12 months ending	Share price TR (%)	NAV total return (%)	Earnings per share (pence)	Adjusted EPS (pence)	Dividend per share (pence)
31/03/2022	7.3	34.1	30.6	7.0	6.80
31/03/2023	12.2	13.1	14.9	6.7	7.14
31/03/2024	(15.8)	(1.8)	(2.1)	7.5	7.57
31/03/2025	(15.9)	0.6	(0.4)	8.6	7.80
31/03/2026	5.4	6.6	5.9	9.4	7.96

Source: Bloomberg, Marten & Co

Fund profile

Further information can be found at FGEN.com

FGEN invests in a diversified portfolio of private infrastructure assets. It aims to deliver stable returns, predictable long-term income and growth, while supporting decarbonisation and more sustainable use of resources.

FGEN invests across three main areas of environmental infrastructure: renewable energy generation, other energy infrastructure, and sustainable resource management. Renewable energy generation includes wind, solar, anaerobic digestion, biomass, energy from waste and hydropower. Other energy infrastructure includes battery storage and low-carbon transport. Sustainable resource management includes wastewater, waste processing and more sustainable food production, such as controlled-environment agri- and aquaculture projects.

The portfolio is diversified across sectors, technologies and geographies, which helps reduce reliance on any one weather pattern and differentiates FGEN from peers.

FGEN can also invest in newer areas of environmental infrastructure where they are mature enough and have strong infrastructure characteristics. The AIFM is Foresight Group LLP. Foresight had £13.0bn of assets under management (AUM) at 31 March 2026, including Foresight Solar Fund, which is in FGEN’s peer group. Its global infrastructure team includes 185 infrastructure professionals managing around 5.0GW of energy infrastructure, with offices in seven countries. The co-lead managers for FGEN are Edward Mountney and Charlie Wright.

Market backdrop

Government policy changes weighed on sentiment towards renewable energy infrastructure sector

The recent pace of government policy changes has increased uncertainty in the UK renewable energy infrastructure sector and weighed on investor sentiment. In April, the inflation measure used for existing clean energy incentives under the renewables obligation (RO) and feed-in-tariffs (FIT) moved to CPI from the historically higher RPI.

The Carbon Price Support mechanism (CPS) will be abolished from April 2028. This is expected to reduce the marginal cost of gas-fired generation, which typically sets UK wholesale power prices, leading to lower long-term power price forecasts.

After a spike in fuel prices linked to the conflict in the Middle East, the government extended and increased the Electricity Generator Levy (EGL). The tax rate on exceptional generation receipts from UK-based electricity generators rose from 45% to 55% from 1 July, and the levy will run beyond its previous end date of 31 March 2028.

FGEN’s diverse portfolio has shielded it from worst of policy impact

Due to FGEN’s diversified portfolio, the impact of these policy changes on its NAV has been small, especially compared with pure-play renewable peers. Less than 30% of portfolio revenue is subject to RO and FIT incentives, so the change to CPI inflation linkage reduced NAV by just 0.5p per share, or 0.5%. The removal of the CPS was already reflected in FGEN’s 2026 valuation and reduced NAV by 0.4p.

FGEN’s manager is not forecasting any extra payments from the EGL extension. While some assets are still earning above the benchmark price, the manager does not expect this to go beyond the £10m de minimis level.

This supports the case for diversification and is reflected in FGEN’s NAV and share price outperformance versus its peer group (see page 14).

Under a likely Burnham premiership, FGEN’s manager expects policy to remain supportive for renewables, grid investment, energy security and regional infrastructure. If there is any shift, the manager believes it is more likely in regulated utilities, where public control, affordability and returns may face greater scrutiny, affecting ownership models more than decarbonisation targets. FGEN should not be materially impacted given its limited exposure to UK regulated utility assets, no reliance on a single policy framework, and a diversified portfolio across renewable generation, energy infrastructure and sustainable resource management, with revenues supported by contracted, subsidised and diversified merchant streams.

Annual results

FGEN reported NAV of £655.5m, or 105.2p per share, at 31 March 2026, down 1.2% over the year. Including dividends of 7.96p, NAV total return was 6.2% for the year.

