Investing in Green Infrastructure Funds (ITs)

[richfool]

Don't have proper internet acess currently to explore this properly, but is it worth selling current holding and buying back through the offer, at the lower offer price, assuming that the SP hasn't dropped any further? Or just leave/keep existing holding and top up through the offer?

Hi richfool, Well you can’t buy the offer directly (to get it at 123) so it all depends on where the price drops to ahead of the closing date. It’s already down to 126.2, personally I think you’ll be lucky to buy at less than 124 and even that’s pretty optimistic based on what we saw with UKW. So selling at 126.2 to buyback at 124 (at best) ?. Well I’m not going to do that, you’d have commission to pay on the buy and the sell and stamp duty (I think ?) on the buy. Shame we didn’t sell at 130+ though !.

Err if you haven’t got internet access how come you can use this site....?

ATB

Pref

Thanks for your thoughts.

I am currently using my smartphone to access, as opposed to my laptop which has a problem with acessing wifi.

Re the current discussion about renewables and understanding their accounts, may I throw in an alternative perspective:

Have a look at Capital Gearing Trust IT run by Peter Spiller. In the R&A's, he has holdings of at least 3 renewables, including TRIG and JLEN, and there is a short piece in the report about them. Noting that CGT trust is run as a cautious wealth preserver.

Hi Pref,

How does one apply to buy the current offer of TRIG shares (at or near 123p?) then? It's currently sitting at around 126p on the open market.

[PrefInvestor]

Hi Pref,

How does one apply to buy the current offer of TRIG shares (at or near 123p?) then? It's currently sitting at around 126p on the open market.

Hi richfool, Well I actually tried to do this, I rang my broker (Hargreaves Lansdown) and said I wanted to participate in the placing. They told me that to participate in a placing that I needed to be a "Qualified Investor" and that they had a questionnaire to attain that status. I asked them what the conditions were and the first two were:-
1. A portfolio size of 0.5 million euros minimum
2. Experience operating as a professional investor.

I got the message and didnt go on to Q3. You could giver it a try though, nothing stopping you. I think though that this and the FSFL issue ATM are only open to the institutions and people who will buy a very large block of shares.

Feel free to give it a try though, just ring your broker and see how you get on.

ATB

Pref

[richfool]

Hi richfool, Well I actually tried to do this, I rang my broker (Hargreaves Lansdown) and said I wanted to participate in the placing. They told me that to participate in a placing that I needed to be a "Qualified Investor" and that they had a questionnaire to attain that status. I asked them what the conditions were and the first two were:-
1. A portfolio size of 0.5 million euros minimum
2. Experience operating as a professional investor.

I got the message and didnt go on to Q3. You could giver it a try though, nothing stopping you. I think though that this and the FSFL issue ATM are only open to the institutions and people who will buy a very large block of shares.

Feel free to give it a try though, just ring your broker and see how you get on.

ATB

Pref

Hi Pref,

I emailed my Investment manager and received this reply:

The company are proposing to issue these shares via a placing. Placing offers are not available to retail clients via ourselves, you need to contact the company directly to apply.

I have therefore left it.

[PrefInvestor]

Hi richfool, Looking at the sharesmagazine site this morning that I use to monitor live prices it looks to me as though TRIG can be bought for 125p this morning. In case you are interested ?. More than 123 I know, but not sure you are going to get better.....?. But with markets as they are who knows ?.

ATB

Pref

[PrefInvestor]

Yes richfool. Just did a dummy trade and you could buy TRIG for 125.17.

Pref

[daveh]

I bought this morning at 125.378p. If I'd waited until tomorrow I could have bought using my brokers regular dealing facility for only £2.50 dealing fee, saving £10, but as the placing is today I wasn't sure the price wouldn't start climbing back towards 130p tomorrow. Could easily lose more than I gained in the cheaper fee if the price climbed at all much.

[BusyBumbleBee]

Announcement this morning by TRIG at 12.42

Further to the announcement of 27 September 2019, the Board of The Renewables Infrastructure Group Limited is pleased to announce that the Company has successfully completed the fundraising, raising gross proceeds of GBP227.6m.

The Issue was heavily oversubscribed. Accordingly, the Company has had to scale back applications materially. The Company will issue 185m New Ordinary Shares, being the balance remaining available under the Company's Share Issuance Programme which was put in place on 7 March 2019.

Which I make to be about 123 pence per share GROSS.

[PrefInvestor]

Hi BBB, Thanks for that, was too busy watching the market carnage to notice !. Anyway £227.6/189 = 1.23p a share more or less, so they got their asking price and were heavily oversubscribed again. Best I saw was 125.17, and I have enough of them really.....

ATB

Pref

[Walkeia]

Post TRIG raise I’m happy with my direct renewables exposure similar to Pref-Investor; so I’ve spent a few hours this weekend looking for the next funds i’ll be buying for the next 6 months or so. Could I ask if anyone has looked at, owns or has any views on GABI (Gravis asset backed) or GFC (Gravis infrastructure). Both have similar features to the Green infra trusts; however not RPI linked, ~50% senior loan notes so look arguably more diversified, a bit less risky and more like a fixed income asset.

I’m considering these two after been a very happy holder of SEQI; especially appreciating the volatility adjusted return. As background; I use margin to boost returns similar to buy to let - as these assets have low correlation to equity stress they provide diversification for my portfolio. Open to looking at other suggestions if people have a good idea.

Thanks for input as always.

