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Investing in Green Infrastructure Funds (ITs)

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
BusyBumbleBee
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Re: Investing in Green Infrastructure Funds (ITs)

#231032

Postby BusyBumbleBee » June 20th, 2019, 5:54 pm

Next Energy Solar (NESF) released good results yesterday https://uk.advfn.com/stock-market/londo ... s/80152555

KEY POINTS :

Constituent of FT-250 In April 2019 :
the Company's ordinary shares were included in the FTSE-250 Index. The Board is aware of the additional reporting and disclosure requirements that this involves.

NAV:
At the year end, the Company's ordinary NAV was GBP645m, equivalent to 110.9p per ordinary share (2018: NAV of GBP605m, 105.1p per ordinary share).

Dividend:
The Company continues to achieve all its dividend objectives. For the year 2018/19, the Company will have paid out a total dividend of 6.65p per ordinary share (2017/18: 6.42p).
For the year 2019/20, the UK RPI applicable to the value of ROCs is 3.3% (as published by the Office for National Statistics). We are therefore targeting to grow the total dividend to 6.87p per ordinary share.

Subsidy free investment :
We expect to continue taking advantage of the new-build opportunities we have secured in the subsidy-free solar sector in the UK. Having identified this opportunity early, we have been able to secure development opportunities at attractive valuations. This will facilitate the construction of new plants with satisfactory financial returns. We are targeting a total of between 100 and 150 MW in subsidy-free solar plants. We shall seek to achieve attractive risk-adjusted returns from these activities via corporate PPAs or direct-wire agreements with off-takers.

Extra info : would that all the Green Infrastructure funds did the same!
The Company sets out below its KPIs which it utilises to track its performance over time against its objectives. Alternative Performance Measures used by the Company are defined on page 102.

Code: Select all

                                                          Year ended  Year ended  Year ended  Year ended  Year ended
                                                             31 March    31 March    31 March    31 March    31 March
Financial KPI                                                    2019        2018        2017        2016        2015
Ordinary shares in issue                                       581.7m      575.7m      456.4m      278.0m      240.3m
Ordinary share price                                           117.5p      111.0p      110.5p      97.75p     103.75p
Market capitalisation of ordinary shares                      GBP683m     GBP639m     GBP504m     GBP272m     GBP249m
NAV per ordinary share*                                        110.9p      105.1p      104.9p       98.5p      103.3p
Total ordinary NAV*                                           GBP645m     GBP605m     GBP479m     GBP274m     GBP248m
Premium/(discount) to NAV*                                       6.0%        5.6%        5.3%      (0.8%)        0.4%
Earnings per ordinary share                                    12.37p       5.88p      13.81p       0.78p       9.13p
Dividend per ordinary share                                     6.65p       6.42p       6.31p       6.25p       5.25p
Dividend yield*                                                 5.66%       5.78%       5.71%       6.39%       5.06%
Cash dividend cover - pre-scrip dividends*                       1.3x        1.1x        1.1x        1.2x        1.8x
Preference shares in issue                                       100m           -           -           -           -
Debt outstanding at subsidiaries level                        GBP269m     GBP270m     GBP270m     GBP217m       GBP0m
Gearing level (debt + preference shares/GAV)*                     36%         31%         36%         44%          0%
GAV                                                         GBP1,014m     GBP875m     GBP749m     GBP489m     GBP248m
Weighted average cost of capital                                 5.4%        5.8%        5.9%        5.8%        7.5%
Weighted average lease life                                25.2 years  23.3 years  24.6 years  25.7 years  26.2 years
Ordinary shareholder total return - cumulative since IPO        46.7%       33.6%       26.7%        6.1%        5.9%
Ordinary shareholder total return - annualised since IPO         9.5%        8.5%        9.1%        3.2%        6.3%
Ordinary shareholder total return                               11.8%        6.2%       21.1%        0.2%        5.9%
FTSE All-Share total return                                      8.8%        1.4%       20.9%      (3.6%)        5.5%
Ordinary NAV total return*                                      11.8%        6.3%       14.4%        3.7%        3.3%
Ordinary NAV total return - annualised since IPO*                8.1%        7.0%        4.9%        1.9%        4.0%
Invested capital*                                             GBP896m     GBP734m     GBP522m     GBP481m     GBP252m
Ongoing charges ratio*                                           1.1%        1.1%        1.2%        1.2%        1.5%
Weighted average discount rate                                   7.0%        7.3%        7.9%        7.7%        7.5%
Operational KPI
Number of assets                                                   87          63          41          33          16
Total installed capacity                                       691 MW      569 MW      454 MW      414 MW      217 MW
Annual generation                                             693 GWh     451 GWh     394 GWh     225 GWh      23 GWh
% increase (year-on-year)                                         54%         14%         75%        878%           -
Generation since IPO                                          1.8 TWh     1.1 TWh     0.6 TWh     0.2 TWh     0.0 TWh
Irradiation (delta vs. budget)                                  +9.0%      (0.9%)      (0.3%)       +0.4%      (0.4%)
Generation (delta vs. budget)                                   +9.1%       +0.9%       +3.3%       +4.1%       +4.8%
Asset Management Alpha*                                         +0.1%       +1.8%       +3.6%       +3.7%       +5.2%



