04 August 2022
Premier Miton Global Renewables Trust
Plc (the ‘Company’)
Legal Entity Identifier: 2138004SR19RBRGX6T68
Premier Miton Global Renewables Trust PLC's half report and
accounts for the six months to 30 June
2022 is available at
https://www.globalrenewablestrust.com/documents/.
It has also been submitted in full unedited text to the
Financial Conduct Authority's National Storage Mechanism and is
available for inspection
at data.fca.org.uk/#/nsm/nationalstoragemechanism in
accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.
PREMIER MITON
GLOBAL RENEWABLES
TRUST PLC
Half Year Report
for the six months
to 30 June
2022
INVESTMENT OBJECTIVES
The investment objectives of the Premier Miton Global Renewables
Trust PLC are to achieve a high income from, and to realise
long-term growth in the capital value of its portfolio. The Company
seeks to achieve these objectives by investing principally in the
equity and equity-related securities of companies operating
primarily in the renewable energy sector, as well as other
sustainable infrastructure investments.
GREEN ECONOMY – LONDON STOCK
EXCHANGE
In January 2022, the Company
received London Stock Exchange’s Green Economy Mark, a
classification which is awarded to companies and funds that are
driving the global green economy. To qualify for the Green Economy
Mark, companies and funds must generate 50% or more of their total
annual revenues from products and services that contribute to the
global green economy.
PRI – PRINCIPLES FOR RESPONSIBLE INVESTMENT
The Fund Manager integrates Governance and Social responsibility
into its investment process. Premier Miton is a signatory to the
Principles for Responsible Investment, an organisation which
encourages and supports its signatories to incorporate
environmental, social, and governance factors into their investment
and ownership decisions.
FE FUNDINFO – CROWN FUND RATING – 4 STARS
The Crown Fund Rating is a global quantitative rating that is
based on a fund’s historical performance relative to an appropriate
benchmark. The rating relies on three key measurements - alpha,
volatility and consistent performance, to dictate the one-to-five
Crown score. The ratings are designed to help investors distinguish
funds that have superior performance in terms of stock picking,
consistency and risk control.
COMPANY HIGHLIGHTS
for the six months to 30 June
2022
|
Six months to |
Year ended |
|
|
30 June |
31 December |
|
|
2022 |
2021 |
|
Total Return Performance |
|
|
|
Total Assets Total Return[1] |
(1.5%) |
19.8% |
|
S&P Global Clean Energy Index
(GBP)[2] |
0.4% |
(22.5%) |
|
Ongoing charges[3] |
1.71% |
1.65% |
|
|
Six months to |
Year ended |
|
|
30 June |
31 December |
|
|
2022 |
2021 |
% change |
Ordinary Share Returns |
|
|
|
Net Asset Value per Ordinary Share
(cum income)[4] |
200.66p |
210.60p |
(4.7%) |
Mid-market price per Ordinary
Share |
175.50p |
196.50p |
(10.7%) |
Discount to Net Asset Value |
(12.5%) |
(6.7%) |
|
Net Asset Value Total Return[5] |
(3.1%) |
26.5% |
|
Share Price Total Return[2] |
(8.9%) |
30.7% |
|
|
Six months to |
Six months to |
|
|
30 June |
30 June |
|
|
2022 |
2021 |
% change |
Returns and Dividends |
|
|
|
Revenue Return per Ordinary
Share |
3.95p |
4.45p |
(11.2%) |
Net Dividends declared per Ordinary
Share |
3.50p |
3.50p |
0.0% |
Historic Full Year Dividends |
|
|
|
|
31 December |
31 December |
|
Dividends paid in respect of the
year to: |
2021 |
2020 |
% change |
Dividend |
7.00p |
10.20p |
(31.4%) |
|
Six months to |
Year ended |
|
|
30 June |
31 December |
|
|
2022 |
2021 |
% change |
Zero Dividend Preference Share
Returns |
|
|
|
Net Asset Value per Zero Dividend
Preference Share[4] |
108.02p |
105.44p |
2.4% |
Mid-market price per Zero Dividend
Preference Share[2] |
107.50p |
107.50p |
0.0% |
(Discount)/premium to Net Asset
Value |
(0.5%) |
2.0% |
|
|
|
As at |
As at |
|
|
30 June |
31 December |
|
|
2022 |
2021 |
Hurdle Rates (Per Annum) |
|
|
|
Ordinary Shares |
|
|
|
Hurdle rate to return the 30 June
2022 share price of 175.50p (December 2021: 196.50p) at 28 November
2025[6] |
(0.6%) |
0.7% |
|
Zero Dividend Preference Shares |
|
|
|
Hurdle rate to return the redemption
share price for the 2025 ZDPs of 127.6111p at 28 November
2025[7] |
(25.6%) |
(23.1%) |
|
|
Six months to |
Year ended |
|
|
30 June |
31 December |
|
|
2022 |
2021 |
% change* |
Balance Sheet |
|
|
|
Gross Assets less Current
Liabilities |
|
|
|
(excluding Zero Dividend Preference
Shares) |
£52.0m |
£53.4m |
(2.7%) |
Zero Dividend Preference Shares |
(£15.4m) |
(£15.0m) |
(2.4%) |
Equity Shareholders’ Funds |
£36.6m |
£38.4m |
(4.7%) |
Gearing on Ordinary Shares[8] |
42.0% |
39.0% |
|
Zero Dividend Preference Share Cover
(non-cumulative)[9] |
2.68x |
2.74x |
|
[1] Source: Premier Fund Managers Ltd (“PFM Ltd”). Based on
opening and closing total assets plus dividends marked
“ex-dividend” within the period.