Figure 1: FGEN portfolio valuation in £m, as at 31 March 2026

Dividend comfortably covered by portfolio cash flows

Distributions received from projects over the year were £78.6m (2025: £90.4m). The lower revenue versus the previous year was mainly due to projects rolling off of higher power price fixes agreed after the Ukraine conflict, and by some downtime across the biomass and food waste AD parts of the portfolio. Dividend cover remained comfortable at 1.25x. The portfolio value fell by £6.6m over the year, as shown in Figure 1.

Drivers of portfolio returns

Several factors affected FGEN’s NAV. We set out these drivers and their sensitivities below, starting with power prices.

Power prices

Power prices spiked in March due to the conflict in the Middle East, as shown in Figure 2. However, lower forecasts for future electricity and gas prices compared with those at 31 March 2025 reduced FGEN’s NAV by £12.2m. This has also contributed to falling NAVs among FGEN’s peers, but FGEN’s diversified portfolio makes it less sensitive.

Figure 2: UK power prices

Updated forecasts reflect the expected impact of abolishing the Carbon Price Support mechanism. This change was included in FGEN’s 2026 valuation and reduced NAV by £2.3m (0.4p per share).

Fixed prices secured on the majority of portfolio

FGEN aims to fix prices for most of its output to reduce exposure to volatile market prices. At 31 March 2026, the portfolio had secured price fixes of 80% for Summer 2026, 70% for Winter 2026/27, and 17% for Summer 2027.

Over the life of the assets, a 10% rise in electricity and gas prices would add £36.2m (5.8p) to NAV, while a 10% fall would reduce NAV by £36.3m (5.8p).

FGEN’s manager says that if electricity prices fall to £50/MWh (from around £110/MWh) and gas prices fall by a similar amount, the company would still have resilient dividend cover for the next three financial years.

Inflation

Short-term RPI inflation assumptions raised 50bps

Inflation assumptions used to value FGEN’s portfolio at 31 March 2026, based on actual data and independent forecasts, were raised by 50bps. The assumptions were 4.0% RPI inflation for 2026, 3.0% until 2030 and 2.25% thereafter. This increased NAV by £7.7m.

From 1 April 2026, the inflation measure on RO and FIT contracts switched to CPI. FGEN’s CPI assumptions were 3.0% in 2026, 2.5% to 2030 and 2.25% thereafter. CPI was 2.8% at the end of May 2026. Figure 3 shows RPI and CPI inflation over the past five years.

Figure 3: UK RPI and CPI year-on-year (%)

Changes to RO and FIT indexation were included in FGEN’s March 2026 valuation and reduced NAV by £3.1m, or 0.5p per share.

If inflation is 0.5% below FGEN’s base case, the portfolio valuation would fall by £13.5m (2.2p per share). If inflation is 0.5% higher, the valuation would rise by £13.9m (2.2p per share).

Anaerobic digestion life extension

We previously outlined the potential to extend the lives of FGEN’s anaerobic digestion (AD) assets. These assets were being valued conservatively over the 20-year life of the Renewable Heat Incentive (RHI) subsidy they receive. However, growing evidence in Europe and the UK, including several market transactions, supports valuing AD facilities beyond the end of the tariffs, and potentially into perpetuity. With an independent consultant, FGEN modelled future revenues from sources including corporate offtakes, green certificates and/or lower levels of government support.

FGEN extended the lives of seven AD assets

FGEN recognised an £8.7m (1.4p per share) NAV uplift from extending the lives of seven of its 11 AD assets, which the manager believes have the strongest extension potential. These are mainly waste-based AD assets that have greater sustainability credentials than agricultural AD, which could make it more attractive to corporate offtakers and help it access greater government support.

The manager says it used conservative assumptions. Valuations were based on regulated market drivers and excluded any additional voluntary green premiums that may emerge over time.

Some clarity is still needed on biomethane’s role in the UK’s wider net zero and energy transition plans, as the government develops a biomethane policy framework. However, the manager says government recognises and supports biomethane’s role in decarbonising hard-to-abate sectors.

A specialist independent consultant is assessing the remaining ADs in the portfolio before any extensions and valuation uplifts are applied.