All in all, seems to be well managed and has some novel features which others do not have. For example Zero Dividend Preference shares
The preference shares form part of the Company's share capital but, for accounting purposes, they are treated as liabilities. Accordingly, for the purpose of the borrowing limit in the investment policy the Company has classified the preference shares as liabilities, and the investment management fee is calculated based on ordinary shareholders' NAV.


It will also be interesting to see how much money they can make from subsidy free installations.

This is the latest table of returns from the Green Funds (I have added GORE (GSF) the battery storage company as they seem to be entering the main stream.

Code: Select all

BSIF    129.00     130.50     7.68    5.95%   5.89%    113.44    15.04%
Jlen    118.00     119.00     6.66    5.64%   5.60%    104.70    13.66%
TRIG    127.00     127.40     6.64    5.23%   5.21%    111.60    14.16%
FSFL    118.50     119.00     6.76    5.70%   5.68%    110.00    8.18%
UKW    139.80     140.00     6.94    4.96%   4.96%    123.10    13.73%
NESF    120.50     121.00     6.87    5.70%   5.68%    110.90    9.11%
GSF     89.00     92.00     7.00    7.87%   7.61%    92.90    -0.97%


Gore is the highest yielder and is trading at (roughly) 'NAV par'. If it uses its first mover advantage to the full it could be an interesting investment. I have bought 12,000 to see how they do.

Of the others it seems that FSFL and NESF are the 'best buys' at the moment taking into account the yield and premium to NAV but also (in my view) the way they are run.

Hope this is useful - regards - BBB

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Re: Investing in Green Infrastructure Funds (ITs)

#231049

Postby TheMotorcycleBoy » June 20th, 2019, 7:11 pm

Thanks again BBB,

Some more useful ideas in your last post.

Matt

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Re: Investing in Green Infrastructure Funds (ITs)

#231077

Postby PrefInvestor » June 20th, 2019, 11:27 pm

BusyBumbleBee wrote: Gore is the highest yielder……?

Hi BBB, Took a look at GSF as a result of your post and confess I didn’t find it terribly attractive TBH. Share price performance has fallen since launch and has been lacklustre at best. Looking at their maiden full year results document dated 5th June 2019 that said that the dividend yield was 4.4% (HL dividend sheet also confirms that figure) which is a lot different to the 7.97% in your post, so I’m not sure why that is ?. Certainly not the best renewable energy trust in income terms if this info is correct.

I think battery storage is a great idea but isn’t ready yet. I looked at it in quite a bit of detail when I bought my solar panels in January as I was considering having battery storage as well. I quickly rejected that plan when it became clear that I could easily spend as much on the battery system as on the panels, that they would really only save me the cost of my night time electricity (which isn’t anywhere near as much as the daytime use) AND most critically the batteries could only be expected to last between 5 and 15 years after which time I would have to shell out for another one. Just not an economic proposition ATM IMHO. However I suspect that electric cars will move things forward quickly over the next few years and that situation will change.

As for government getting behind the project and stimulating change, I see little realistic prospect of that. I think that their removal of the subsidy for home solar PV is truly deplorable, virtually killing the industry sending lots of small companies into liquidation and removing the small financial incentive that people need to make the move. If everyone had solar on their roof then just think how many less power stations would be required. And why aren’t they providing greater incentives to get people to move to electric cars ?. In Norway they have removed VAT from electric cars I understand making them cheaper than petrol/diesel vehicles so people have a real incentive to switch. No government here remains completely useless in this area. Net zero emissions by 2050 !! some chance.