[2] Source: Bloomberg.
[3] Ongoing charges have been based on the Company’s management
fees and other operating expenses as a percentage of gross assets
less current liabilities over the period (excluding ZDPs’ accrued
capital entitlement).
[4] Articles of Association Basis.
[5] Source: PFM Ltd. Based on opening and closing NAVs plus
dividends marked “ex-dividend”.
[6] Source: PFM Ltd. The Ordinary Shares Hurdle Rate is the
compound rate of growth of the total assets required each year to
meet the Ordinary Share price at 30 June
2022.
[7] Source: PFM Ltd. The ZDP Shares Hurdle Rate is the compound
rate that the total assets could decline each year until the
predetermined redemption date, for ZDP shareholders still to
receive the redemption entitlement.
[8] Source: PFM Ltd. Based on Zero Dividend Preference Shares
divided by Ordinary Shareholders’ Equity at end of each period.
[9 Source PFM Ltd. Non-cumulative cover = Gross assets at period
end divided by final repayment of ZDP Shares plus management fees
charged to capital.
*% change is calculated on actual figures, and may be different
from that which could be obtained by using rounded figures shown
within this section.
CHAIRMAN’S STATEMENT
for the six months to 30 June
2022
Introduction
In the Chairman’s Statement within the 2021 Annual Report, I
noted that the main headwind faced by markets in 2022 would likely
be the extent to which inflation would prove to be more entrenched
than transitory. In the event, it has become increasingly clear
that inflation will have both a higher peak, and will last longer
than was anticipated six months ago.
The underlying causes of the current high level of inflation are
many, including supply deficiencies resulting from an
ill-preparedness for post-Covid economic reopening, the expansion
of the money supply, and higher commodity prices, partly resulting
from the war in Ukraine. Central
banks were caught behind the inflationary curve, and have been
forced to react in a sharper way than they perhaps could have, if
they had started to tighten monetary conditions at an earlier
stage. The risk now is that, in order to maintain credibility, they
go too far in raising rates, triggering, or exacerbating, an
anticipated recession.
While the investment environment is undoubtedly challenging, I
believe that the portfolio is well positioned, having exposures to
energy markets and a good level of inflation protection within the
underlying revenues of investee companies.
Performance
Equity markets have been weak in the first half of 2022 with
both Europe and the US
experiencing double-digit negative returns. The UK with its higher
weighting to “old economy” energy and resource companies, fared
slightly better but was still in negative territory.
The underlying performance of the Company was marginally behind
its performance benchmark, the S&P Global Clean Energy Index,
which recorded a positive return in sterling of 0.4%. PMGR’s
capital structure means that market movements are amplified in the
Ordinary Share Net Asset Value (“NAV”), and the NAV total return
was negative 3.1%.
The Company benefitted from good performances in its UK
holdings, an area to which the portfolio has a significant
weighting. Offsetting this was weakness in the Chinese positions.
In addition, the holding in Finnish generator Fortum was sold in
the period at a substantial discount to the level at which it
started the year. Fortum’s Russian investments, accounting for
approximately 20% of profits, caused its shares to fall sharply.
Following the sale, the portfolio has no investment exposure to
Russia.
Unfortunately, and in common with many other investment trusts,
the discount between the Company’s NAV per share and its share
price increased, and was 12.5% at the end of June. PMGR’s share
price fell by 10.7%, with a share price total return of negative
8.9% taking dividends into account.
