Foresight Solar Fund Ltd (LSE:FSFL) investment manager Ross Driver presented at the Proactive One2One Investor Forum about the fund's strategic focus during a period of market uncertainty and elevated interest rates. Ross Driver outlined how the company is delivering strong dividend yields, currently around 11%, while maintaining robust dividend cover of 1.3 times for the year ahead.
Driver explained the fund’s core assets consist of 58 renewable energy projects, mainly in the UK, Spain, and Australia, generating income through a blend of subsidies and power sales. “We are an asset manager, we own the assets and we get the yield from those assets to return to investors,” he stated.
The fund’s strategy includes asset sales to return capital to shareholders, with a recent exit from its Australian portfolio and plans to divest a further 75MW of projects. Foresight Solar Fund has also implemented a £23 million share buyback programme to support value.
The fund is also investing in development-stage solar and battery storage projects, especially in Spain, with a focus on capital-light development that can offer future upside through potential sales. Driver noted that the board is actively exploring options to enhance shareholder value in a market where listed renewable infrastructure funds have traded at discounts to NAV.