So no I won’t be investing in this new trust because of my doubts about the technology as it is today and because it clearly isn’t doing that great. Probably just as well as I already own all of the other renewable trusts in your list, which I am very happy with.

ATB

Pref

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Re: Investing in Green Infrastructure Funds (ITs)

#231089

Postby PrefInvestor » June 21st, 2019, 5:21 am

Hi Again BBB, Sorry I only read the maiden FY report highlights before making my post last night. I see that they are targeting a 7%+ yield for the year to 31/3/2020 which I guess is where you are getting your figure from, Though I also note that they recorded a loss of over £1M for the first year, so the 7p dividend target for the next year looks very optimistic to me at this time.

ATB

Pref

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Re: Investing in Green Infrastructure Funds (ITs)

#231160

Postby BusyBumbleBee » June 21st, 2019, 11:59 am

BusyBumbleBee wrote: Gore is the highest yielder……?
- sorry, PrefInvestor, should have said forward yield.
My comments on Gore also took into account my post viewtopic.php?p=227290#p227290 which sets out the case for another look at the company - and why I bought in at that time and am showing a 'profit' plus catching the last dividend.

I appreciate your apology in your next post - thank-you.

hopefully I have managed to embed my comments [thus] within in your reply - below
PrefInvestor wrote:Hi BBB, Took a look at GSF as a result of your post and confess I didn’t find it terribly attractive TBH. Share price performance has fallen since launch and has been lacklustre at best [My rule - developed from experienced is never to buy new issues of this kind - they always lose you money in the first year] Looking at their maiden full year results document dated 5th June 2019 that said that the dividend yield was 4.4% (HL dividend sheet also confirms that figure) which is a lot different to the 7.97% in your post, so I’m not sure why that is ?. Certainly not the best renewable energy trust in income terms if this info is correct.

I think battery storage is a great idea but isn’t ready yet. [true but look at the technology of REDT] I looked at it in quite a bit of detail when I bought my solar panels in January as I was considering having battery storage as well. I quickly rejected that plan when it became clear that I could easily spend as much on the battery system as on the panels [true] , that they would really only save me the cost of my night time electricity (which isn’t anywhere near as much as the daytime use) AND most critically the batteries could only be expected to last between 5 and 15 years after which time I would have to shell out for another one. Just not an economic proposition ATM IMHO. However I suspect that electric cars will move things forward quickly over the next few years and that situation will change. [electric cars are a disaster waiting to happen - I have one and know just how expensive they are to run]

As for government getting behind the project and stimulating change, I see little realistic prospect of that. I think that their removal of the subsidy for home solar PV is truly deplorable, [as a pump primer FIT did its job but it was hellishly expensive ] virtually killing the industry sending lots of small companies into liquidation and removing the small financial incentive that people need to make the move. If everyone had solar on their roof then just think how many less power stations would be required [simply not true as power will still be needed when the sun don't shine - that's why battery capacity is so important for 'time shifting'] . And why aren’t they providing greater incentives to get people to move to electric cars ?. In Norway they have removed VAT from electric cars I understand making them cheaper than petrol/diesel vehicles so people have a real incentive to switch. No government here remains completely useless in this area. Net zero emissions by 2050 !! some chance. [serious risk of going off topic here but I will just point out that electric vehicles still use energy MORE in fact than diesel cars as fossil fuel generators only give you 50% of the energy they use as electricity. All they do is transfer the pollution from the city to the countryside ]

So no I won’t be investing in this new trust because of my doubts about the technology as it is today and because it clearly isn’t doing that great. Probably just as well as I already own all of the other renewable trusts in your list, which I am very happy with


I too am happy with my investment in the Green Infrastructure funds - BUT I am very conscious that I am helping to pay the subsidies out of another of my pockets. I ask myself the question why big banks are happy to lend at very low rates to these funds rather than invest in the actual assets. I don't invest in these because they are green but because they give a good return and a likely increasing return for a very long time.