[PrefInvestor]

Could I ask if anyone has looked at, owns or has any views on GABI (Gravis asset backed) or GFC (Gravis infrastructure). Both have similar features to the Green infra trusts; however not RPI linked, ~50% senior loan notes so look arguably more diversified, a bit less risky and more like a fixed income asset..

Hi Walkeia, I havent heard of either of those I confess but will take alook at these in slow time. I hold SEQI and quite a few other debt investments (NCYF, RECI, SWEF & SHRS) and a few preference shares (BWSA, GACB, RSAB, STAB & RAVP) so I quite like investments which are more fixed interest in nature. They are certainly far less volatile than equities !.

ATB

Pref

[richfool]

Hi richfool, Looking at the sharesmagazine site this morning that I use to monitor live prices it looks to me as though TRIG can be bought for 125p this morning. In case you are interested ?. More than 123 I know, but not sure you are going to get better.....?. But with markets as they are who knows ?.

ATB

Pref

I bought this morning at 125.378p. If I'd waited until tomorrow I could have bought using my brokers regular dealing facility for only £2.50 dealing fee, saving £10, but as the placing is today I wasn't sure the price wouldn't start climbing back towards 130p tomorrow. Could easily lose more than I gained in the cheaper fee if the price climbed at all much.

I did in fact pick up a few TRIG shares for my wife.

I wasn't sure how the offer and the discount would work in practice and thus what would happen to the SP on the 3rd October, but I self-rationalised that the premium should have reduced in the run up to the offer date. So I bought some late on the 2nd October, at £126.11. I still have my own much larger holding intact and untouched.

I note today the SP is up at 130p.

I have a larger holding of JLEN which I have held longer and which I prefer because it also holds batteries as well as solar and wind assets. It also has a slightly higher yield, but is at a higher premium.

[PrefInvestor]

Hi All, Well for some reason UKW rose to 146.6 today reducing the yield to about 4.6%, premium now 18.7%. I couldn’t resist selling half my holding at that price as there are numerous places that I can get a safe 6% so I figured I’d sell and take route.

None of the other Green ITs seem to be doing a whole lot though, not really sure why UKW is doing so well.

ATB

Pref

[PrefInvestor]

Hi All, Well UKW just continuing to plough ahead now 148.5ish and at a premium of over 20% !?. No reason for it that I can see, be interested if anyone knows why its happening.

If it gets to 150 I'm going to sell the rest of mine and use the cash to buy a cheaper one.

ATB

Pref

[richfool]

I just came across this Daily Mail "This is Money" article/podcast about green energy/renewables and in particular JLEN and how it works, which may be of interest:

How to profit from green energy, reducing waste and boosting recycling

https://www.dailymail.co.uk/money/inves ... waste.html

The dialogue tends to be slow and encourages one to nod-off!

[PrefInvestor]

Hi All, Well just sold the rest of my UKW today at 147.5. Cant see that they can go much higher (famous last words !). Now at ~20% premium and dividend yield down to ~4.5%. Planning to use the proceeds to top up on NESF when they go XD next Thursday, yield there ~5.7%, premium a slightly more reasonable 13%.

ATB

Pref

[richfool]

Hi All, Well just sold the rest of my UKW today at 147.5. Cant see that they can go much higher (famous last words !). Now at ~20% premium and dividend yield down to ~4.5%. Planning to use the proceeds to top up on NESF when they go XD next Thursday, yield there ~5.7%, premium a slightly more reasonable 13%.

ATB

Pref

Pref, Thanks for the update.

If you are essentially trading the premia, what about FSFL (Foresight Solar Energy) then? That is at a premium of 9.96% compared to NESF's 12.54% premium. FSFL is yielding 5.55% versus NESF's 5.47%.

OK noted that NESF goes ex dividend next thursday, whereas FSFL's next ex dividend is not until February.

I don't have any spare cash in my ISA, but I do in my share dealing account. Presumably if I bought any of these Jersey/Guernsey based trusts in my non-sheltered share dealing account, I would have the hassle of declaring them (as an offshore investment) for tax purposes?

[PrefInvestor]

Hi richfool, I already have a full allocation of FSFL as otherwise I might well have done that. But I’m low on NESF hence my plan.

Doing a bit of yield hopping here really, swapping a 4.5% yield for a 5.5% one, for an investment I think may have topped.

ATB

Pref

[sunnyjoe]

Octopus launches new renewables investment trust
https://www.cityam.com/octopus-launches ... ent-trust/

[UncleEbenezer]

Octopus launches new renewables investment trust
https://www.cityam.com/octopus-launches ... ent-trust/

Octopus previously had a pair of VCTs (Octopus 3 and 4) investing in renewables. They offered terrible returns, in a sector where other VCTs (Foresight Solar, Ventus, Hazel/Gresham House) performed much, much better.

[BusyBumbleBee]

Octopus launches new renewables investment trust
https://www.cityam.com/octopus-launches ... ent-trust/

Octopus previously had a pair of VCTs (Octopus 3 and 4) investing in renewables. They offered terrible returns, in a sector where other VCTs (Foresight Solar, Ventus, Hazel/Gresham House) performed much, much better.

Not quite sure where the tentacles of Octopus reach - Octopus Energy is highly rated by Which and supplies only renewable energy with some novel tariffs and they are cheaper than most. One wonders if all the output from the companies in the new investment trust will sell their electricity to Octopus Energy. See https://octopus.energy/about-us/ for more info. They do also have their own Solar Farms.