Funds in Focus – Where to invest?

NextEnergy Solar Fund Limited

  • UK’s largest solar farm operator
  • 90 separate acquisitions of solar projects
  • Market capitalisation £630 million
  • Annual dividend yield c.6% (paid quarterly)
  • Gross return of 45% over past 5 years

‘Every hour the world receives enough energy from the sun to power the entire planet for a year’.

Background

NextEnergy Solar Fund Limited (NESF) is a solar infrastructure investment company primarily focused on the UK. As at 30 September 2020 the Company has completed 90 separate acquisitions of solar projects with total capacity installed of 755MW and total invested capital of approximately £950m. The company’s solar farms are almost all UK-based although it does own a small number of installations in Southern Italy and is seeking further opportunities outside of the UK. The Company has an investment limit of up to 30% of the Company’s gross asset value (GAV) in solar assets outside the UK. Currently, the non-UK investment represents 12% of GAV.

Investment Strategy

NESF’s investment objective is to provide ordinary shareholders with attractive risk adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of primarily UK-based solar energy infrastructure assets. As a result, returns to shareholders are primarily in the form of annual dividends rather than capital growth. Based on its current profile of investments, we the income is secured for a long time to come. The company should also be a beneficiary of the UK Governments new ‘Ten Point Plan for a Green Industrial Revolution’ The company’s shares are listed on the London Stock Exchange and are freely tradeable.

ESG

NESF invests with a view to holding its solar assets until the end of their useful life. NESF are committed to all ESG (Environmental, Social and Governance) principles and responsible investment. They are on a mission to generate a more sustainable future by leading the transition to using more clean energy. They believe that solar is the key technology for the transition away from fossil fuels towards a greener economy. By generating clean energy, NESF avoid 307,500 tonnes of CO2 emissions per annum while powering homes sustainably. Their ESG policy re-enhances their commitment to tackling climate change. You can read further into NESF’s ESG policy online at www.nextenergysolarfund.com/esg

Historic Performance

*Source – Financial Express


Guardcap Global Equity Strategy

Fund Size                            €1.46 billion

AMC                                      0.8%

Trading Currency               Euro

Liquidity                             Daily

Income                                 No

For this Fund in Focus, we have selected the Guardcap Global Equity Strategy, which has been a longstanding core pick for our clients looking to gain exposure to global equities. This fund is a concentrated, bottom-up strategy, managed by GuardCap Asset  Management, a specialist firm located in London,  which is part of the Guardian Capital Group. The GuardCap Global Equity team is distinguished by its highly focused long-term thinking, which enables its strategies to harness a sustained long term outperformance against global equity markets.

The fund seeks to invest in companies with strong balance sheets and who offer the genuine prospect of delivering long term growth. For Guardcap’ managers, very few companies meet their  exacting criteria. This no compromise attitude towards stock picking is backed by a highly rigorous and detailed investment process, with in-depth written reports and models prepared on each company considered for inclusion. The net result is a highly concentrated strategy offering unique exposure to the potential arising from sustainable, long-term growth companies. Most importantly, it has been a consistent outperformer over a long period. The fund size is €1.46 billion and holds c.25 stocks.

Geographic and Sectoral Exposures

where to invest my pension fund
Source Financial Express
Where to invest my pension fund
Source – Financial Express

Historic Performance

The fund has been a consistent outperformer over a sustained period and while the price fell sharply in March 2020 along with equity assets across the globe, it recovered very quickly and ahead of world markets.

Where to invest my pension fund
Source Financial Express

Updated – August 2020

This marketing information has been provided for discussion purposes only. It is not advice and does not take into account the investment needs and objectives, financial position, risk attitude, liquidity needs, capital security needs and/or capacity for loss of any particular person. It should not be relied upon to make investment decisions.
Warning: The figures refer to the past. Past performance is not a reliable indicator of future results.
Warning: The return may increase or decrease as a result of currency fluctuations.
Warning: If you invest in this product you may lose some or all of the money you invest.