Review of the six months
Russia’s war in Ukraine looks
likely to continue for some time. Market reaction was at first
muted, but the implications for global energy and food prices are
now becoming apparent. Russia is
responding to sanctions by restricting volumes of natural gas sent
to Europe, and the outlook for
supplies over the coming winter is uncertain.
Combined with a reduction in French nuclear output caused by
technical outages for repairs, and higher prices for carbon
emissions, it is unsurprising therefore, that European power prices
have remained at exceptionally high levels. This will undoubtedly
cause much hardship, and governments can be expected to seek ways
to restrict “excess profitability” in the energy sector, including
renewables. This may take the form of windfall taxes, or direct
intervention in markets.
However, in order to secure a long-term future of energy
independence from Russia,
Europe has little choice but to
accelerate the build out of renewable electricity facilities. We
therefore expect that any actions against the renewable generation
sector will be modest, so as not to discourage investment.
In this regard, the European commission published proposals to
reduce reliance on Russian energy, removing obstacles to the
permitting of new renewable energy assets, and to encourage the
development of long-term corporate power purchase contracts. In
total, it aims to almost triple the EU’s wind and solar generation
capacities by 2030. In turn, the UK has increased its already
ambitious targets for offshore wind.
High inflation is an overriding concern for markets. Here I
would note that the majority of operating costs in the renewable
energy sector are fixed. Capital costs for new build assets,
including for equipment such as solar panels, or logistics such as
shipping, which had increased in 2021, are now moderating. In any
event, higher capital costs are more than offset by greater
increases in electricity prices. Lastly, many revenue streams such
as corporate power sales agreements, or government incentive
mechanisms, are often inflation linked. Higher inflation can
therefore be of benefit to many renewable energy companies.
Despite being relatively insulated against the issues described
above, the Chinese market has also fallen, not helped by the
government’s zero-Covid policy.
Finally, the last remaining holding that was “non-compliant”
with the renewable energy investment policy, Indian coal generator
OPG Power Ventures, was sold in the period.
Earnings and Dividends
Revenue return per Ordinary Share of 3.95p represented a fall of
11.2% on the 4.45p reported for the first half of 2021. This is
mainly a result of the following:
Firstly, the sale of the position in Fortum, which paid a
relatively large dividend only once a year in the first half.
Reinvestment of the proceeds should mean that the loss of this
dividend is recouped in the second half.
Secondly, the first half of 2021 contained the beneficial
receipt of historic overseas tax reclaims, which did not occur in
2022.
Despite this, underlying revenue generation has been good.
Companies have either increased or held their dividends, with
dividend increases from the Trust’s larger Chinese investments
being particularly encouraging. In addition, the strength of the US
dollar, Hong Kong dollar (pegged
to the US dollar), and Canadian dollar, has increased the sterling
value of dividends received from investments denominated in those
currencies.
On 30 June, the Trust paid a first interim dividend of 1.75p per
share. The Board has declared a second interim dividend of 1.75p
per share, to be paid on 30 September
2022 and will be marked ex-dividend on 1 September 2022. These dividends are consistent
with those paid in 2021.
Change of brokership
Following a review of the Company’s brokership arrangements, the
directors appointed finnCap Capital Markets, replacing Singer
Capital Markets, as the Company’s stockbroker with effect from
15 March 2022. The directors remain
committed to growing the size of the Company.
Outlook
Sadly, I expect the war in Ukraine to drag on for some time. It will take
time for the full effects to be felt, and longer still for
Europe to wean itself off Russian
energy. In this environment, energy prices are likely to stay at
elevated levels, and returns on renewable energy assets should
therefore remain attractive.
The effect of the war in Ukraine on energy prices and inflation is not
limited to Europe; it is having a
global impact. In addition, the worldwide effort to lower carbon
emissions is a fundamental shift that is driving investment in
renewables. Hence, the company’s portfolio of a carefully selected
number of stocks, diversified by region and technology, is well
positioned to benefit from the increased global demand for
renewable energy.
Gillian Nott OBE
Chairman
3 August 2022
INVESTMENT MANAGER’S REPORT
for the six months to 30 June
2022
Market review
In the first half of 2022, the renewable energy sector
benefitted from some strong tailwinds, offset by a worsening
economic environment.
