Renewable energy infrastructure funds have had a torrid few years given rising interest rates and inflation, higher discount rates and a fractious political and economic environment. FGEN was arguably already better placed than many given its diversified portfolio – with no offshore wind and a higher volume of baseload power, meaning far less intermittency or storage concerns than a pure wind or solar fund. Its moves into more esoteric growth assets may have raised eyebrows, but with construction completed and production scaling up at the Glasshouse and Rjukan, and continued adoption of biomethane-fuelled trucks providing a ready market for CNG Fuels, these assets have the potential to make a meaningful impact both on FGEN's NAV and its portfolio income. Meanwhile, above-average performance and a dividend yield of almost 11% means investors are getting ‘paid to wait' for the growth investment case to come to fruition.