Discount rates

Figure 4: Long-term (10-year and 30-year) UK gilt yields

The weighted average discount rate now sits at 9.9%

UK gilt yields remain elevated, as shown in Figure 4. There were no macro-driven changes to discount rates, but there were project-specific changes linked to AD life extension and progress in growth assets. FGEN’s weighted average discount rate edged up to 9.9% from 9.7%, mainly due to continued investment in growth assets and higher values. There was no change to NAV from the discount rate.

A 0.5% reduction in the discount rate would increase value by £23.1m, or 3.7p per share. A 0.5% rise would reduce the portfolio valuation by £21.2m, or 3.4p per share.

Investment process

Foresight selects projects based on their risk-return profile and how well they fit its investment policy, within a limited set of investment restrictions. New assets are acquired mainly through secondary market transactions with third parties.

The AIFM aims to maintain a balanced, diversified portfolio and takes a cautious approach. While FGEN can invest across all OECD countries, the portfolio is still mostly UK-focused, with modest exposure to mainland Europe via Norway and Italy. The managers prefer jurisdictions and regulatory or subsidy regimes they know well, or where they have established partner relationships.

Investment restrictions

• No more than 25% of the portfolio may be invested in assets that are under construction or not yet operational. Within this, up to 5% may be invested in development-stage assets.

• At least 50% of the portfolio must be invested in the UK, with the remainder invested in other OECD countries.

• No new investment may exceed 30% of NAV, or 25% of NAV based on acquisition cost, taking existing holdings into account.

Purchases from third parties

Deals can be introduced by the wider Foresight team

Opportunities are sourced through project developers, specialist consultancy firms and the wider Foresight team. Acquisition prices are negotiated on an arm’s-length basis, based on the managers’ assessment of each project’s risks, expected returns and capital structure.

ESG assessment

Previously, Foresight’s due diligence was built around its proprietary Sustainability Evaluation Tool (SET). The SET brought together a wide range of sustainability frameworks to assess material sustainability and ESG factors for new and existing investments, while reflecting different investor preferences. As investor and sustainability expectations have converged around fewer common frameworks, Foresight has updated its approach. The SET has been redesigned mainly as a portfolio management tool, while pre-investment due diligence and ongoing ESG monitoring will be aligned with regulatory requirements and three core frameworks: the SASB Standards, Paris Agreement alignment, and the EU Taxonomy.

To strengthen internal capabilities, the division is piloting a geospatial risk platform developed with Frontierra, which provides location-based insights into climate- and nature-related risks and opportunities. The platform moved into initial testing and implementation across infrastructure, investment, and portfolio management teams during FY2026. FGEN also obtained third-party assurance over key sustainability metrics in line with ISAE 3000 and plans to repeat this annually, in line with sustainability reporting best practice.

Ongoing management

Day-to-day facilities management, operations and maintenance are usually outsourced. The managers oversee these contracts, approve payments, identify ways to improve efficiency and capacity, and optimise project SPV financial structures.

Disposals

FGEN usually holds investments for the long term, but may sell when the managers believe the price is attractive or there are other strong reasons to do so.

Hedging

The managers may hedge non-sterling currency exposure and risks linked to interest rates, inflation, power prices and commodity prices. All hedging decisions are at the board’s discretion.

Sustainability

FGEN’s strategy delivers clear environmental benefits. The company discloses voluntarily under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR) and has a sustainable investment objective. While, as a Guernsey company, it sits outside the UK Sustainability Disclosure Requirements (SDR) and labels, it aligns voluntarily with the SDR Sustainability Focus label and publishes the relevant disclosures.

In the year ended 31 March 2026, the portfolio generated 1,338GWh of renewable energy (2025: 1,272GWh), treated more than 35.8bn litres of wastewater (2025: 34.7bn litres) and diverted more than 653,464 tonnes of waste from landfill (2025: 703,470 tonnes).

During FY2026, avoided GHG emissions totalled 223,140 tCO2e, while total portfolio emissions (Scope 1, 2 and 3) were 128,308 tCO2e.

Foresight Group is a signatory to the United Nations Principles for Responsible Investment (UNPRI). In FY2026, it received five-star ratings for the Policy, Governance and Strategy module and the Infrastructure division. ESG analysis is built into FGEN’s investment process and ongoing portfolio monitoring, with more detail in the ESG section above.

