Premier Miton Global Renewables Trust

Deep dive on developers

9 April 2024

The energy developers segment of Premier Miton Global Renewables Trust’s (PMGR’s) holdings accounts for 30.2% of its portfolio (at 29 February 2024). These developers can generate significantly higher returns than other sections of the portfolio (eg yield plays and investment trusts) due to higher initial capital investment and development risk. PMGR’s portfolio remains a diversified approach to renewable energy asset investing, with a mix across technologies, geographies and corporate structures. Asset values in renewables have been under some pressure of late due to rising bond yields and, in some sectors, falling forward power price curves, though these are two trends that have arguably run their course. MORE »

Are higher power prices here to stay?

31 August 2021

Premier Miton Global Renewables Trust (PMGR) is arguably unique among UK investment companies for its broad global focus on renewable energy securities, aiming for both income (current yield c 5.5%) and capital growth. Fund manager James Smith believes that renewable infrastructure operators, in which the trust invests, are likely to greatly benefit from a sustainable potential upward shift in power prices. He views this as driven primarily by increasing demand for electricity as the world transitions to cleaner sources of energy. The trust changed its mandate in late 2020, having shifted in recent years towards renewable energy stocks from its previous wider focus on utilities, water and energy companies. Given that most closed-ended renewable peers trade at a premium, a narrowing of PMGR’s discount over time could present an opportunity for investors. MORE »

On the crest of a renewable energy wave

5 February 2021

Premier Miton Global Renewables Trust (PMGR) is the new name of Premier Global Infrastructure Trust, reflecting an official change in mandate in late 2020 that codified an established shift towards renewable energy stocks in recent years. The partial rollover of the 2020 zero-dividend preference shares (ZDPs) has resulted in a smaller pool of total assets, but the trust retains a geared strategy and has benefited from this as its newer holdings in renewable energy stocks – many of them bought in the coronavirus-driven global equity market sell-off of Q120 – have performed strongly, leading to total returns for 2020 of c 30%. PMGR is arguably unique among UK investment companies for its broad global focus on renewable energy securities, aiming for both income (current yield c 5.5%) and capital growth. MORE »