The Renewable Inrastructure Group (TRIG)

[UncleEbenezer]

Lots of discussion in viewtopic.php?f=8&t=17343

[Dod101]

Thanks to all and UE I have read through most of the thread you mentioned. A lot in it! I will take a punt on TRIG and see what happens. Compared to the disasters all around us they look quite attractive.

Dod

[ReallyVeryFoolish]

I apologise in advance for raising this off topic comment. I posted this a couple of weeks ago and didn't get much interest. I think it's because many posters here seems to think OEICs are a somehow inferior vehicle, and also my proposition is rather a fund of funds. Again, often frowned on here.

On the upside, here is a clean energy investment portfolio, paying a reasonable but not high yield with the assumed advantage of a professional manager. Who may or may not be much more astute at managing the issues I have outlined here than I am. Worth a look?

VT Gravis Clean Energy Income Fund - A UCITS V, open ended investment company (OEIC) investing in a portfolio of global listed securities involved in the operation, funding, construction, generation and supply of clean energy.

https://www.graviscapital.com/funds/gra ... ergy/about

[Dod101]

Thanks RVF. I am one of those who regards an OEIC structure as inferior to an IT structure for all the reasons that have been well ventilated here over the last few years, I think we could say. I am not though against a fund of funds although I recognise that there is usually a rather higher charge because of the two layers of fees.

I will be very happy to take a look tomorrow as time ran out on me today and I have not yet bought TRIG

Dod

[Urbandreamer]

About 5.5% of my portfolio is in TRIG, and that's enough for the moment.

A couple of points that may be worth making.

The predicted life of a turbine might be 25 years, but some will fail early and none will reach the end without quite a bit of maintenance. They are powerful machines with bit's exposed to the worst that the climate can throw at them. Just consider leading edge erosion for a second, 3M explain it quite well, but they are selling maintenace products.

They are also used to generate electricity. Electricity prices are very much subject to political risks, though this is somewhat mitigated by long term contracts.

If you haven't hit the button Dod, you might be best advised to wait 6 weeks. In April a formal re-evaluation of wholesale electricity prices was started. It is due to be published soon. They were expected to be lower.
https://citywire.co.uk/investment-trust ... s/a1349562

Despite all the above I am very happy with my holding. I'm unlikely to top up, as these days I'm looking for growth rather than yield, but likewise unlikely to sell.

[richfool]

If you don't mind splitting the investment focus between utilities, infrastructure and renewables, then (EGL Ecofin Global Utilities & Infrastructure) might be worth considering. It invests in all three (globally). (Renewables c 22%). Yield: 4.11% Disc -2.87%. Pays dividends quarterly.

https://www.hl.co.uk/shares/shares-sear ... ructure-1p

I hold renewables: TRIG & JLEN. And in the infrastructure sector: EGL, INPP, & SEQI.

[scotia]

Lots of discussion in viewtopic.php?f=8&t=17343

And I recollect that you mentioned that you had invested in First State Global Listed Infrastructure - an OEIC which means you can buy at NAV, instead of having to pay a hefty premium for an IT. An update - its now called First Sentier Global Listed Infrastructure.

[simoan]

I bought a lump of TRIG in the sell-off in March. It just struck me that the NAV didn't suddenly drop as much as the share price collapse indicated, so it was a bit of a no-brainer, amongst several others at that time. However, I am now considering selling as the outlook for electricity pricing doesn't look great to me. I realise some of these issues have been dealt with already but these would be my major concerns if I was thinking of buying:

1. How is the NAV calculated and how often? The underlying assets are not liquid and the valuation probably uses some kind of DCF model. I have a serious distrust of DCF models!!

2. The dividend has never been fully covered by free cashflow. Why?

3. The company employs truly epic shareholder dilution with constant equity raisings: in the 5 years to end of FY19 shares in issue increased by 442%! And Private investors seem to be excluded from the equity raises.

All the best, Si

[Dod101]

I bought a lump of TRIG in the sell-off in March. It just struck me that the NAV didn't suddenly drop as much as the share price collapse indicated, so it was a bit of a no-brainer, amongst several others at that time. However, I am now considering selling as the outlook for electricity pricing doesn't look great to me. I realise some of these issues have been dealt with already but these would be my major concerns if I was thinking of buying:

1. How is the NAV calculated and how often? The underlying assets are not liquid and the valuation probably uses some kind of DCF model. I have a serious distrust of DCF models!!

2. The dividend has never been fully covered by free cashflow. Why?

3. The company employs truly epic shareholder dilution with constant equity raisings: in the 5 years to end of FY19 shares in issue increased by 442%! And Private investors seem to be excluded from the equity raises.

All the best, Si

I must say that, apart from the electricity pricing, the constant dilution does bother me. As far as electricity pricing is concerned, they are presumably selling in to other markets besides the UK considering that they have sites in France Germany and Sweden as well. It would suggest though that they must be seeing good profit increases as they seem still to manage decent increases in their dividend each year. I need to take a closer look.

Dod

[Dod101]

Thanks to all who have contributed to this thread. Very interesting and educational for me. I have decided to change tack completely, forego the income and have bought into Baillie Gifford China Growth, Witan Pacific that was.

I will though keep an eye on this company.

Dod

[ReallyVeryFoolish]

Thanks to all who have contributed to this thread. Very interesting and educational for me. I have decided to change tack completely, forego the income and have bought into Baillie Gifford China Growth, Witan Pacific that was.

I will though keep an eye on this company.

