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egl ecofin global utilities
dyfed
Posted: 05 February 2017 15:27:28(UTC)
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I bought a bit of this a while back to see what happened - I believe you clever guys refer to this as "opening a position" - as I liked the discount and the divi and the sector (the fees are a bit high at 1.25%, spread 2%). It hasn't done much but I am thinking about adding to my holding. It went through a major restructure a short time ago and I am unsure what this was all about and trying to find out before I commit further. Any one able to help? Or suggest an ETF that would do the job and isn't sky high price wise?
srg751
Posted: 05 February 2017 16:37:26(UTC)
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This explains the restructure.

Ecofin plc
Closed-end Funds
Further to a Scheme of Reconstruction which was approved by shareholders in September 2016,Ecofin Water & Power Opportunities plc (EWPO) ceased trading on 21 September 2016. Its two successor companies are Ecofin Global Utilities and Infrastructure Trust plc (Ecofin Global) and EF Realisation Company Limited (EF Realisation). The ordinary shares of Ecofin Global and EF Realisation began trading on the London Stock Exchange on 26 September 2016.
Ecofin Global's investment objectives are to achieve a high, secure dividend yield on its investment portfolio and to realise long-term growth in the capital value of its portfolio for the benefit of shareholders, while taking care to preserve shareholders' capital. The Company's assets are primarily invested in equity and equity-related securities of utility and infrastructure companies in developed countries although up to 10% of its assets may be comprised of investments in debt securities and a significant portion of the portfolio may also be comprised of holdings in cash or cash equivalents from time to time. For the purposes of investment, utility companies are those involved in the generation, transmission and distribution of electricity including the production of electricity from renewable sources; the transport, storage and distribution of gas; the abstraction, treatment and supply of water and the treatment of waste water; and the provision of environmental services such as recycling and waste management. Infrastructure companies are those that own and operate assets which are essential to the functioning of developed economies and to economic development and growth, notably transportation-related assets such as roads, railways, ports and airports.

Ecofin Global may make use of gearing to enable it to earn a high level of dividend income and to offer the Shareholders a geared return on their investment. The Directors believe that the use of gearing is justified given the nature of most of the companies in which Ecofin Global will invest; that is, companies which provide essential services, operate in regulated markets and within stable regulatory frameworks, and pay dividends. The nature and term of any borrowings are the responsibility of the Directors. The Company will not have any structural gearing but will utilise a flexible gearing policy with the ability to borrow amounts up to 25% of the Company’s net assets.
Ecofin Global’s accounts are maintained in sterling. Many of the Company’s investments are denominated and quoted in currencies other than sterling, and although the Company does not pursue a policy of hedging such investments back into sterling, it may do so from time to time, depending on market conditions.

EF Realisation is a closed-ended investment company incorporated in Guernsey, established as a successor vehicle to EWPO to hold the illiquid assets formerly owned by EWPO. EF Realisation’s investment objective is to conduct an orderly realisation of the assets of EF Realisation within two years from the date of EF Realisation’s admission to trading on the London Stock Exchange, to be effected in a manner that seeks to achieve a balance between returning cash to shareholders promptly and maximising the value of its portfolio.



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dyfed on 05/02/2017(UTC), Guest on 06/02/2017(UTC)
dyfed
Posted: 05 February 2017 19:58:04(UTC)
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thanks, I read all that too but it didn't tell me a thing! why did they do the restructuring?
Sara G
Posted: 05 February 2017 20:40:33(UTC)
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I came across this old CW article which may be of interest:

http://citywire.co.uk/we...ll-a-power-play/a769987

It argues that investors may have been put off the Trust as it wasn't a pure Utilities play, which may suggest one reason for the restructure.
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dyfed on 05/02/2017(UTC)
Keith Hilton
Posted: 05 February 2017 20:54:02(UTC)
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I hold this trust and I'm as much in the dark as the rest of you. Essentially, they've split off the poor performing assets to improve the performance of the main trust. Whilst this may improve the performance of the main trust going forward, it gives me some reservations about their decision making.

The EF Realisation fund is now probably akin to an "Opportunities" fund and to my mind was a value play recently, but has recovered since. Is there still value there? Probably, but no longer an absolute bargain!
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dyfed on 05/02/2017(UTC)
Big boy
Posted: 08 February 2017 19:33:59(UTC)
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I think this stock should be left to the Professionals. Private Investors should keep holding down to a few % of Portfolios if they wish to take an interest. Plenty of attractive vanilla ITs on good discount which can be purchased without going into something you don't fully understand.
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dyfed on 08/02/2017(UTC)
tom_b
Posted: 08 February 2017 20:17:38(UTC)
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I noticed John Baron held this last year prior to its restructuring, there is some commentary about it on his website.

