively as these ITs go? That is 11%+ a big premium, i.e. should I wait till it's on NAV, etc.?

Or maybe it's just a reflection that the asset is a good well run one?

many thanks
Matt

richfool
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Re: TRIG

#202915

Postby richfool » February 21st, 2019, 1:19 pm

TheMotorcycleBoy wrote:Thanks for this...
Would I be right to assume this is currently trading quite expensively as these ITs go? That is 11%+ a big premium, i.e. should I wait till it's on NAV, etc.?

Or maybe it's just a reflection that the asset is a good well run one?

many thanks
Matt

Hi Matt, I think a lot of it is down to what is in vogue/popular currently. These (alternative energy trusts) tend to be attractive to those seeking higher dividend yields, with a degree of index-linking. There is also the argument that they are less correlated with equities (in the event of a bear market). Note the use of the word less. I think there is a potential to be affected by government tax changes. The fact that JLEN holds wind, solar and waste disposal provides some diversification within those types of energy sources.

I bought a couple of years back, when the premium (to NAV) was lower, I think c 5% or 6%, and not long after the Government had reduced their subsidies, so they were somewhat out of favour for a time.

Hariseldon58
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Re: TRIG

#203032

Postby Hariseldon58 » February 21st, 2019, 8:32 pm

For JLEN and the like where subsidies have been reduced, it tends to be positive for those trusts already holding these investments, scarcity value perhaps.

richfool
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Re: TRIG

#216791

Postby richfool » April 23rd, 2019, 11:53 am

Just spotted this Citywire article from Feb 2019 about Renewables, which also makes reference to TRIG:
Greencoat UK Wind’s (UKW) extension of the life of its windfarms signals a positive trend as other renewable infrastructure funds listed on the UK stock market look to do the same, says Foresight fund manager Mark Brennan.


https://citywire.co.uk/funds-insider/ne ... s/a1195138


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