Dod

Good luck, that's a huge change in direction. I am still mulling over what to do. National Grid has been my favoured energy stock for a long while in the electricity industry. I very recently bought back into them at a good yield for my damaged goods portfolio and I am relieved to say have even made a short term gain on them too.

RVF

[Dod101]

I hold National Grid and have done for a long while. I recently reinstated SSE having been a very long term holder. I sold some time before they sold their retail side and now that the dust has settled and they have committed to realising some fringe investments to pay down debt, I feel a bit happier with them now. They have always had a commitment to their dividend.

As for TRIG, I mulled over the various comments on this thread and just thought that maybe now is not the time. I have eyed BG China Growth since it was taken over by BG. I like them as an investment house.

Dod

[ReallyVeryFoolish]

I hold National Grid and have done for a long while. I recently reinstated SSE having been a very long term holder. I sold some time before they sold their retail side and now that the dust has settled and they have committed to realising some fringe investments to pay down debt, I feel a bit happier with them now. They have always had a commitment to their dividend.

As for TRIG, I mulled over the various comments on this thread and just thought that maybe now is not the time. I have eyed BG China Growth since it was taken over by BG. I like them as an investment house.

Dod

All the best it could be an exciting ride! Not one for the bottom drawer and forget about. I sold NG during the comrade Corbyn scare. Broke even on that and bought a small stake again this week around the 850p mark. I too will be watching how the renewables industry continues to develop. Irrespective, NG will still transmit the overwhelming majority of electricity in England and Wales no matter the source, wind, hydro or gas.

RVF

[UncleEbenezer]

I bought a lump of TRIG in the sell-off in March.

Not a bad decision. But many other stocks had a much bigger dip, so there was potential for a bigger gain from a March buy.

At least, until the next fall. Or if we get a government that fails to print more money to prevent a real correction - which they're terrified to do because the biggest fall would then be the highest-leveraged - i.e. house prices.

[simoan]

I bought a lump of TRIG in the sell-off in March.

Not a bad decision. But many other stocks had a much bigger dip, so there was potential for a bigger gain from a March buy.

At least, until the next fall. Or if we get a government that fails to print more money to prevent a real correction - which they're terrified to do because the biggest fall would then be the highest-leveraged - i.e. house prices.

Well, yes, but the sell-of in March was like shooting fish in a barrel. TRIG was just one of many new positions opened and top-ups I made in March and April. Such is the problem of being 30% in cash at the time It may not have risen as much as some others but then with a couple of quarterly dividends it returned around 15% in 6 months with fairly low risk. I think the risk is now higher and the rewards have lessened, so I sold my TRIG holding this PM. I was due to review it this weekend but this thread brought that decision forward. Thanks Dod!

All the best, Si

[Wyneric]

Curious to know whether anyone has considered INRG (ishares Global Clean Energy ETF),

https://www.ishares.com/uk/individual/en/products/251911/ishares-global-clean-energy-ucits-etf

The step change market view, from fossil fuel to renewable energy since the March lock down has been astounding, especially as the likes of Shell are about to follow BP into the world of green energy.
Probably the kiss of death but I'm struggling to see a short/medium term downside, especially if Biden gets in...

I have 16% of my SIPP in this...which probably sounds a tad reckless...

[ReallyVeryFoolish]

Curious to know whether anyone has considered INRG (ishares Global Clean Energy ETF),

https://www.ishares.com/uk/individual/en/products/251911/ishares-global-clean-energy-ucits-etf

The step change market view, from fossil fuel to renewable energy since the March lock down has been astounding, especially as the likes of Shell are about to follow BP into the world of green energy.
Probably the kiss of death but I'm struggling to see a short/medium term downside, especially if Biden gets in...

I have 16% of my SIPP in this...which probably sounds a tad reckless...

Yes, but I can't find it in GBP, only USD. That's the only reason I haven't bought it.

RVF

[88V8]

I was surprised to see how TRIG dilutes its holders.

Interesting point about upcoming maintenance. Rolls-Royce (aero) for instance makes half its income from maintenance.

Currently, Blackrock Energy BERI is yielding 6.6%, admittedly no increases for a while. The SP is pretty stable at present.
Trading at a 9% discount.
They are not neglectful of renewables - portfolio here https://www.blackrock.com/uk/individual ... rough=true - and I think I would rather let them manage the transition than invest on a one-trick pony like TRIG, much as one's heart may approve of the general idea.

V8

[ReallyVeryFoolish]

I was surprised to see how TRIG dilutes its holders.

Interesting point about upcoming maintenance. Rolls-Royce (aero) for instance makes half its income from maintenance.

Currently, Blackrock Energy BERI is yielding 6.6%, admittedly no increases for a while. The SP is pretty stable at present.
Trading at a 9% discount.
They are not neglectful of renewables - portfolio here https://www.blackrock.com/uk/individual ... rough=true - and I think I would rather let them manage the transition than invest on a one-trick pony like TRIG, much as one's heart may approve of the general idea.

V8

Thanks for that, I was unaware of BERI. Having looked at it's top 10 holdings at HL my interest was very short-lived indeed.

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

RVF

[mc2fool]

I was surprised to see how TRIG dilutes its holders.

What does it matter? So you end up with 0.001% of a £2bn IT instead of 0.002% of a £1bn IT; the £ value of your holding is the same.

And Private investors seem to be excluded from the equity raises.

Well that's certainly not true of all of them, I've had at least three offers in the time I've held them (since very soon after launch).