Asset allocation

FGEN has one of the most diverse portfolios among its renewable energy infrastructure peers, currently invested in 10 sectors across 39 projects. The manager groups the portfolio into three main environmental infrastructure pillars: renewable energy generation (71% of the portfolio, including wind, solar, AD, biomass, energy from waste and hydropower); other energy infrastructure (11% – energy storage and low-carbon transport assets) and sustainable resource management (18% – waste and water management assets, plus controlled environment assets).

Figure 5: Portfolio value split by sector, as at 31 March 2026

Figure 6: Portfolio split by remaining asset life as at 31 March 2026

Figure 5 shows FGEN’s portfolio by project type as at 31 March 2026. The weighted average remaining asset life rose to 18.5 years from 16.2 years, after extending the lives of some AD assets, as noted earlier. Most of the portfolio is in the UK (90%), with the remaining 10% in Italy and Norway.

Figure 7: Portfolio split by operational status as at 31 March 2026

Figure 8: Net present value of future revenues by type as at 31 March 2026

FGEN’s construction exposure has fallen below 1%, as early-stage assets, including the Rjukan project, move into the operational phase.

The 10 largest assets account for 56% of total portfolio value. Figure 9 shows the portfolio at 31 March 2026. Exposure is well spread, with no single asset making up more than 10% of the portfolio.

Figure 9: FGEN portfolio¹ of projects by type, as at 31 March 2026

Asset	Location	Type	Ownership	Capacity(MW)	Commercial operations date
Renewable energy generation
Bilsthorpe	UK (Eng)	Wind	100%	10.2	Mar 2013
Burton Wold Extension	UK (Eng)	Wind	100%	14.4	Sep 2014
Carscreugh	UK (Scot)	Wind	100%	15.3	Jun 2014
Castle Pill	UK (Wal)	Wind	100%	3.2	Oct 2009
Dungavel	UK (Scot)	Wind	100%	26.0	Oct 2015
Ferndale	UK (Wal)	Wind	100%	6.4	Sep 2011
Hall Farm	UK (Eng)	Wind	100%	24.6	Apr 2013
Llynfi Afan	UK (Wal)	Wind	100%	24.0	Mar 2017
Moel Moelogan	UK (Wal)	Wind	100%	14.3	Jan 2003 & Sep 2008
New Albion	UK (Eng)	Wind	100%	14.4	Jan 2016
Wear Point	UK (Wal)	Wind	100%	8.2	Jun 2014
Biogas Meden	UK (Eng)	Anaerobic digestion	49%	5.3	Mar 2016
Egmere Energy	UK (Eng)	Anaerobic digestion	49%	6.3	Nov 2014
Grange Farm	UK (Eng)	Anaerobic digestion	49%	6.3	Sep 2014
Icknield Farm	UK (Eng)	Anaerobic digestion	53%	7.4	Dec 2014
Merlin Renewables	UK (Eng)	Anaerobic digestion	49%	6.3	Dec 2013
Peacehill Farm	UK (Scot)	Anaerobic digestion	49%	6.8	Dec 2015
Rainworth Energy	UK (Eng)	Anaerobic digestion	100%	2.2	Sep 2016
Vulcan Renewables	UK (Eng)	Anaerobic digestion	49%	12.6	Oct 2013
Warren Energy	UK (Eng)	Anaerobic digestion	49%	6.3	Dec 2015
Amber	UK (Eng)	Solar	100%	9.8	Jul 2012
Branden	UK (Eng)	Solar	100%	14.7	Jul 2013
CSGH	UK (Eng)	Solar	100%	33.5	Mar 2014 & Mar 2015
Monksham	UK (Eng)	Solar	100%	10.7	Mar 2014
Pylle Southern	UK (Eng)	Solar	100%	5.0	Dec 2015
Codford Biogas	UK (Eng)	Waste anaerobic digestion	100%	3.8	2014
Bio Collectors	UK (Eng)	Waste anaerobic digestion	100%	11.7	Dec 2013
Cramlington Renewable Energy Developments	UK (Eng)	Biomass combined heat and power	100%	32.0	2018
Energie Tecnologie Ambiente (ETA)	Italy	Energy-from-waste	45%	16.8	2012
Northern Hydropower	UK (Eng)	Hydropower	100%	2.0	Oct 2011 & Oct 2017
Yorkshire Hydropower	UK (Eng)	Hydropower	100%	1.8	Oct 2015 & Nov 2016
Other energy infrastructure
West Gourdie	UK (Scot)	Battery storage	100%	50.0	May 2023
Clayfords	UK (Scot)	Battery storage	50%	50.0	Pre-construction
Sandridge	UK (Eng)	Battery storage	50%	50.0	Dec 2025
Asset	Location	Type	Ownership	Capacity(MW)	Commercial operations date
CNG Fuels	UK (Eng)	Low carbon transport	Minority2	n/a	Various
Sustainable resource management
Glasshouse	UK (Eng)	Controlled environment	10%	n/a	Mar 2025
Rjukan	Norway	Controlled environment	25%	n/a	Aug 2025
ELWA	UK (Eng)	Waste management	80%	n/a	2006
Tay	UK (Scot)	Wastewater treatment	33%	n/a	Nov 2001

