Investors are increasingly unsure about what to do with their money, at least according to those we speak to. The reflationary rally seems to be over, and since the summer the market has gyrated between value and growth, pandemic optimism and pessimism, clean energy and fossil fuels, et cetera, et cetera… While the general consensus is now that inflation will remain high for a considerable period of time, it is unclear yet whether this is a bullish or bearish scenario. Unfortunately, an investm
Companies: CTY NESF ATST OCI BPET UKW
Policymakers have arguably kept their heads in the sand over the threat from global warming, but 2021 seemingly marked a watershed moment. Looking for ways to stimulate economies in the wake of the COVID-19 pandemic, policymakers have responded with the promise of an unprecedented influx of fiscal stimulus, one of the focuses of which is the sustainability of the infrastructure of developed economies. One of the largest investment opportunities appears to be in renewable energy, both via the con
Companies: JGC USF HNE IEM BERI UKW
Greencoat UK Wind (UKW) was the first renewable energy infrastructure trust to launch, and its subsequent growth has led to significant benefits for investors. The tiered fee structure and economies of scale have led to the OCF reducing significantly over time. At the same time, the trust can now consider much larger sized investments, which in themselves offer economies of scale and therefore potentially higher returns than might otherwise be the case. Finally, its scale enables a dedicated man
Companies: Greencoat UK Wind
The coronavirus pandemic has had a dreadful impact on equity dividends, particularly in the UK market. Between 31 March 2020 and 31 March 2021, UK companies cut their dividends by 41.6% on an underlying basis, according to the latest Link Dividend Monitor. The cuts have continued into 2021, with a 26.7% fall on an underlying basis in Q1. That said, there was a headline increase of 7.9% thanks to the second-highest special dividends reported, thanks to large payouts from Tesco and the rallying mi
Companies: USF HICL TRIG NESF MGCI NBMI UKW
In this publication, Hardman & Co’s focus is on the 17 quoted Renewable Energy Infrastructure Funds (REIFs), as we update our publication of February 2020 – the stocks analysed are members of the Association of Investment Companies (AIC). As a group, their combined market capitalisation is now ca.£10.6bn. The most valuable quoted funds are Greencoat UK Wind (£2.5bn) and TRIG (£2.4bn). Comparisons with the seven Infrastructure Investment Companies – a sector worth ca.£12.8bn – are also undertaken
Companies: AERI BSIF DORE RNEW FSFL GSF GRP UKW AMG1L JLEN NESF ORIT SEIT TRIG TEEC USF
Greencoat UK Wind (UKW)’s managers continue to build a formidable portfolio of wind farms in the UK. Whilst the market for wind farms in the UK is currently competitive, the team have been able to raise and deploy significant amounts of capital during the last financial year – all at rates of return that we think should enable the trust to meet its total return objective of 8-9% net of fees. Increased size brings efficiencies in many ways. As we discuss in Charges, the OCF is now sub 1% per annu
In December we highlighted that ESG was the surprise ‘thematic winner’ of 2020. Perhaps not in performance terms (can anything beat the FAANGs?), but almost overnight it has become a standard part of fund presentations. Asset flows into ESG funds also back up our contention, with huge growth in assets seen by ESG-related funds during 2020. However, as we discussed in December, within the equity trust universe there are relatively few equity trusts that offer ‘pure’ exposure to the theme. And of
Companies: UKW IHR NESF USF TRIG
Kepler’s investment trust ratings seek to identify the top-performing closed-ended funds in the growth, income & growth and alternative income categories. Previously presented only on our retail site, today we can unveil for both professional and retail readers the winners of the ratings for 2021. Our ratings are designed to capture attractive and persistent performance characteristics and to reward long-term success. Like all quantitative systems they are backward-looking, but we have attempted
Companies: UKW HICL TRIG SWEF BRGE THRG BRWM
Greencoat UK Wind (UKW) has seen continued acquisitions and capital raises throughout 2020, despite the pandemic. The trust remains the largest listed renewable energy infrastructure fund, with gross assets of £3.3bn once the latest acqusition completes. It provides a pure investment exposure to UK wind farms, with the twin aims of delivering a high, RPI-linked income return for shareholders whilst maintaining capital value in real terms. UKW is achieving its managers’ ambitions in becoming ‘uti
ESG investing, Environmental, Social, and Governance respectively, is much in vogue and has ended up weaving its way into almost every manager’s investment thesis, though with varying degrees of genuine integration. In this article we shine light on where ESG originated from, how Kepler Trust Intelligence goes about analysing ESG, and examples of trusts which demonstrate both good ESG credentials but also the nuances of assessing ESG.
Companies: NESF BERI UKW TRIG IEM HNE MWY JGC
Secular stagnation refers to the economic theory that growth will be persistently low for some time to come, due to an imbalance between savings and investment. If capital is saved rather than invested productive capacity lies idle, while the drag on consumption reduces demand in the economy. As a result GDP growth is reduced. As we have previously discussed, there is no historical evidence that GDP growth has a direct impact on stock market growth – in contradiction of the theorised linkage via
Companies: USF HICL NESF TRIG UKW NBMI
Research Tree provides access to ongoing research coverage, media content and regulatory news on Greencoat UK Wind.
