The Renewables Infrastructure Group Limited

Specialist

New for 2019. Diversified exposure to renewables

Renewables Infrastructure Group is our lone newcomer to this asset group in 2019, replacing Bluefield Solar Income. The incoming trust boasts a similar yield, but its shares are trading at a much smaller premium – making it a better choice for new investors.

Renewables Infrastructure Group has a more diversified portfolio than the outgoing trust and the largest generating capacity in the sector. It offers exposure to onshore and offshore wind, solar energy and battery storage.

Run by two top teams in InfraRed Capital Partners and Renewable Energy Systems, the trust’s investment and operations managers respectively, it has a focus on the UK and, to a lesser extent, Northern Europe. In 2018, Scotland was home to 44% of its assets, followed by England at 24% and France at 12%.

The managers take a flexible approach and buy assets depending on where the most attractive subsidy regime is at a given point. They achieve diversification through earnings that are a combination of government-backed subsidies and cash generated for selling electricity in the wholesale market.

Architas, the multi-manager, uses the fund to gain exposure to an asset class that has high, predictable, inflation-linked cashflows and acts as a good diversifier to traditional asset classes such as equities and bonds.

Senior investment manager Nathan Sweeney says: ‘It is managed by a well-resourced team of financiers and technical specialists that should collectively ensure deal structuring and operational management is of a high standard.’

Shares in the trust have almost always been at a premium to net assets over the past three years. In 2018, they traded in a range of a discount of 0.6% to a premium of 9.7%.

Narrative and rating as of January 2019. 

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Name
The Renewables Infrastructure Group Limited
Manager
InfraRed Capital Partners Ltd
Type
Closed Ended Investment Company
ISIN
GG00BBHX2H91
Sector
Sector Specialist: Infrastructure - Renewable Energy
Launched
29/07/2013
OCF
1.08 %
3 Year Sharpe
1.32
Yield
5.8 %
Fund Size
£ 1.79 billion
NAV
113
Gearing
100
Discount Premium
9
The Company will seek to provide investors with long-term, stable dividends, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets which generate electricity from renewable energy sources, with a particular focus on onshore wind farms and solar PV parks.
Name
InfraRed Capital Partners Ltd
Address
SW1Y 4QU, London, United Kingdom
Legal Structure
Closed Ended Investment Company

Managers

Richard Crawford
Joined 07/29/2013

Data provided by Morningstar.

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