As noted in the Chairman’s statement, the high electricity price
environment is to the benefit of renewable energy companies,
particularly in Europe, which is
experiencing unprecedented gas and electricity prices. In addition,
with governments more concerned than ever about energy security,
domestic sources of energy such as renewables should see enhanced
growth and political goodwill. Large energy users are increasingly
looking to sign long-term contracts with renewable producers, not
only for environmental reasons, but to lock in long term
electricity purchases at a reasonable price.
Offsetting this has been the high inflation environment, against
which can be attributed much of the poor performance of both equity
and bond markets during the period.
PMGR’s investment strategy over the past 12 months has been to
prioritise European and UK renewables, with a lower weighting to
North America. UK and European
renewable companies tend to have a higher degree of inflation
linkage, and greater exposure to power prices, than their North
American counterparts. North American renewables tend to sell power
on long-term contracts with pre-determined price paths, resulting
in a rather “bond-like” income stream. In consequence, their
valuations can be expected to have a higher level of sensitivity to
movements in interest rates.
This has, in the main, been a correct investment decision for
the first half of 2022, and many of the larger European holdings
have performed well. UK renewable companies have performed
particularly well, rewarding the portfolio’s overweight position.
By contrast, the US and Canadian holdings have lost value in local
currency, although this has been almost exactly offset by the
stronger dollar, with their sterling performance being about flat
on average.
The biggest contributor to negative performance in the period
were the three large Chinese holdings (China Suntien Green Energy,
China Everbright Environment, and China Longyuan Power), discussed
in more depth below. Harsh lockdown policies have undoubtedly hurt
sentiment, and the strong dollar environment has encouraged foreign
investors to repatriate capital back to the US. However, we
continue to believe these are attractive investments, with positive
operational environments and modest valuation metrics. Reflecting
this, all three recorded very strong dividend increases in respect
of 2021.
The other major negative in the period relates to Finnish
nuclear and hydro generator, Fortum, a 4.3% holding at December 2021, sold at a loss in the period.
While its core business has performed well, its Russian
investments, accounting for approximately 20% of operating profit,
left it very exposed on the Russian invasion of Ukraine. The portfolio has no Russian exposure
following this sale.
Portfolio review
No major changes were made to the portfolio during the first
half of 2022. The weighting to China fell on relative under-performance,
while the UK increased on out-performance. Europe was level with the sale of Fortum
offset by good performances in other holdings. North America was lower, on net sales of
investments.
Listed renewable energy companies can be categorised into two
broad groupings. Firstly, the investment companies, often referred
to as yield companies or “yieldcos”, which usually acquire built,
or construction ready, assets paying out the majority of cash-flow
to investors, and raising capital through new equity. Secondly,
integrated development companies, which develop projects from first
inception, retaining some assets but raising capital through a
combination of retained earnings and project sales.
Yieldcos & Funds
The increased investment in the UK yieldcos, undertaken in 2021,
worked well in the period. Greencoat UK Wind was particularly
strong, its shares increasing by 9.5%. Greencoat has a higher
exposure to power markets than other UK renewable investment
companies, with less hedging or long term power sales within its
portfolio.
Likewise NextEnergy Solar Fund and the Foresight Solar Fund,
also performed well, with share price gains of 7.3% and 15.2%
respectively in the period.Both are diversifying from their core UK
solar mandates, expanding into new geographies and related
investment areas such as energy storage. We continue to believe
that the long-term power price forecasts used (provided by third
party consultancies) in the calculation of NAVs in the UK, are
overly conservative and that NAVs may prove to be an understatement
of eventual value. In addition, the UK renewable investment
companies benefit from the inflation linked incentive schemes
covering part of their revenues.
A new position in Octopus Renewable Infrastructure (“ORIT”) was
started in the period. ORIT has a diversified portfolio of European
assets, covering Finland,
Sweden, Poland as well as the UK and Ireland, many of which are in
construction.
The portfolio’s holdings in North American yieldcos were less
successful, although share price falls were offset by positive
currency movements. Atlantica Sustainable Infrastructure, Clearway
Energy (A), and Transalta Renewables, saw their share prices fall
by 9.8%, 4.5% and 12.3% respectively. We attribute these movements
to valuation pressures resulting from increased yields and interest
rates. Meanwhile, the companies continue to invest and report solid
results.