The waste management and wastewater treatment assets, East London Waste Authority and Tay, are under PFI contracts that are nearing the end of their concession periods. Some public authorities have tried to withhold final unitary payments or retain funds in the structure, but FGEN’s manager says there are currently no signs that handover risk will materialise. This is partly because these older PFI contracts have fewer handback conditions than later contracts.

For East London Waste Authority, which is due to hand back by end-2027, the debt has been fully repaid. FGEN expects to start taking surplus cash of around £30m-£40m out of the project over the next two years.

FGEN’s two controlled environment projects are now operational and ramping up. The Glasshouse is increasing commercial activity and Rjukan is producing and harvesting trout. FGEN’s other growth asset, CNG Fuels, continues to scale its renewable biomethane platform.

FGEN has said it could sell these assets over the medium term once operations have fully ramped up, depending on value and timing. The manager says any proceeds would be reinvested into new environmental infrastructure opportunities that balance income, growth and risk. FGEN does not expect to make further standalone controlled-environment investments, as it plans to keep a more disciplined focus on core environmental infrastructure.

Any new investment would aim to have the features of traditional infrastructure, including inflation linkage, high barriers to entry, stable cash flows, and predictable output. The manager says these characteristics matter more than the specific sector.

Portfolio activity

FGEN made no acquisitions or disposals since our last note in December. However, it made several follow-on investments, including in carbon capture across three AD assets, further investment in the pressure reduction system at the Vulcan AD, and a debt investment in CNG Fuels.

Distributions from FGEN’s portfolio were £78.6m over the year to 31 March 2026, 2.9% (or £2.3m) below budget. The company expects to recover around £4.2m through contractual compensation mechanisms. Solar and wind assets were 10.0% and 12.5% below target respectively, while AD assets were 19.0% above budget.

FGEN’s largest asset, the Cramlington biomass scheme (9% of portfolio value), generated 25.2% below target. This was mainly due to a six-week extension to a planned outage in July and recurring boiler issues. Expected compensation reduces the shortfall to 15.7%. Following remediation works, FGEN’s manager says plant reliability and availability has improved materially, with performance exceeding budget since March.

Performance

FGEN’s NAV returns have improved over the past year as organic growth across the portfolio has started to lift valuations. This follows three largely flat years, as the sector faced significant headwinds.

Figure 10: FGEN NAV TR over five years to 30 June 2026

Figure 11: FGEN cumulative performance to 30 June 2026

	3 months (%)	6 months (%)	1 year (%)	3 years (%)	5 years (%)
FGEN NAV total return	0.0	2.5	6.5	5.5	50.9
FGEN share price total return	28.2	36.2	17.9	6.4	27.2

Peer group

Figure 12: AIC renewable energy infrastructure sector comparison table, as at 15 July 2026

