The Lemon Fool

PrefInvestor wrote:
Good luck to those of you who are hanging on to your renewable energy investments.

Pref

Don't worry about me PI; to put it in context, JLEN is my 2nd smallest holding at 2.5% of the portfolio (with HICL the smallest at 2%). They are small diversifiers, mostly for my own interest sake tbh, within a predominantly equity based portfolio.

I too am somewhat sceptical about the article. It could be that someone wants to stock up on renewables and having discovered the high premia, sought to reduce the asking price. That said, the premiums were getting rather high and pruning them back a bit maybe no bad thing.

I am also scepitcal about electricity price cuts. They never seem to really materialise. I understood the income these trusts earn to be reliable and index linked.

My holdings of JLEN and TRIG were bought some time back, when premiums were lower. I bought NESF more recently and that is the only one I am in negative territory with. Therefore, as things stand I propose to hold all three. The income at over 5% is not to be sneered at. If I was to reduce, I would probably sell NESF.

I wonder if Peter Spiller of Capital Gearing Trust has reduced any of his holdings of renewables, (noting his trust has a strong emphasis on wealth preservation).

Are they not just following where regular Infrastructure ITs led? An inevitable correction after rising to excessive premia?

They're a long, long way from oversupply! That's something I was much more concerned about in, for example, coffee shops, when I held a stake in Costa (through WTB).

as discussed here; reduced the bulk of my renewables late last year. I exited the last of my JLEN today - been a good run / disappointing to sell the last clip here.

I agree with the worry that the renewables funds’ success at generating clean power, and the consequent drop in long term power prices, can potentially cannibalise the NAV of post subsidy regime assets.

From just this perspective it would seem a contradiction that they would remain at significant premiums given the regular share issues to expand funds under management. However, I accept in a zero interest rate environment a 5%+ yield for 10 years plus is attractive and some lowering of the discount factor can be argued for.

Don’t have a strong view which side of that discussion wins - so I walk on.

All the best

I used this little hiccup as an opportunity to top up on TRIG which is the most internationally diversified of those discussed here

Did anyone see the pulled IPO of Cabot Square Alternatives (ALTS)? Looked interesting (mostly renewables, with some housing and management) but IPO cancelled to allow institutional investors more time to assess.

(I can't post a link but a search on RNS should work).

One of my crowdfunding flutters, Pod Point, just got bought out. EDF buying itself a network of electric car charging points, and a major supplier to households.

The rise of electric cars, supplemented by downward pressure on gas for heating water, leaves huge scope for much more growth in this sector!

sunnyjoe wrote:I used this little hiccup as an opportunity to top up on TRIG which is the most internationally diversified of those discussed here

Some thoughts on renewables and TRIG in particular, from Kevin Godbold at Motley Fool:

https://uk.finance.yahoo.com/news/recko ... 39699.html

richfool wrote:

sunnyjoe wrote:I used this little hiccup as an opportunity to top up on TRIG which is the most internationally diversified of those discussed here

Some thoughts on renewables and TRIG in particular, from Kevin Godbold at Motley Fool:

https://uk.finance.yahoo.com/news/recko ... 39699.html

Thanks. Although, given the poor quality of Fool articles, I'm not sure that having my confirmation bias stroked in his way is healthy.

If it's a motley fool article, why not a link to motley fool, rather than make-you-jump-through-lots-of-hoops yahoo?

UncleEbenezer wrote:If it's a motley fool article, why not a link to motley fool, rather than make-you-jump-through-lots-of-hoops yahoo?

Simply, because that's how I came across the article through Yahoo. I don't often look at Motley Fool, but I do have Yahoo finance open to view share prices and related news and that is where I saw it. There's no "jumping through lots of hoops" involved, as the link take you straight to it, or at least there wasn't for me.

richfool wrote:

UncleEbenezer wrote:If it's a motley fool article, why not a link to motley fool, rather than make-you-jump-through-lots-of-hoops yahoo?

Simply, because that's how I came across the article through Yahoo. I don't often look at Motley Fool, but I do have Yahoo finance open to view share prices and related news and that is where I saw it. There's no "jumping through lots of hoops" involved, as the link take you straight to it, or at least there wasn't for me.

It redirected me to a "consent" page.

I ticked "yes", and it took me through a couple of redirections straight back to the "consent" page. And again.

Guess I should have said loops, not hoops. Maybe I might've broken free by disabling my browser security, but what had already happened disinclined me to spend time&effort on it.

UncleEbenezer wrote:

richfool wrote:

UncleEbenezer wrote:If it's a motley fool article, why not a link to motley fool, rather than make-you-jump-through-lots-of-hoops yahoo?

Simply, because that's how I came across the article through Yahoo. I don't often look at Motley Fool, but I do have Yahoo finance open to view share prices and related news and that is where I saw it. There's no "jumping through lots of hoops" involved, as the link take you straight to it, or at least there wasn't for me.

It redirected me to a "consent" page.

I ticked "yes", and it took me through a couple of redirections straight back to the "consent" page. And again.

Guess I should have said loops, not hoops. Maybe I might've broken free by disabling my browser security, but what had already happened disinclined me to spend time&effort on it.

Ah, OK, thanks for pointing that out. Sorry, I hadn't realised that. (Perhaps I got there directly because I am registered with yahoo finance, which I keep open all the time in a separate tab). If I come across any more like that, I will seek out and post (from) the original source.

TRIG related news that I missed back in December
https://citywire.co.uk/investment-trust ... s/a1306732

Sun Life Financial of Canada is buying a majority stake in InfraRed Capital Partners, triggering a £300 million windfall to the 23 partners in the rapidly growing real estate and infrastructure group.

These include Harry Seekings (pictured) and Richard Crawford, fund managers of the £3.2 billion HICL Infrastructure (HICL) and £2.2 billion Renewables Infrastructure Group (TRIG).

The Canadian financial services group is paying US$390 million for 80% of InfraRed, whose mission statement is ‘real assets, real value’, with options to buy the rest after four and five years.

JLEN share placing news
https://renews.biz/58842/jlen-raises-66 ... e-placing/

Greencoat UK Wind results news
https://renews.biz/58841/greencoat-uk-wind-hits-149m/

Aquila European Renewables Income Fund share placing news
https://renews.biz/59000/aquila-share-i ... ng-demand/

Any views on the prospects for wind and solar energy investments like JLEN & TRIG, in the light of the slump in oil prices and the C19 crisis?

In the short term, probably not so good. Low oil price = lower energy costs.

In the long term, it's where we're supposed to be headed. Picking individual companies at the start of a new industrial phase is going to be tricky. I'll hazard a guess that the likes of Shell and BP will be picking up green energy firms if they look promising.

thirty06 wrote:In the short term, probably not so good. Low oil price = lower energy costs.

In the long term, it's where we're supposed to be headed. Picking individual companies at the start of a new industrial phase is going to be tricky. I'll hazard a guess that the likes of Shell and BP will be picking up green energy firms if they look promising.

Plausible, but perhaps behind the curve?

Bigcos in the market are surely led by the utilities sector. Hence the likes of SSE (a history of windfarms) or EDF (very recent investment in charging electric vehicles).