PORTFOLIO SECTOR ALLOCATION
|
December 2021 |
June 2022 |
Renewable energy developers |
28.64% |
32.35% |
Yieldcos & funds |
25.69% |
32.11% |
Renewable focused utilities |
14.58% |
9.36% |
Energy storage |
6.90% |
8.21% |
Biomass generation and
production |
7.30% |
6.72% |
Waste to energy |
6.55% |
5.69% |
Renewable technology and
service |
2.79% |
2.44% |
Electricity networks |
5.03% |
2.25% |
Carbon markets |
1.20% |
0.87% |
Liquidation portfolio |
1.32% |
0.00% |
Source: PFM Ltd
Renewable Energy Developers
PMGR’s two Chinese renewable energy developers, China Suntien
Green Energy and China Longyuan Power, following an exceptionally
strong 2021, both lost value in the first half of 2022, their
shares falling by 34.2% and 16.7%. This was despite reporting 2021
earnings growth of 43.0% and 27.6%, and dividend growth in respect
of 2021 of 22.8% and 25.0% respectively.
Europe is host to several
excellent renewable energy developers. German listed RWE is a
company that is making the transition from a predominantly fossil
fuel based generator, to one of the world’s largest renewable
companies, operating globally with a particular strength in
offshore wind. RWE is aiming to invest Euro
50bn in its core renewable and flexible generation business
by 2030, while at the same time managing a phase out of its coal,
lignite, and nuclear generation assets. RWE reported excellent 2021
financial results, and has raised its 2022 expectations on the back
of strong markets and continued growth. Its shares however fell
1.7% over the first half of the year.
In June 2021, Acciona, a Spanish
company, spun out its renewables business, Acciona Energias,
Acciona retaining an approximate 83% holding. Like RWE, Acciona
Energias is a sizable, globally diversified, renewable developer.
While the renewables subsidiary is the substantial majority of the
business, Acciona also has various other businesses mainly focussed
around infrastructure. Acciona has traded at a discount to the
value implied by its renewables subsidiary, however this has fallen
over the past year, and we have moved most of the position into the
pure-play renewables business. Both shares performed well in the
period.
We added to the position in Spanish listed global solar
developer Grenergy, which has an extensive solar growth pipeline
with a particularly strong position in both Spain and Chile. Its shares reacted well to higher power
prices, gaining 16.8%.
Northland Power, a Canada based
global renewables business mainly focussed on offshore wind (the
construction of its most recent project being featured on the cover
of this report), recorded a share price gain of 1.4% in Canadian
dollars, although in sterling terms this translated to a gain of
11.5%.
There are an increasing number of quality European listed
renewable developers. We have increased or maintained positions in
MPC Energy Solutions (which is building a renewables portfolio
concentrating on Central American and Caribbean), 7C Solarparken (mainly German
solar), Bonheur (Scandinavian and UK wind, plus offshore
installation vessels), and Enefit Green (Baltic renewables),
together with several others. While not paying high dividends, they
exhibit strong growth and benefit from higher energy prices.
PORTFOLIO GEOGRAPHIC ALLOCATION
|
December 2021 |
June 2022 |
United Kingdom |
27.92% |
33.11% |
Global |
19.10% |
20.35% |
Europe (excluding UK) |
17.74% |
16.81% |
China |
19.11% |
15.79% |
North America |
12.66% |
11.47% |
Latin America |
2.14% |
2.46% |
India |
1.33% |
0.00% |
Source: PFM Ltd
Other sectors
Biomass producer and generator, Drax
Power, had a solid half, its shares increasing by 6.3%,
although had been higher until rumours of the UK government
imposing a windfall tax acted to dampen the market’s
enthusiasm.
Waste to energy company, China Everbright Environment, was weak
in common with the other Chinese holdings, falling by 26.0%. This
was despite continued solid earnings, up 13.1% in 2021, with full
year dividends up 13.3%
UK energy storage funds performed well, as the grid operator
faces a difficult task in balancing the UK’s energy flows, made
more volatile by increased renewable energy on the system. The
Trust’s largest position, Gresham House Energy Storage, gained
20.3% Harmony Energy and Gore Street Energy Storage also performed
well with share price gains of 12.6% and 2.5%.
We continue to like the “hidden value” of the quality renewable
businesses within the portfolio’s renewable focussed utilities,
those utilities with substantial and growing renewable energy
businesses. Despite very solid operational and financial results,
share price moves were, however, muted on the difficult economic
environment. SSE’s March 2022 results
were strong, with a 22% gain in normalised earnings. We added to
the Iberdrola position, which also produced good 2021 financial
results, its renewable energy business being particularly strong.
Algonquin Power & Utilities’ strategy is to consolidate smaller
US utility companies while expanding its nationwide renewables
business. 2021 results were strong with several new renewable
assets commissioned, plus the acquisition of Kentucky Power.
Income
The portfolio has a healthy level of underlying dividend growth.