	Market cap (£m)	Premium/(discount) (%)	Yield(%)	Ongoing charge (%)	1 yr NAV TR (%)	3 yr NAV TR (%)	5 yr NAV TR (%)	10 yr NAV TR (%)
FGEN	530	(19.3)	9.4	1.11	8.6	2.3	9.0	7.7
Aquila European Renewables Income	53	(63.6)	31.3	1.20	(23.0)	(14.8)	(6.4)	–
Bluefield Solar Income	546	(11.8)	9.7	1.02	(2.8)	(2.6)	4.9	7.6
Ecofin US Renewables Infrastructure	15	(50.6)	0.0	2.30	(7.1)	(26.0)	(14.6)	–
Foresight Solar	387	(28.6)	11.4	1.15	(1.1)	0.7	7.2	6.6
Gore Street Energy Storage Fund	249	(43.2)	8.1	1.38	(10.6)	(3.6)	3.1	–
Greencoat Renewables	683	(26.0)	9.2	1.18	3.6	3.1	6.3	–
Greencoat UK Wind	2,235	(23.0)	10.3	0.83	0.8	(0.4)	8.0	9.0
Gresham House Energy Storage	544	(16.6)	0.4	1.16	6.5	(6.7)	3.6	–
NextEnergy Solar	275	(37.4)	17.6	1.17	(8.7)	(3.4)	2.6	4.4
Octopus Renewables Infrastructure	331	(33.0)	10.0	1.22	(0.2)	1.0	4.8	–
SDCL Efficiency Income	422	(50.2)	16.4	1.05	(11.5)	(3.3)	(0.0)	–
The Renewables Infrastructure Group	1,711	(29.9)	10.3	0.94	3.3	(1.7)	4.2	7.0
US Solar Fund	82	(42.6)	6.3	1.61	(0.8)	(6.4)	(2.6)	–
VH Global Energy Infrastructure	291	(29.3)	7.9	1.50	7.4	2.9	5.7	–
Peer group median	387	(29.9)	9.7	1.17	(0.8)	(2.6)	4.2	7.3
FGEN rank	6/15	3/15	9/15	5/15	1/15	3/15	1/15	2/6

You can access up-to-date information on FGEN and its peers on the QuotedData website.

FGEN has one of the broadest remits of the 15 companies that comprise the members of the AIC’s renewable energy infrastructure sector. Most of these funds are focused on solar or wind or some combination of the two. Two of these funds are focused solely on energy storage. There is variation of geographic exposure within the peer group too, with a number of funds that are heavily exposed to the North American market (which has a different risk/reward structure).

The sector has continued to shrink, mainly through private takeovers that have taken advantage of wide discounts, or through managed wind-downs. Since our last note, the sector has lost Aquila Energy Efficiency and Hydrogen Capital Growth to managed wind-downs. Bluefield Solar Income’s board has recommended a sale to Drax Group, and US Solar Fund has received a bid for its portfolio. NextEnergy Solar has put itself up for sale, and Aquila European Renewables Income remains in a managed wind-down.

A proposed merger of The Renewables Infrastructure Group with InfraRed Capital stablemate HICL Infrastructure was dropped last year after shareholder opposition. TRIG passed a continuation vote at the end of June 2026.

FGEN is one of the larger funds in this peer group. Its discount is among the narrowest, reflecting the strength of its diversified portfolio. Its dividend yield is attractive, with 1.25x coverage. Following a management fee cut, its ongoing charges ratio is now among the most competitive in the peer group. Its NAV returns are also among the highest across all time periods.

Dividend

FGEN has a progressive dividend policy and has increased its dividend every year since launch. For the year ended 31 March 2026, it declared a dividend of 7.96p, up 2.1% from 7.80p in 2025, and this was covered 1.25x by net portfolio cash flows. The board is targeting a total dividend of 8.04p for the 2027 financial year, a 1.0% increase, and expects this to be comfortably covered by cash flows.

Figure 13: FGEN five-year dividend history, pence per share

Premium/(discount)

FGEN’s discount had been narrowing from the all-time lows that followed government proposals to bring forward the change in the inflation measure for incentives to the end of 2025.

Over the year to 30 June 2026, FGEN’s shares traded at a 16.0% to 40.9% discount to NAV, averaging 29.5%. As at 14 July 2026, the discount was 17.5%.

The company again faces a continuation vote at its AGM in September because its discount averaged more than 10% over FY2026. Shareholders have strongly backed continuation in the past two years and the board is confident of the same outcome. We believe the company should continue.

