Downing Renewables and Infrastructure Trust aims to provide investors with an attractive and sustainable level of income returns, with an element of capital growth, by investing in a diversified portfolio of renewable energy and infrastructure assets located in the UK, Ireland and Northern Europe.
The investment manager believes that by investing in a range of renewable energy sources, DORE can reduce the seasonal volatility of revenues and reduce dependency on any single technology to provide more consistent income. There may also be some investments in other infrastructure, whose principle revenues are not derived from energy generation. In addition, diversifying the portfolio geographically should help reduce the portfolio’s regulatory and political risk.
The portfolio will also blend operational projects with projects under construction. The manager says that investment in construction-phase projects offers the potential for higher returns. The amount invested in construction-ready assets or assets under construction will be limited to 35% of gross asset value, as construction projects tend to have more risk associated with them.
We wrote an IPO note to explain what the fund was trying to achieve which was published in November 2020
Since then we have published a number of notes on the trust.
An update note – Ahead of expectations – on 4 August 2021, which covered the trust’s progress since IPO
An annual overview note – Proving its mettle – on 24 May 2022, which reported on the trust’s decent performance and robust pipeline
An annual overview note – Powering ahead – on 14 November 2023, which discussed the opportunity to add value in the trust’s hydropower portfolio
An annual overview note Fundamental story to drive returns – on 17 May 2024, looked at why we felt the company’s success was not being reflected in its share price
You can access the fund’s website here
You can view our interviews with the company’s Fund Managers below:
18th March 2022: Tom Moore & Henrik Dahlström – Weekly Show