The strong dividend increases seen in the main Chinese investments
are discussed above. Also worthy of note among the larger holdings,
was the 9.9% increase in Drax’s full year 2021 dividend, the 5.9%
growth at RWE, plus 10.0% growth for Algonquin Power &
Utilities.
We expect strong results for the UK renewable energy investment
companies in 2022, which should help drive their dividends higher.
For instance, Greencoat UK Wind has recently announced a 7.5%
increase in its quarterly payment.
The portfolio aims to achieve a balanced return including a high
income together with capital growth over the long-term. In this
regard, almost 30% of the portfolio is invested in companies with
dividend yields below 2.5%, i.e. they are held primarily for
capital appreciation.
Currency
Given the gearing within PMGR’s capital structure, with an
international currency exposed portfolio, part funded by sterling
denominated ZDP shares, currency movements are magnified within the
NAV. Therefore, we have adopted a policy of cautious currency
hedging, ensuring that ZDP liability is covered by sterling assets,
including currency hedging contracts.
Hedging was focussed on the Euro exposure in the period, and
sterling fell by 2.3% against the Euro, resulting in hedging losses
of £0.3m. With the inflationary environment meaning that the ECB is
forced to end its QE programme, we are concerned that the yield
spreads between higher credit Euro countries, and those of more
indebted Southern European countries will widen, possibly
precipitating another Euro crisis. Therefore, we expect to maintain
hedges against the Euro covering the majority of Euro exposure
until the economic situation is clearer.
The US dollar and Canadian dollars, which gained 10.0% and 8.4%
against sterling over the first half of the year, were unhedged so
the currency gains were captured in full.
Portfolio activity
Investment activity levels were relatively modest, with
purchases of £7.7m and sales of £7.6m. This is a reduction of
investment activity levels compared to 2021, reflecting the settled
nature of the portfolio.
Outlook
2022 has so far illustrated the many benefits of renewable
energy. These include firstly, security of supply versus imported
fossil fuels (often imported from unstable regimes). Secondly,
renewables have steady and low costs that are not subject to the
volatility of international commodity markets. Thirdly, with many
governments looking to extend the lives of coal-fired power
stations, and the costs of carbon emissions increasing, low carbon
energy sources are needed more than ever. As such, we remain
optimistic for the sector’s prospects.
James Smith
Premier Fund Managers Limited
3 August 2022
INVESTMENT PORTFOLIO
at 30 June 2022
Company |
Activity |
Country |
Value
£000 |
% of total
investments |
Ranking
June
2022 |
Ranking
December
2021 |
Greencoat UK Wind |
Yieldcos & funds |
United Kingdom |
3,147 |
6.1 |
1 |
6 |
Drax Group |
Biomass generation and
production |
United Kingdom |
3,022 |
5.9 |
2 |
3 |
NextEnergy Solar Fund |
Yieldcos & funds |
United Kingdom |
2,987 |
5.8 |
3 |
7 |
China Everbright Environment |
Waste to energy |
China |
2,926 |
5.7 |
4 |
2 |
China Suntien Green Energy |
Renewable energy developers |
China |
2,854 |
5.5 |
5 |
1 |
Atlantica Sustainable
Infrastructure |
Yieldcos & funds |
Global |
2,521 |
4.9 |
6 |
10 |
Gresham House Energy Storage
Fund |
Energy storage |
United Kingdom |
2,384 |
4.6 |
7 |
12 |
Grenergy Renovables |
Renewable energy developers |
Global |
2,182 |
4.2 |
8 |
16 |
RWE |
Renewable energy developers |
Europe (ex. UK) |
2,114 |
4.1 |
9 |
4 |
China Longyuan Power |
Renewable energy developers |
China |
1,909 |
3.7 |
10 |
11 |
Clearway Energy ‘A’ |
Yieldcos & funds |
North America |
1,840 |
3.6 |
11 |
13 |
Foresight Solar Fund |
Yieldcos & funds |
United Kingdom |
1,810 |
3.5 |
12 |
18 |
Iberdrola |
Renewable focused utilities |
Global |
1,704 |
3.3 |
13 |
19 |
Algonquin Power and Utilities |
Renewable focused utilities |
North America |
1,656 |
3.2 |
14 |