We currently have 247 research reports from 6
We update our forecasts to take account of (1) Group 2020/2021 Annual Report & Accounts released in September (2) 1Q IMS released in October (3) End October 2021 FUM update in early November. Key points include:
Group Funds Under Management “FuM” remain circa US$11 bn; in October there was a small uptick which may indicate small net inflows.
Strong investment performance across CLIG’s investment strategies (Exhibit 3 shows performance over 5 years relative to peers and benchmarks).
Companies: City of London Investment Group PLC
Mercia has provided a positive update on a number of fronts. H1 adj. operating profit is running materially ahead of market expectations. Another performance fee has been crystallised in the NVM VCTs (£1.6m net). Valuation gains in H1 were better than expected driving >£10m H1 comprehensive net income. We incorporate this into our model, driving a +72% upgrade to FY22e adj. EBITDA (+23% u/l to £3.7m excl. performance fees) and a +4% increase to our NAV. We reiterate our 50p/sh SOTP valuation dri
Companies: Mercia Asset Management PLC
Deltic Energy has announced the completion with its joint-venture partner, Cairn Energy (CNE.L), of a 3-D seismic survey of approximately 680 km² over P2428. The licence is located in the heart of the SE-NW trending Carboniferous sandstone and Zechstein carbonate fairway towards the northern margin of the SNS (Southern North Sea) gas basin. The survey was focused on the Plymouth Zechstein reef prospect which is held 60% by Cairn and 40% by Deltic. Significantly, Deltic sees Plymouth as an analog
Companies: Deltic Energy PLC
MJ Hudson (MJH) has delivered a solid set of FY21A results, with organic revenue growth of +14% YoY (FY20A 4%) and Adj EBITDA of £5.6m (broadly in line with our £5.7m forecast). Pro forma EBITDA for the group at June-21A stood at £6.8m (and is c£7.0m once SCFL, acquired post period end, is included). We note that our FY21E Adj EBITDA forecast is currently £7.1m, and hence factors in only minimal organic growth, despite the fact that positive momentum from H2/FY21A has continued into the current
Companies: MJ Hudson Group Plc
Gore Street Energy Storage Fund (GSF) has announced that Kilmannock, one of the Company’s ROI
assets in construction, has secured an additional grid connection volume allocation of 90MW (in
addition to the 30MW). The initial 30MW benefits from a six-year fixed price contract, while the
remaining capacity can primarily derive revenues from extra capacity which could be used forwholesale
trading or the volume uncapped DS3 market (Delivering a Secure Sustainable Electricity System). GSF
Companies: Gore Street Energy Storage Fund PLC
Companies: Chrysalis Investments Limited
Revolution Beauty has released H1 results, confirming trading remains in line with full year expectations, despite well flagged input cost pressures. Today’s announcement unveils the roll out of a major new US retail partnership from Q4, as well as the launch of several new product categories, underpinning growth expectations into FY23 and beyond.
Companies: Revolution Beauty Group plc
Companies: Brewin Dolphin Holdings PLC
Gore Street’s confirmation of a 90MW capacity increase at Kilmannock is a clear positive in our view and takes the fund’s portfolio to over 600MW of projects either operating or under construction. These are split between the GB market and the all-Ireland market with the fund now owning the largest portfolio of storage assets in Ireland. In the GB market price volatility continues to be strong and we expect the fund’s assets to be benefiting from this.
Mercia reported a strong rise in the NAV of its Northern Venture Trust (NVT) subsidiary, reflecting the IPO of musicMagpie and other successful exits, leading to Mercia receiving a net performance fee of £1.6m. As a result, together with Mercia’s substantially recurring management fees, management expects H122 PAT to exceed £10m, with the FY22 adjusted operating profit (excluding the NVT net performance fee) expected to be materially ahead of market forecasts. The shares trade at a larger discou
Companies: Real Estate Credit Investments Limited
A key focus for the company in 2021/22 was to de-gear the Balance Sheet with sales at or above book value. Two separate property sales in Bristol, One Castle Park (£20m) and 135 Aztec West (£3.9m), have been agreed well ahead of their March 2021 book value and when the former completes in mid-December pro forma net LTV will reduce to c29%. Further sales of assets where the company has carried out its business plan can be expected, which would provide even greater financial firepower for acquisit
Companies: Circle Property Plc
Aviva’s trading update came with some satisfaction, albeit in line with what it had been guiding. All indicators are “on track” as communicated by the firm. The interesting area will come, in our view, from the pressure that activist Cevian is exercising on the firm to distribute more excess capital.
Companies: Aviva plc
Companies: NewRiver REIT plc
Companies: Shaftesbury PLC