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Renewable energy
Posted: 15 May 2017 18:20:37(UTC)

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Hi all,

I'm looking to find ways to diversify my portfolio, and have seen that there are a few renewable energy trusts that seem to provide reliable income. I generally shy away from trusts that sit on large premiums, but I wonder if it can be justified in these uncertain times. Has anyone dipped into these; and if so, are you happy to overpay?

chubby bunny
Posted: 15 May 2017 18:52:10(UTC)

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The VT UK Infrastructure Income fund may be of interest to you. It holds most of the big 'environmental' infrastructure trusts and targets a yield of 5% after charges. In their March factsheet they say, 'The Fund participated in four placements at significantly lower premiums than secondary market trading levels before the placements were announced'.
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Ludditeme on 15/05/2017(UTC), dlp6666 on 14/08/2017(UTC)
Posted: 15 May 2017 20:04:15(UTC)

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This discussion might be of interest to you.

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Ludditeme on 15/05/2017(UTC), dlp6666 on 14/08/2017(UTC)
Mr Helpful
Posted: 18 May 2017 10:58:08(UTC)

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We currently hold :-

Solar : FSFL, BSIF
Wind : UKW

One concern that will be found in researching renewables, is that if it were not for the generous Gov't Subsidies, then these generators would be substantially loss-making.
Future Govt's may move those subsidy goal-posts.

We therefore have not gone overboard with our weightings.
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Ludditeme on 18/05/2017(UTC), dlp6666 on 14/08/2017(UTC)
Posted: 18 May 2017 15:32:10(UTC)

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If you want to diversify with a single extra investment then I suppose something like VT UK Infrastructure might do the job, but I've tended to steer clear of funds-of-funds like this seems to be simply because you are paying two sets of charges - the charges on some of the underlying ITs are plenty high enough already without adding an extra 0.75% on the top.

If they have managed to acquire some of their investments at a lower premium then that's good for yield, but really most of their investments are probably already yielding rather more than the fund's 5% target anyway even at standard pricing.
Posted: 18 May 2017 16:39:06(UTC)

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I like thoughts of renewable energy trusts but like others I do worry about the subsidies which are dependant on the whims of governments. To me there feels an increasing number of climate change deniers in the current government - as there are in the US government.

As a result - having being looking at this area recently - I preferred TRIG as 15% is invested in France and the Republic of Ireland - and they appeared to be looking at Germany. That still doesnt make it brilliant but it might have a place in a diversified portfolio - so for me its a 5% holding type of thing.

You might want to look at something like INPP for a similar income feel (I worry about PPI being a subsidy and prone to political interference).

Lastly - I also wonder how all these infrastructure trusts will do when interest rates start to rise.
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Mr Helpful on 19/05/2017(UTC)
Captain Slugwash
Posted: 12 August 2017 17:19:20(UTC)

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Interesting article on wind farms.

My favourite line on subsidies....

'This top-up of nearly 100 per cent over the wholesale price – funded, of course, from consumer bills – makes wind farms very attractive, at least until they wear out (by which time developers hope to have sold them on to naive pension funds and investment trusts).'
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North Star on 13/08/2017(UTC), winki on 14/08/2017(UTC)
Joe Soap
Posted: 12 August 2017 22:57:41(UTC)

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You could hedge your bets on renewables versus conventional and buy into Siemens or GE? Win/win whatever happens.
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