9 |
SSE |
Renewable focused utilities |
United Kingdom |
1,454 |
2.8 |
15 |
15 |
Northland Power Income Fund |
Renewable energy developers |
Global |
1,221 |
2.4 |
16 |
20 |
Octopus Renewable Infrastructure |
Yieldcos & funds |
United Kingdom |
1,188 |
2.3 |
17 |
– |
National Grid |
Electricity networks |
Global |
1,157 |
2.2 |
18 |
5 |
TransAlta Renewables |
Yieldcos & funds |
North America |
1,131 |
2.2 |
19 |
17 |
Harmony Energy Income Trust |
Energy storage |
United Kingdom |
1,115 |
2.2 |
20 |
21 |
Corporation Acciona Energias
Renovables |
Renewable energy developers |
Europe (ex. UK) |
1,107 |
2.1 |
21 |
– |
MPC Energy Solutions |
Renewable energy developers |
Latin America |
795 |
1.5 |
22 |
23 |
Acciona |
Renewable energy developers |
Europe (ex. UK) |
755 |
1.5 |
23 |
14 |
Gore Street Energy Storage Fund |
Energy storage |
United Kingdom |
721 |
1.4 |
24 |
24 |
New Energy Solar |
Yieldcos & funds |
North America |
674 |
1.3 |
25 |
22 |
Greencoat Renewable |
Yieldcos & funds |
Europe (ex. UK) |
604 |
1.2 |
26 |
27 |
Bonheur |
Renewable energy developers |
Europe (ex. UK) |
590 |
1.1 |
27 |
41 |
7C Solarparken |
Renewable energy developers |
Europe (ex. UK) |
518 |
1.0 |
28 |
30 |
Omega Geracao |
Renewable energy developers |
Latin America |
472 |
0.9 |
29 |
32 |
KS Global Carbon Strategy |
Carbon markets |
Global |
446 |
0.9 |
30 |
36 |
China Everbright Greentech |
Biomass generation and
production |
China |
432 |
0.8 |
31 |
28 |
Eneti |
Renewable technology and service |
Global |
418 |
0.8 |
32 |
29 |
Fusion Fuel Green |
|
|
|
|
|
|
(incl. warrants) |
Renewable technology and service |
Europe (ex. UK) |
413 |
0.8 |
33 |
33 |
Atrato Onsite Energy |
Renewable energy developers |
United Kingdom |
387 |
0.8 |
34 |
39 |
Enefit Green |
Renewable energy developers |
Europe (ex. UK) |
339 |
0.7 |
35 |
35 |
Slitevind |
Renewable energy developers |
Europe (ex. UK) |
338 |
0.7 |
36 |
– |
NextEra Energy Partners |
Yieldcos & funds |
North America |
306 |
0.6 |
37 |
– |
Boralex |
Renewable energy developers |
Global |
273 |
0.5 |
38 |
– |
Seaway 7 |
Renewable technology and service |
Global |
247 |
0.5 |
39 |
31 |
Solaria Energía y Medio Ambiente |
Renewable energy developers |
Europe (ex. UK) |
244 |
0.5 |
40 |
38 |
Pacifico Renewables |
Yieldcos & funds |
Europe (ex. UK) |
181 |
0.4 |
41 |
42 |
Ocean Sun |
Renewable technology and service |
Global |
179 |
0.4 |
42 |
37 |
Innergex Renewable |
Renewable energy developers |
North America |
166 |
0.3 |
43 |
44 |
GreenVolt |
Renewable energy developers |
Europe (ex. UK) |
130 |
0.3 |
44 |
– |
US Solar Fund |
Yieldcos & funds |
North America |
126 |
0.2 |
45 |
– |
Cloudberry Clean Energy |
Renewable energy developers |
Europe (ex. UK) |
121 |
0.2 |
46 |
– |
Scatec |
Renewable energy developers |
Global |
119 |
0.2 |
47 |
40 |
|
|
|
51,423 |
99.8 |
|
|
PMGR Securities 2025 PLC |
ZDP subsidiary |
United Kingdom |
50 |
0.1 |
|
|
PGIT Securities 2020 PLC(in
liquidation) |
ZDP subsidiary |
United Kingdom |
50 |
0.1 |
|
|
Total investments |
|
|
51,523 |
100.0 |
|
|
INTERIM MANAGEMENT REPORT
Premier Miton Global Renewables Trust PLC is required to make
the following disclosures in its Half Year Report:
PRINCIPAL RISKS AND UNCERTAINTIES
The Board believes that the principal risks and uncertainties
faced by the Company continue to fall into the following
categories:
• Structure of the Company and
gearing |
• Repayment of ZDP Shares |
• Dividend levels |
• Currency risk |
• Liquidity risk |
• Market price risk |
• Discount volatility |
• Operational risk |
• Accounting, legal and regulatory
risk |
• Political intervention |
• Industry regulation |
• Geopolitical risk |
• Climate risk |
• Covid-19 risks |
Information on each of these, save for Repayment of ZDP Shares,
is given in the Strategic Report in the Annual Report for the year
ended 31 December 2021. Attention is
further drawn to the new 2025 ZDP Shares’ liability falling due on
28 November 2025, the repayment of
which stands in preference to the entitlements of Ordinary Shares.