Also BTEM had a large holding prior to the restructuring last year, I'm not aware whether they still hold either of the replacement entitites.

The old Ecofin trust fund reached a 30% discount last year, whereas EGL is currently under 10% discount.
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dyfed on 08/02/2017(UTC)
john_r
Posted: 08 February 2017 23:41:58(UTC)
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This is my thoughts on the Ecofin IT's (which I still hold some by default)
The original Ecofin ECWO closed ended fund consisted of a split capital trust and 6% yielding subscription shares. It is quite normal to have a limited life on this type of fund and I believe the zero's and the subscription shares expired last year prompting a vote on continuation.
The original ECWO held significant holdings in unlisted shares which are sometimes difficult to get rid of in a fire sale so a seperate realisation fund EFR was created to hold these special holdings so that they could be redeemed gradually or left to mature. EGL was created for the more orthodox holdings.
After paying off zeros and redeeming subscription shares the remaining fund was reconstructed - with continuing investors being awarded some of each trust.
The new EGL portfolio has adopted a number of high yielding shares offering around 5%-6% yield (not sure if supported from capital) but I would suggest you may be able to find this yield elsewhere without taking on this fund. The enegy sector can be a difficult sector as we have seen over the last couple of years. Would I buy more of these shares today?.........NO!


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dyfed on 09/02/2017(UTC)
Tyrion Lannister
Posted: 11 June 2018 00:50:12(UTC)
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I came across this thread on Google while doing some research.

I bought EGL on impulse (usually a mistake, I might learn that one day!) about a year ago. It's less than 2.5% of my portfolio and I've no intention of topping up so I'm thinking of selling it.

I do want to invest in infrastructure/utilities as a diversifier though, so I'd be grateful for suggestions of any alternatives.

Edit: As an aside, HL list its top holding as "Other Investments: 21". Does anyone know what this is?
Joe Soap
Posted: 11 June 2018 08:52:29(UTC)
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Tyrion Lannister;63686 wrote:
I came across this thread on Google while doing some research.

I bought EGL on impulse (usually a mistake, I might learn that one day!) about a year ago. It's less than 2.5% of my portfolio and I've no intention of topping up so I'm thinking of selling it.

I do want to invest in infrastructure/utilities as a diversifier though, so I'd be grateful for suggestions of any alternatives.

Edit: As an aside, HL list its top holding as "Other Investments: 21". Does anyone know what this is?

My take is that if you want utilities exposure, EGL is a great way to get that with the bonus of holding companies outside the UK. Take a look at buy/sell spread too, it is usually awful.
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dlp6666 on 11/06/2018(UTC), Tyrion Lannister on 11/06/2018(UTC), Peter59 on 11/06/2018(UTC), Shetland on 21/06/2018(UTC)
Shetland
Posted: 20 June 2018 10:04:50(UTC)
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I have just checked on HL and with attempted buy and sell the sell price was 121p and the buy was 122p so small spread. The yield is shown as 5.24 % and the discount 13.2%
Split Cap Jim
Posted: 21 June 2018 05:28:38(UTC)
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Tyrion Lannister;63686 wrote:
I came across this thread on Google while doing some research.

I bought EGL on impulse (usually a mistake, I might learn that one day!) about a year ago. It's less than 2.5% of my portfolio and I've no intention of topping up so I'm thinking of selling it.

I do want to invest in infrastructure/utilities as a diversifier though, so I'd be grateful for suggestions of any alternatives.

Edit: As an aside, HL list its top holding as "Other Investments: 21". Does anyone know what this is?


I think its just HL reporting strangely - if you look in the annual report on the HL web-siste, the top 30 investments are broken out, and then their are another 21 investments making up the remaining 20% - each of which must be less than ~1.5%.

Fo what its worth I was invested in the original trust ECWO - which had an ok long term track record, but for the last ~5 years of its life, performance was mediocre. I wouldn't invest until there is some evidence of good long term performance. Generally I don't really see the point of stable but ultimately poor performing infrastructure funds at this point in my investment life.
Though I do hold UEM, which provides Emerging Countries exposure to infrastructure - though I just consider this to be a more stable play on Emerging markets.
3 users thanked Split Cap Jim for this post.
Tyrion Lannister on 21/06/2018(UTC), Shetland on 21/06/2018(UTC), dlp6666 on 22/06/2018(UTC)
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