Figure 14: FGEN premium/(discount) (%) over five years to 30 June 2026

Fees and costs

FGEN’s ongoing charges ratio for the year ended 31 March 2026 was 1.11% (2025: 1.24%). The board expects this to fall to 1.05% for FY2027, assuming no change in NAV and reflecting the full benefit of a lower investment management fee.

The investment management fee was reduced in October 2025. It is now calculated 50% on NAV and 50% on market capitalisation, capped at NAV, replacing a tiered NAV-based structure. This cut the fee from £7.2m in 2025 to £5.8m in 2026. There is no performance fee, and the manager’s contract can be terminated with one year’s notice.

For the year ended 31 March 2026, directors’ fees and expenses were £314,000 (2025: £327,000) and the administration fee was around £110,000 (2025: £124,000).

Capital structure

FGEN has 623,338,335 ordinary shares in issue and 38,192,894 shares held in treasury as at 15 July 2026.

FGEN has an indefinite life, but a continuation vote may be triggered if its shares trade at a discount of more than 10% for a prolonged period, as was the case in the 2024, 2025 and 2026 financial years. The company’s financial year end is 31 March, and AGMs are typically held in August or September.

Borrowings

FGEN has a £150m multi-currency revolving credit facility that was £123.1m drawn at 31 March 2026. In April, it agreed a one-year extension and activated a £15m accordion facility, giving extra headroom to fund existing portfolio commitments.

The facility is provided by National Australia Bank, Royal Bank of Scotland International, ING, HSBC, and Clydesdale Bank, and matures in June 2028.

Interest is SONIA for sterling drawdowns and EURIBOR for euro drawdowns, plus 210 basis points (bps – equivalent of 2.1%). The margin can move up or down by 5bps depending on progress against agreed sustainability targets:

Environmental: increase coverage of independent biodiversity assessments and implement initiatives to enhance biodiversity net gain across the portfolio;

Social: increased volume of contributions to local communities; and

Governance: maintaining a low number of work-related accidents, as defined under the Reporting of Injuries, Diseases and Dangerous Occurrences (RIDDORS) by the Health and Safety Executive.

At project level, FGEN is limited to a maximum of 65% gearing on gross project value for renewable generation projects and 85% for PFI/PPP projects. In practice, gearing is well below these limits: at 31 March 2026, project-level gearing was 16.1%. Including the drawn revolving credit facility, FGEN’s gearing ratio was 28.8% at 31 March 2026.

Major shareholders

FGEN’s largest shareholders at 31 March 2026 were Hargreaves Lansdown (8.36%), Interactive Investor (6.39%) and Gravis Capital Management (6.26%).

Lead managers

Edward Mountney

Edward has been with FGEN since 2016 and joined the senior management team in 2022. Previously, he was head of valuations at Foresight Group and John Laing Capital Management. He has over 15 years’ experience in infrastructure and renewables and is a member of the Institute of Chartered Accountants in England and Wales. He holds a BA (Hons) in Business and Management from Oxford Brookes University.

Charlie Wright

Charlie joined Foresight Group in 2017 and recently joined FGEN’s senior management team. He has over 19 years’ experience in infrastructure and renewables as an adviser, equity investor and project director, and has led investments across Europe. He previously worked at John Laing Group and KPMG. Charlie has a BA in History from Exeter University and holds ICAEW and CISI Diplomas in Corporate Finance.

Board

FGEN’s board has five directors. All are non-executive and considered independent of the investment manager.

Chair Ed Warner will step down at the AGM in September and will be replaced by the current senior independent director, Stephanie Coxon. Alan Bates will become senior independent director, and a search is underway for a new director.

Figure 15: Board members – length of service and shareholdings

Director	Position	Date of appointment	Length of service (years)	Annual fee (GBP)	Shareholding
Ed Warner	Chair	2 August 2022	3.9	85,000	75,000
Stephanie Coxon	Audit committee chair	11 June 2020	6.0	65,500	65,000
Alan Bates	Risk committee chair	10 June 2021	5.0	55,500	25,000
Jo Harrison	ESG committee chair	10 June 2021	5.0	55,500	8,066
Nadia Sood	Director	10 February 2023	3.4	53,000	6,796

Ed Warner

Ed has extensive financial services experience from senior roles at investment banks and financial institutions including IFX Group, Old Mutual, NatWest Markets and Dresdner Kleinwort Benson. He also has significant investment trust experience, having chaired Standard Life Private Equity Trust Plc and BlackRock Energy and Resources Income Trust Plc, and is currently chair of HarbourVest Global Private Equity. He has also previously been chair of Air Partner Plc and a non-executive director and interim chair of Clarkson Plc.