A fall in value of the Company’s portfolio around that time could
have a material adverse effect on the value of the Ordinary
Shares.
RELATED PARTY TRANSACTIONS
The Directors are recognised as a related party under the
Listing Rules and during the six months to 30 June 2022 fees paid to Directors of the
Company totalled £37,700 (six months ended 30 June 2021: £34,000 and year to 31 December 2021: £69,000).
GOING CONCERN
The Directors believe that, having considered the Company’s
investment objectives (shown on page 1), risk management policies
and procedures, nature of portfolio and income and expense
projections, the Company has adequate resources, an appropriate
financial structure and suitable management arrangements in place
to continue in operational existence for a period of at least 12
months from the date these financial statements were approved. For
these reasons, they consider that the use of the going concern
basis is appropriate. The risks that the Directors considered most
likely to adversely affect the Company’s available resources over
this period were a significant fall in the valuation or a reduction
in the liquidity of the Company’s investment portfolio.
DIRECTORS’ RESPONSIBILITY
STATEMENT
The Directors are responsible for preparing the Half Year
Report, in accordance with applicable law and regulations. The
Directors confirm that, to the best of their knowledge:
• The condensed set of Financial
Statements within the Half Year Report has been prepared in
accordance with International Accounting Standards in conformity
with the requirements of the Companies Act 2006 and applicable law;
and |
• The Interim Management Report
includes a fair review of the information required by 4.2.7R
(indication of important events during the first six months of the
year) and 4.2.8R (disclosure of related party transactions and
changes therein) of the FCA’s Disclosure and Transparency
Rules. |
For and on behalf of the Board.
Gillian Nott OBE
Chairman
3 August 2022
DIRECTORS AND ADVISERS
Directors
Gillian Nott OBE – Chairman
Melville Trimble – Chairman of
the Audit Committee
Victoria Muir – Chairman of the
Remuneration Committee
Alternative Investment Fund Manager
(“AIFM”)
Premier Portfolio Managers Limited
Eastgate Court
High Street
Guildford
Surrey GU1 3DE
Telephone: 01483 306 090
www.premiermiton.com
Authorised and regulated by the Financial Conduct Authority
(“FCA”)
Investment Manager
Premier Fund Managers Limited
Eastgate Court
High Street
Guildford
Surrey GU1 3DE
Telephone: 01483 306 090
www.premiermiton.com
Authorised and regulated by the
Financial Conduct Authority
Company Secretary and Registered
Office
Link Company Matters Limited
6th Floor
65 Gresham Street
London EC2V 7NQ
pmgr@linkgroup.co.uk
Registrar
Link Group
Central Square
29 Wellington Street
Leeds LS1 4DL
Telephone: 0371 664 0300*
Overseas: +44 (0) 371 664 0391*
E-mail: shareholderenquiries@linkgroup.co.uk
www.signalshares.com
Custodian
The Northern Trust Company
50 Bank Street
Canary Wharf
London E14 5NT
Depositary
Northern Trust Investor Services Limited†
50 Bank Street
Canary Wharf
London E14 5NT
Authorised by the Prudential
Regulation Authority (“PRA”) and regulated by the FCA and PRA.
Auditor
KPMG LLP
15 Canada Square
London E14 5GL
Tax Advisor
Crowe U.K. LLP
55 Ludgate Hill
London EC4M 7JW
Stockbroker
finnCap Capital Markets
One Bartholomew Close
London EC1A 7BL
Telephone: 0207 220 0500
Ordinary Shares
SEDOL: 3353790GB
LSE: PMGR
Zero Dividend Preference Shares
SEDOL: BNG43G3GB
LSE: PMGZ
Global Intermediary Identification Number
GIIN: W6S9MG.00000.LE.826
†Changed 27 November 2021,
previously Northern Trust Global Services SE, UK branch.
*Calls are charged at the standard geographic rate and will
vary by provider. Calls outside the United Kingdom will be charged at the
applicable international rate. The Registrar is open between 09:00
- 17:30 Monday to Friday excluding public hol