Premier Miton Global Renewables Trust - Deep dive on developers

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 structure

Premier Miton Global Renewables Trust - Potential for real return

Renewable energy investment trusts are out of fashion at present and, in our view, this represents an opportunity for investors. Premier Miton Global Renewables Trusts (PMGR), like all its peers, is now trading at a discount to NAV (14.3%) as its performance has been affected by the underperformance of many of its key public holdings. In our view, short-term energy price weakness and questions over the policy environment are missing the longer-term shift in competitiveness and energy security th

Premier Miton Global Renewables Trust - Positioned for sector rebound

The imposition of additional taxes on energy companies by UK and European governments in the last quarter of 2022, together with accompanying anticipation, resulted in a very volatile year for the listed renewables sector. Reflecting uncertainty in 2022, Premier Miton Global Renewables Trust’s (PMGR’s) performance has also been volatile. During the last 12 months, the NAV total return was -8.4%, further depressed by exposure to China, now reduced to 3.1% of the portfolio (at end February 2023).

Premier Miton Global Renewables Trust - Compounding over the years

Since its launch in March 2012 to end-September 2022, Premier Miton Global Renewables Trust’s (PMGR) share price has returned over 250%. During the past 12 months the performance has been very volatile, and the manager, James Smith, has responded by restructuring the portfolio away from Chinese holdings towards higher-yielding UK and European companies. Smith believes that as energy security concerns will result in governments and companies signing long-term contracts with renewable energy produ

Premier Miton Global Renewables (PMGR): Diversified income and growth from renewable energy listed equities

A decade at the helm

Portfolio manager James Smith is fast approaching a decade at the helm of running Premier Miton Global Renewables Trust (PMGR LN). Over the past decade, the fund has changed its mandate from energy & water utilities, to a global infrastructure in 2017, and in late 2020 to a global renewables focus. Gearing has been relatively high at c50% during points in this cycle, but has now reduced to a more modest amount of c28% following the smaller ZDP rollover in November 2020. Over his tenure, James ha

Premier Miton Global Renewables Trust - Refreshed mandate continues to prove its worth

Premier Miton Global Renewables Trust (PMGR) has reported a strong performance for FY21 (to 31 December), with NAV and share price total returns of 19.8% and 30.7% respectively, compared with a 22.5% decline in its new benchmark, the S&P Global Clean Energy Index. The divergence is largely down to PMGR’s greater exposure to generation and distribution, in a year when capital goods and technology companies struggled against a backdrop of higher input costs and deteriorating investor sentiment. Ma

Premier Miton Global Renewables Trust - Are higher power prices here to stay?

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 trans

Premier Miton Global Renewables Trust - On the crest of a renewable energy wave

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

Renewed focus

Following on from an exceptional year of performance for the ordinary shareholders of Premier Global Infrastructure Trust (PGIT) in 2019, the trust had a good start in 2020. Whilst it suffered heavily in the pandemic-related market crash, it has bounced back strongly (in both cases the moves were amplified by the gearing effect of PGIT’s split capital structure). By the end of July, it had recovered the lost ground, and has seen further gains in August. This is important as 2020 is a seminal yea

Renewed focus

Following on from an exceptional year of performance for the ordinary shareholders of Premier Global Infrastructure Trust (PGIT) in 2019, the trust had a good start in 2020. Whilst it suffered heavily in the market rout, it has bounced back strongly (in both cases the moves were amplified by PGIT’s significant gearing). By the end of July, it had recovered the lost ground, and has seen further gains in August. This is important as 2020 is a seminal year for PGIT.

Don’t stop me now

A much-improved 2019, helped by lower interest rate expectations, translated into 38.3% gains for Premier Global Infrastructure Trust (PGIT) ordinary shareholders. Before the covid-19 panic caused markets to stumble, PGIT was having a strong start to 2020 as well, with the shares hitting 147p on 21 February.

Strong income growth

Aided by the significant gearing provided by its ZDP shares, Premier Global Infrastructure Trust’s (PGIT’s) ordinary shares have provided an NAV total return of 34.4% during the last 12 months.

Strong income growth

The returns have been achieved despite PGIT having a significant allocation to Asia, and particularly China, which has faced a headwind from its trade dispute with the US. While the share prices of Asian growth equities struggled, underlying performance was nonetheless strong. PGIT’s managers believe that there is the prospect for these stocks to re-rate when markets are less focused on the big picture and more on fundamentals of the individual companies.