Gore is at the stage of the first solar and first wind power funds and getting in early - not too early is in my view a good bet. The big solar parks and wind farms were built by others and sold on to the Green Funds so the money could be recycled into new assets. The new battery assets are also being built by others and sold on to GORE - and probably others in the near future. The Grid has to balance its inputs and simply has to find ways of time shifting,

If we want to discuss thus further I think we should ask the moderators to put up a special board for "Green Issues" - some such did exist on the old Motley Fool

with kind regards - BBB

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Re: Investing in Green Infrastructure Funds (ITs)

#231169

Postby dspp » June 21st, 2019, 12:11 pm

BusyBumbleBee wrote:

If we want to discuss thus further I think we should ask the moderators to put up a special board for "Green Issues" - some such did exist on the old Motley Fool

with kind regards - BBB


There is a perfectly good board available for ALL energy topics to be discussed in the round, just try using it
viewforum.php?f=16

However staying here to talk about 'green' as a strategy is also fine if that is what you want.

By the way the comment about EVs using more energy than ICE is in almost all circumstances wrong at present, and becoming more wrong with each passing year.

regards, dspp

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Re: Investing in Green Infrastructure Funds (ITs)

#231178

Postby BusyBumbleBee » June 21st, 2019, 12:46 pm

dspp wrote:
BusyBumbleBee wrote: If we want to discuss thus further I think we should ask the moderators to put up a special board for "Green Issues" - some such did exist on the old Motley Fool ... with kind regards - BBB

There is a perfectly good board available for ALL energy topics to be discussed in the round, just try using it
viewforum.php?f=16

However staying here to talk about 'green' as a strategy is also fine if that is what you want.

By the way the comment about EVs using more energy than ICE is in almost all circumstances wrong at present, and becoming more wrong with each passing year. regards, dspp


Thanks,dspp

Just on this
By the way the comment about EVs using more energy than ICE is in almost all circumstances wrong at present, and becoming more wrong with each passing year.


Agreed for the vehicle. BUT it's the total energy used to drive the car that I was talking about : my information indicates that only 50% of the energy used by a power station goes into the electricity - the rest being wasted unless it is used for district heating or similar. And by the way I love my Volvo plug in hybrid (and I have to have a plug in hybrid cos charging points in Norfolk are about as rare as hen's teeth) even though it is a fantastically expensive car to buy and run, And prefer it over the Tesla.

I would love :D to be proved wrong so please go for it.

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Re: Investing in Green Infrastructure Funds (ITs)

#231217

Postby dspp » June 21st, 2019, 2:21 pm

Power your car off renewables. Simples. 100% not fossil etc. Forget about the concept of efficiency, it is a distraction in this context.

To do this you can either :

1. sign up to a 'green' tariff to guarantuee you buy 100% green electricity off th grid; or
2. generate your own and control it yourself; or
3. wait for the grid to progressively decarbonise. Most of the scamposts on this subject pick grids that are coal-biased to 'prove' the bad news point. The good news is that the overall trend is in the other direction. UK grid will be approx 50% non-fossil in 2019 - see https://www.bloomberg.com/news/articles ... first-time

- dspp

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Re: Investing in Green Infrastructure Funds (ITs)

#231219

Postby PrefInvestor » June 21st, 2019, 2:34 pm

BusyBumbleBee wrote: …hopefully I have managed to embed my comments [thus] within in your reply….


Hi Again BBB, Well some interesting discussion points there, see my comments below:-

1. Again sorry I didn’t fully read the annual report before making my first post last night, please accept my apologies.
2. Regarding FIT I accept that they needed to reduce the subsidy, but removing it completely was a big mistake IMV. Now no-one has any incentive to install solar, unless they are crazy green and don’t care what it costs them. And as things are anyone not already on FIT can’t be get paid for anything they export - how crazy / unfair is that ?.
3. Re your point about still needing power when the sun doesn’t shine, OK yes that’s true but unless we are having a solar eclipse or Its night time then typically quite a lot of the UK will be getting some sun somewhere. If most houses had solar then grid requirements would surely be greatly reduced.
4. I completely accept that the grid has to do storage and load balancing, and coming up with an effective storage solution is important. Just not sure the current tech is up to the job especially for home use.
5. Why is your plugin hybrid so expensive to power then ?. If I had an EV then I’d get a charging point put in the garage and charge it from excess solar I produce during the day. I was under the impression that a full charge cost was sort of £10-15 for about 100 mile range ie so about 10-15p a mile or about half as much as an ICE vehicle (all costs included). Is that all wrong then ?.
6. Again you will have to excuse me but I am still pretty new to the Lemon Fool and I am just not familiar with the concept of what things can be discussed where and why. On ii (where I started out) you can discuss anything anywhere and I frequently do. Especially in situations such as this where discussing one issue leads you logically on to discussing related issues. No one does any moderation over on ii to my knowledge (probably a big failing) but therefore I am not much used to their interventions either TBH !.