Stephanie Coxon

Stephanie is a fellow of the Institute of Chartered Accountants in England and Wales and a non-executive director of several London-listed companies. She previously led PwC’s investment trust capital markets team for the UK and Channel Islands, advising FTSE 250 and premium London-listed companies on accounting, corporate governance, risk management and strategy.

Alan Bates

Alan has over 33 years’ experience across energy and infrastructure, including electricity, gas and water utilities. He has advised the government of Guernsey on energy policy and has worked in marine engineering and the oil and gas sector, including roles at Mobil Oil/BP Oil and International Energy Group. He later became managing director of Manx Gas and is now CEO of Guernsey Electricity, and a director of Channel Islands Electricity Grid and Alderney Electricity Limited. He is a Chartered Engineer, a Fellow of the Institute of Mechanical Engineers and a Member of the Institute of Engineering Technology.

Jo Harrison

Jo has over 25 years’ experience in the water industry and is director of strategic planning and sustainability at United Utilities. She leads environmental and long-term planning, including climate change and carbon, asset strategy, risk and resilience. She is a chartered member of the Institute of Water and Environmental Managers, a Chartered Environmentalist, and a trustee of the Rivers Trust.

Nadia Sood

Nadia has extensive experience managing complex infrastructure investments, including renewable energy portfolios worth billions of dollars across multiple countries. She has served as a director on the boards of more than 20 privately owned companies. Nadia is CEO of CreditEnable and a member of the IFC/World Bank SME Finance Forum. She holds degrees from Georgetown University and Columbia University, and is fluent in English, French and Norwegian.

SWOT analysis and bull vs bear case

Figure 16: SWOT analysis for FGEN

Strengths	Weaknesses
Highly diversified portfolio.	Sensitive to market sentiment and interest rate volatility.
Continued robust revenues from core portfolio.
Progressive dividends, with comfortable coverage by income.
Opportunities	Threats
Valuation uplifts from growth assets moving to fully operational.	Further unfavourable policy changes.
Further life extensions across portfolio.

Figure 17: Bull vs bear case for FGEN

Aspect	Bull case	Bear case
Performance	Capital appreciation of growth assets as operations ramp up. Core portfolio continues to produce strong cash flows.	Growth assets take longer than anticipated to become fully operational. Energy prices dive, impacting income streams.
Dividends	Progressive dividend since launch, which the board are committed to continuing.	Increases potentially not sustainable if conditions change.
Outlook	Structural increase in renewable energy demand looks set to continue.	Government scales back climate commitments.
Discount	FGEN’s discount could narrow further as interest rates subside and sentiment towards the sector turns positive.	The discount could widen due to detrimental government proposals.

Previous publications

You can read our previous notes on FGEN by clicking on them below or by visiting our website.

Figure 18: QuotedData’s previously published notes on FGEN

Title	Note type	Date
Diverse renewables exposure	Initiation	6 September 2017
Anaerobic diversification	Update	6 March 2018
Diversification benefits shine through	Annual overview	12 September 2018
Life extensions to boost NAV?	Update	15 March 2019
Battery storage potential	Annual overview	9 September 2019
Reliable source of income	Update	14 May 2020
Increasingly diversified as green-led recovery looms	Annual overview	16 February 2021
On the front foot	Update	4 August 2021
It’s all about renewables	Annual overview	29 March 2022
Further portfolio diversification	Update	29 September 2022
Laying the foundations for NAV growth	Annual overview	31 March 2023
Backing the green hydrogen revolution	Update	28 November 2023
Vote against discontinuation	Annual overview	17 July 2024
Looking to bounce back	Update	3 December 2024
Strategic refresh	Annual overview	21 July 2025
Pushing on despite regulatory upheaval	Update	17 December 2025

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