Factsheet: Bluefield Solar Income Fund

Specialist

Rated Fund 2017-2018. A popular trust for income seekers

This trust acquires and runs a portfolio of large-scale UK-based solar energy infrastructure assets to deliver long-term, stable dividends that grow in line with inflation. In the third quarter of 2017, it had 82 solar photovoltaic projects � 41 large-scale sites, 40 micro sites and one rooftop site � across England and Wales. Investors' returns are paid principally in the form of quarterly income distributions. The trust's yield at the end of 2017 was 5 per cent. Investment is in the hands of a team at solar energy expert Bluefield Partners, led by three founding partners, James Armstrong, Mike Rand and Giovanni Terranova. As the trust pays out all its income in dividends, the managers use debt to finance their investments. In 2016, they agreed a competitive long-term debt facility with Aviva Investors. The managers are confident that the cost of this debt can be covered without impacting the trust's dividends.

The managers target long-life investments expected to generate stable renewable energy output over a 25-year asset life. Single investments are limited to a maximum of 25 per cent of the portfolio on acquisition. Besides acquiring existing assets, the trust also funds the construction of new projects, which the managers point out is enabling them to create a tailor-made portfolio rather than having to wait for assets to become available in the smaller and more competitive secondary market. The trust has proved popular with income-seekers and its shares were on a premium approaching double digits at the end of 2017, but they do regularly dip down to close to net asset value, providing attractive entry points.

Narrative and ratings content all as of 01 January 2018.

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Name
Bluefield Solar Income Fund
Manager
Bluefield Partners LLP
Type
Closed Ended Investment Company
ISIN
GG00BB0RDB98
Sector
Sector Specialist: Infrastructure - Renewable Energy
Launched
12/07/2013
OCF
1.12 %
3 Year Sharpe
1.01
Yield
6.9 %
Benchmark
6.87164 %
Fund Size
£ 436.46 million
NAV
112
Gearing
64
Discount Premium
8
The Group invests in a diversified portfolio of solar energy assets, each located within the UK, with a focus on utility scale assets and portfolios on greenfield, industrial and/or commercial sites. The Group targets long life solar energy infrastructure, expected to generate stable renewable energy output over a 25-year asset life.
Holding %
Mikado 1 12.33 %
Mikado 2 12.22 %
West Raynham 11.33 %
Elms 6.67 %
Hardingham 4.62 %
Pentylands 4.36 %
Hoback 3.87 %
Goosewillow 3.86 %
Hill Farm 3.52 %
Burnaston (See Note 19) 2.91 %
Region %
Sector %
Name
Bluefield Partners LLP
Address
WC2N 4HS, London, United Kingdom
Legal Structure
Closed Ended Investment Company

Managers

James Armstrong
Joined 07/12/2013
Mike Rand
Joined 07/12/2013
Mike Rand
Joined 07/12/2013

Data provided by Morningstar.

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