ATB

Pref

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Re: Investing in Green Infrastructure Funds (ITs)

#231240

Postby dspp » June 21st, 2019, 3:44 pm

PrefInvestor wrote:
BusyBumbleBee wrote: …hopefully I have managed to embed my comments [thus] within in your reply….


Hi Again BBB, ..
6. Again you will have to excuse me but I am still pretty new to the Lemon Fool and I am just not familiar with the concept of what things can be discussed where and why. On ii (where I started out) you can discuss anything anywhere and I frequently do. Especially in situations such as this where discussing one issue leads you logically on to discussing related issues. No one does any moderation over on ii to my knowledge (probably a big failing) but therefore I am not much used to their interventions either TBH !.

ATB

Pref


Pref,
There is a general structure to the boards, and we try to keep posts and threads in roughly the right place to help people. Some things can logically go in more than one place, and there are a few things that MUST go only in one place, but otherwise we are fairly relaxed. That is why this thread did not get lifted and shifted into the Energy board, though I am happy to do so if you want me to do that.
regards,
dspp

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Re: Investing in Green Infrastructure Funds (ITs)

#231277

Postby BusyBumbleBee » June 21st, 2019, 6:46 pm

dspp wrote:There is a general structure to the boards, and we try to keep posts and threads in roughly the right place to help people. Some things can logically go in more than one place, and there are a few things that MUST go only in one place, but otherwise we are fairly relaxed. That is why this thread did not get lifted and shifted into the Energy board, though I am happy to do so if you want me to do that. regards, dspp

Hi again, dspp. You have pointed me to the energy thread before but this topic is on investment in what are second hand Green Infrastructure Installations. There is precious little new investment made by these funds - although NESF did say thy were going to build 'subsidy free' solar farms. So it belongs firmly and squarely here as an investment strategy. Please don't move it.

Some people who invest in these funds get a good feeling that they are helping the planet - I wonder?

You also said
Power your car off renewables. Simples. 100% not fossil etc. [All renewable energy is sold and It's all the same colour when it comes out of the pipe anyway so why pay more for it? ] Forget about the concept of efficiency, it is a distraction in this context [But I cannot forget about efficiency because its the obverse of generation - greater efficiency means less needs to be generated which is why heat pumps are so good because they save you two thirds of your energy for space and water heating purposes - and mine save many times what I could generate from solar panels over the year and cost me much less to install - capital cost pay back in two years without subsidy] .

To do this you can either :

1. sign up to a 'green' tariff to guarantee you buy 100% green electricity off the grid; [How can I tell the difference when I get it?] .or
2. generate your own and control it yourself [Couldn't (wasn't allowed to) install my own wind turbine because I had spent 30 years encouraging bats on my small farm! and my roof is old pan tile and could not take solar panels ] .; or
3. wait for the grid to progressively decarbonise. [by 2050 I expect to be 6 feet under ] . Most of the scamposts on this subject pick grids that are coal-biased to 'prove' the bad news point. The good news [Agreed] . is that the overall trend is in the other direction. UK grid will be approx 50% non-fossil in 2019 [BUT the sun don't shine at night and there can be long periods without wind - and the winter is when you need most energy for water and space heating so you need to have back up ] .- see https://www.bloomberg.com/news/articles ... first-time - dspp


I agree with the direction of travel you are taking and indeed work across the three tiers of local government to try and make sure that every part of Norfolk from the smallest hamlet to the largest town do their bit. We are about to launch a major initiative on this so watch this space. with kind regards - BBB

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Re: Investing in Green Infrastructure Funds (ITs)

#231286

Postby BusyBumbleBee » June 21st, 2019, 7:29 pm

PrefInvestor wrote:1. Again sorry I didn’t fully read the annual report before making my first post last night, please accept my apologies. ATB Pref

Absolutely no need to apologise - we all sometimes shoot first (well I do anyway :) ) - and anyway you already did once! and I accepted it - so...

You ask
5. Why is your plugin hybrid so expensive to power then ?. If I had an EV then I’d get a charging point put in the garage and charge it from excess solar I produce during the day. I was under the impression that a full charge cost was sort of £10-15 for about 100 mile range ie so about 10-15p a mile or about half as much as an ICE vehicle (all costs included). Is that all wrong then ?.


