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John Laing Environmental Asset Group JLEN

Closed-end funds and OEICs
TheMotorcycleBoy
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Re: John Laing Environmental Asset Group JLEN

#215478

Postby TheMotorcycleBoy » April 16th, 2019, 6:11 pm

Thanks Uncle,

This is useful info.

UncleEbenezer wrote:All of them trade at premia these days. But what that actual means is not entirely straightforward: rather it means the market is putting a higher value on the assets than the formulae used by the managers.

A ha! That explains why when one views the market price vs. NAV comparision (for example on the HL site), why the NAV plot it very "step-like", i.e. the NAV here is not the current weighted sum of the real equity shares (e.g. in the case of the City of London IT - CTY), but rather is the current month valuation as according to the firm's accountant.

UncleEbenezer wrote:You might find it helpful to think of it as you would a bond or preference share - which tend to trade at substantial premia these days (at least, where the market has confidence in the issuer). You put a value not on the nominal asset but on the income stream, within a confidence interval representing your view on how you expect the management to perform in sustaining and gradually growing that income.

Yes, this is a helpful analogy.

UncleEbenezer wrote:Also worth noting, Renewable Infrastructure assets periodically raise more money (to acquire more assets). JLEN recently had a placing. Sometimes you get the opportunity to buy at a slightly more favourable price, as in this recent case with a sector peer: viewtopic.php?f=26&t=16737

I get it. So "it" (JLEN) is fairly similar to a regular company in that guise.

Matt

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Re: John Laing Environmental Asset Group JLEN

#216796

Postby richfool » April 23rd, 2019, 12:14 pm

I just came across this Citywire article from Sept 2018 about Renewables and Infrastructure (and which makes reference to JLEN):
Pinggera (pictured) said demand for ‘additional real asset exposure’ led to the launch of the new fund and ‘we see real assets as an ideal way to reflect our long-held "pillars of a functioning economy" investment theme and provide access to long-term structural and demographic trends’.

The investment theme looks at what is needed to fulfil the needs of large populations and the companies addressing the needs of rising life expectancy and population density.

Pinggera’s Multi-Strategy fund includes real assets exposure that provides some idea of the investments he favours.

The fund's annual report shows that at the end of last year, he was invested in HICL Infrastructure (HICL), Tritax Big Box Reit (BBOX), Greencoat UK Wind (UKW), property business Grainger (GRI), John Laing Environmental Assets (JLEN), and Triple Point Social Housing (SOHO).

https://citywire.co.uk/funds-insider/ne ... r/a1153821


Also another Citywire article from Feb this year about Renewables:
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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Re: John Laing Environmental Asset Group JLEN

#216929

Postby TheMotorcycleBoy » April 24th, 2019, 7:20 am

richfool wrote:I just came across this Citywire article from Sept 2018 about Renewables and Infrastructure (and which makes reference to JLEN):
Pinggera (pictured) said demand for ‘additional real asset exposure’ led to the launch of the new fund and ‘we see real assets as an ideal way to reflect our long-held "pillars of a functioning economy" investment theme and provide access to long-term structural and demographic trends’.

The investment theme looks at what is needed to fulfil the needs of large populations and the companies addressing the needs of rising life expectancy and population density.

Pinggera’s Multi-Strategy fund includes real assets exposure that provides some idea of the investments he favours.

The fund's annual report shows that at the end of last year, he was invested in HICL Infrastructure (HICL), Tritax Big Box Reit (BBOX), Greencoat UK Wind (UKW), property business Grainger (GRI), John Laing Environmental Assets (JLEN), and Triple Point Social Housing (SOHO).

https://citywire.co.uk/funds-insider/ne ... r/a1153821


Also another Citywire article from Feb this year about Renewables:
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

Thanks for this, RF

Greencoat UK Wind (UKW) looks interesting. Though as UncleEb commented earlier on, like the others, it's currently trading at a premium. So whilst I'm glad to be learning more about Renewable sector ITs I'm still unsure about when to open a position. But presumably these assets are not as cyclical as many regular standalone equities e.g. oil or mining, or have a "company-type life-time" that is an early growth period, then maybe a plateau, or slow up and down cycles. Presumably assets of this type will continue to grow over the decades as we come out of fossil fuel energy sources, and the aggregate nature of the IT insulates the investor to an extent, against isolated plant failures. Although people have noted earlier that this is an un-equity like asset (please excuse my grammar) I can't help but suspect that very recent rises in market price reflect the rise which many share assets are also seeing.

What's unusual (and causing any buy-it-now desires to be suppressed!), is how if you look at the chart from HL

https://www.hl.co.uk/shares/shares-sear ... -group-npv and select the 1Y view, it's apparent that despite around about March (?) this year a fall in NAV(*) is reported, from that point we observe a rise in MP. Perhaps reinforcing my earlier "all boats rising" suspicion.

Matt

(*) Are current energy prices used as an input to the NAV calculations?

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Re: John Laing Environmental Asset Group JLEN

#216939

Postby LittleDorrit » April 24th, 2019, 8:36 am

(*) Are current energy prices used as an input to the NAV calculations?

The short answer will be yes.
With any investment of this type you will need to read through the Strategic Report forming part of the published annual accounts for the company.

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Re: John Laing Environmental Asset Group JLEN

#216959

Postby TheMotorcycleBoy » April 24th, 2019, 10:13 am

LittleDorrit wrote:(*) Are current energy prices used as an input to the NAV calculations?

The short answer will be yes.
With any investment of this type you will need to read through the Strategic Report forming part of the published annual accounts for the company.

I see what you mean. I'm currently at work, but this morning I quickly glanced at a chart and observed the NAV had fallen around March time, and guessed that this could be due to the warming up of the season, and less domestic heating expenditure.

Matt


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