It's not that its expensive to power but the other costs associated with that car are immense - I used the phrase
even though it is a fantastically expensive car to buy and run

Initial cost was 10K higher than the straightforward diesel version
Servicing £300 - £500 per time
Insurance : same bracket as a Ferrari
Tyres - less than 15000 miles cos it switches from front wheel drive to rear wheel drive to manage the twin engines
Repairs - horrendous : £2K for a repair to the air conditioning which left parts of the engine compartment with 400 volts running through it - a sort of "touch it and you're dead" fault by the way but luckily no self respecting owner would even try to touch those parts.

The power costs are not high at all.

Running only on diesel and driven sensibly (no harsh acceleration and keeping within the speed limits) gives you 50 plus mpg on long journeys (about 12 to 13 pence per mile) - which ain't at all bad for a 2 tonne car.

On electricity (max distance 30 miles under ideal conditions) and if driven extremely carefully in Goldilocks (no aircon no heating) weather, it will use one third of a KWh per mile on the level (luckily Norfolk is flattish). My average cost of a KWh is just about 10 pence so about 3.33 pence per mile for electricity. Driven badly, of course, it's a different story. I try to use the electricity at low urban or country road speeds and the diesel on the open road.

I love the car and I can either be a speed maniac (top speed 150 plus mph and 0 to 60 in something ridiculous with both engines running) or an eco warrior - listening to the cricket.

The Volvo has a lot of measuring apps built in and you can see what you are using by the second or by the minute or ... very sobering to see the mpg drop to about 3 as you put your foot down drawing away from a roundabout.

I have enjoyed the diversion of this discussion - with kind regards - BBB

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Re: Investing in Green Infrastructure Funds (ITs)

#231346

Postby dspp » June 22nd, 2019, 7:08 am

1. No problem leaving it here.

2. The energy board is also about investment matters. Most contributors there appreciate that engineering and economic realities drive many investment opportunities in this sector. Other opportunities in this sector arise from legislation......

3. This thread appears to be going in the same direction, albeit with misunderstandings.

4. You are not describing a Bev. You are describing a hybrid that is a crippled compliance vehicle as an eV. But that's not a good thing to help in determining investment decisions in energy infrastructure.

Regards, dspp

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Re: Investing in Green Infrastructure Funds (ITs)

#231391

Postby supremetwo » June 22nd, 2019, 12:35 pm

Article yesterday:

https://www.ii.co.uk/analysis-commentar ... s-ii508505

We look at the popular infrastructure sector, and review the latest additions to two burgeoning fields.

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Re: Investing in Green Infrastructure Funds (ITs)

#231771

Postby PrefInvestor » June 24th, 2019, 4:48 pm

Hi All, I see that there is an OEIC with holdings in many of the renewable energy trusts mentioned in this thread (JLEN, NESF, TRIG, UKW & FSFL) for those who like that form of investment, see link below:-

https://www.hl.co.uk/funds/fund-discoun ... cumulation

I dont generally do OEICs given the charges levied by my broker on this class of investment but I know that others do. There may well be other OEICs too I guess but I was interested to see one with holdings in most of the trusts of interest in this topic.

ATB

Pref

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Re: Investing in Green Infrastructure Funds (ITs)

#231786

Postby BusyBumbleBee » June 24th, 2019, 5:27 pm

Well, PrefInvestor, the fund is VT GRAVIS CLEAN ENERGY INCOME and the annual historic yield is 3.79% (ouch). However, it has made 20.13% in the past 12 months. But I guess the 6 UK green infrastructure funds have done about the same.

Some of the figures don't add up by the way

John Laing Environmental Assets Group 6.02%
NextEnergy Solar Fund 5.70%
Renewables Infrastructure Group 4.63%
Greencoat UK Wind 4.30%
Foresight Solar Fund 4.11%

= 24.76% whereas it says only 15.45% is in the UK and that 25.76 % has a yield of more than 5%

I hate OEICs

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Re: Investing in Green Infrastructure Funds (ITs)

#231805

Postby PrefInvestor » June 24th, 2019, 6:28 pm

BusyBumbleBee wrote:Well, PrefInvestor, the fund is VT GRAVIS CLEAN ENERGY INCOME and the annual historic yield is 3.79% (ouch). However, it has made 20.13% in the past 12 months. But I guess the 6 UK green infrastructure funds have done about the same.

Some of the figures don't add up by the way

John Laing Environmental Assets Group 6.02%
NextEnergy Solar Fund 5.70%
Renewables Infrastructure Group 4.63%
Greencoat UK Wind 4.30%
Foresight Solar Fund 4.11%

= 24.76% whereas it says only 15.45% is in the UK and that 25.76 % has a yield of more than 5%

I hate OEICs


Well I agree that the yield isn’t great but the growth has been pretty good and I was struck by it having holdings in all of the names that we have discussed here. I hate OEICs also, had a bad experience with them during the 2008 financial crisis and swore I would never put a penny in one again. Time was they were just a mass of opaque charges. I don’t think that they are so bad now - but I am scarred by my past experience. I confess that I have contemplated investing in lindsell train global equity and fundsmith of late - but haven’t actually done so. My investing style is to invest for dividends and to reinvest those and aim to benefit through the 8th wonder of the world (compound interest). OEICs offer limited income opportunities but arguably automatic dividend reinvestment and no upfront entry fee. But I am still resistant to taking that route, especially given my brokers 0.45%pa charge just for holding them.

Anyone considering this OEIC needs to do their own due diligence, I am not intending to recommend it in any way, I prefer the ITs anyday myself !.

ATB

Pref

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Re: Investing in Green Infrastructure Funds (ITs)

#239926

Postby BusyBumbleBee » July 28th, 2019, 2:12 pm

At the end of January I set up a dummy portfolio on ADVFN to track the movements of the 6 companies below - time I gave you an update which is below.

Code: Select all

 Holding     Quantity     Total Cost     Avg.Price     Price     Basis     Cur Value     Profit/Loss     %     Daily Perf
 
   BSIF 10000    £ 12,811.00    £ 1.2811    £ 1.3250    BID    £ 13,250.00    £ 439.00    3.43%    £ 0.00
   FSFL 10000    £ 11,411.00    £ 1.1411    £ 1.1950    BID    £ 11,950.00    £ 539.00    4.72%    £ -150.00
   JLEN 10000    £ 10,961.00    £ 1.0961    £ 1.1800    BID    £ 11,800.00    £ 839.00    7.65%    £ -50.00
   NESF 10000    £ 11,561.00    £ 1.1561    £ 1.1900    BID    £ 11,900.00    £ 339.00    2.93%    £ -150.00
   TRIG 10000    £ 11,731.00    £ 1.1731    £ 1.2680    BID    £ 12,680.00    £ 949.00    8.09%    £ -20.00
   UKW 10000    £ 13,531.00    £ 1.3531    £ 1.3880    BID    £ 13,880.00    £ 349.00    2.58%    £ -80.00

 Total            £ 72,006.00                £ 75,460.00    £ 3,454.00    4.80%    £ -450.00


As well as paying dividends the six have increased in capital value by 4.8% over the period - actually a week or so ago it was 6% plus

Annoyingly I thought they were toppy round about then and sold all mine but have bought GRE since - at a good price.

Moving forward - could be that some folks will realise that Solar assets have had to cope with a rather cloudy June/July - usually the peak production time

regards - BBB

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Re: Investing in Green Infrastructure Funds (ITs)

#240191

Postby PrefInvestor » July 29th, 2019, 3:03 pm

BusyBumbleBee wrote:Annoyingly I thought they were toppy round about then and sold all mine but have bought GRE since - at a good price.


Hi BBB, well that's the problem with trading in and out isnt it, you win some your lose some. Re solar irradiation levels I thought I read somewhere that Q2 irradiation levels were actually up I cant remember where that was though. Been REALLY sunny here in Berkshire, but its wherever the solar farms are that matters of course. I did read in the UKW results the other day that wind levels had been significantly lower than expected, which had affected their revenue - but dividends were still covered 1.7 times.

Mega day on the FTSE today up ~2% as I write this. Non event for renewables though......and NRR down after a good week last week :( .

ATB

Pref

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Re: Investing in Green Infrastructure Funds (ITs)

#240407

Postby BusyBumbleBee » July 30th, 2019, 10:47 am

PrefInvestor wrote:Mega day on the FTSE today up ~2% as I write this. Non event for renewables though......and NRR down after a good week last week :( . ATB Pref

Could be that the FT-100 was up because £ was well down. FT-250 with most of the big ITs (including REITs) in it, didn't do so well - kind regards - BBB


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