Ecofin Global Utilities ... Share Discussion Threads

[mrscruff] 04/3/2024 12:17

daveoz13 instead of underlining holdings you could simply buy and infra and utilise global index INFR and I think JXI.

I don't know much about the other trusts, but they appear "niche" and concentrated risk without diversification. I am sure those may recover but they are not the same as EGL, INFR, INPP...

[daveoz1] 03/3/2024 17:12

Thanks MrScruff, thank goodness there are optimistic guys like you around, I do need cheering up at times! I am probably overinvested in this sector, and I can't see me buying the underlying holdings if EGL closes down. I did get fed up with another investment of mine dropping to ridiculous levels (I thought) - Gore Street Energy Storage Fund, GSF, and bought some more. For a while I was patting myself on the back when the share price shot up at the end of December 2023; unfortunately it has now dropped right back down to where it was before. I expect there are several readers here that have had that happen to them. As for DGI9 - no I won't even go there, I'll depress myself again!

[mrscruff] 03/3/2024 12:34

daveoz1 but you would be better off overall. You would be forced to take the loss and with the proceeds you can invest in the underlining holdings such NG, SSE and UKW as well as broaden out and buy the plethora of defensive infrastructure trusts on offer such as INPP and BBGI who have fallen by the same amount. As long as you hold a quality companies and trusts in a similar sector that had fallen (but not fallen too much) and don't go chasing stuff that has risen. You only need to then gain about 5% to make up the loss that is running at over 19% that is harder (but not at all impossible) to recover. 5% could be recovered with dividends but fully expect share prices to rise on rate cuts that speculatively slingshotting you into a potentially higher profit.

I would also be fine if EGL does not close but you can see the attraction of closing at 17-18% now?

EGL was possibly the best contrarian bet on offer under 150p and even today at 154p very compelling. Bring on the rate cuts this year or worse next, we can wait. We are defensive and recession-proof in a sectors like energy where transformation needs to happen.

[daveoz1] 26/2/2024 12:01

MrScruff: Hmmm..as I bought at 189, I don't think I'll bank much of a gain if EGL closes....?!

[mrscruff] 24/2/2024 16:34

I am not so good at posting my sells but I reduced drastically the profit I made buying the last dip. Throughout last week and the the week before I have been adding to EGL in increasing amounts. I suspect a "W" shaped recovery.

19% discount is ridiculous. I have voted against the continuation of the trust not because it is bad trust (it's really good) but I would be happy to bank a 23.4% instant upside from here. 23.4% gain is allot of money to me and I will take it.

I hope others have been buying sub sectors that EGL excludes via INPP, HICL, BBGI, 3IN, PINT... clearly plenty to invest in if EGL close and we bank the gain.

[18bt] 29/1/2024 10:41

Good results from EGL's largest holding by far: Note it is targeting 10% dividend growth
EGL looks good on a discount of 11.4% and yield of nearly 5% and a share repurchase scheme in operation.

[speedsgh] 20/12/2023 16:46

~ FY24 dividend target 8.20p/2.05p per qtr (+6.5%)

~ 5-yearly continuation vote at AGM on 6/3/24: "Given the performance of the Company since inception and the strong growth outlook for its investment universe, your board has no hesitation recommending to shareholders that they vote in favour of the Company continuing as an investment company for a further five year period."

Annual Financial Report -

Rising rates dent Ecofin utility portfolio as continuation vote looms -

[18bt] 15/11/2023 09:10

Strong results and upgraded medium term projections this morning from SSE, the 3rd largest position. Reduced inflation and falling yields really should be good for EGL - so for me a 17.5% discount looks tremendous value.

[mrscruff] 13/11/2023 17:46

Discount is now wider than the historic 15% and is now 18-19%. Guess we buy and get paid to wait for rates to come down. Either inflation goes down or a recession will result in rate cuts. In this scenario the discount will narrow and resulting share price movement will be hight. NextEra results had been good too.

[riverman77] 09/10/2023 17:17

Factsheet just out and interesting read on the woes facing the sector. Gives a lot of detail on NextEra Energy, their biggest holding which has been absolutely battered as higher rates leads to increased development costs.

[spectoacc] 09/10/2023 16:26

Still lost 20p of NAV in 10 days, but starting to feel it's approaching buy territory.

Trouble is, so is so very much else (albeit all the ones I'd mention I'd already hold - eg SEIT, GCP, GSF, CORD........).

[riverman77] 06/10/2023 16:06

Yes the underlying holdings would have been battered by the sell off in bond markets.

[steve3sandal] 04/10/2023 14:21

Utilities are the worst performing sector in the S&P Q2 and Q3. Down 10% in Q3. Down 17.5% in 2023 YTD. That explains some of the NAV fall. The share price fall is the same malaise which is affecting anything not high yielding and relatively defensive, whilst being listed in the UK. I imagine things will flip when we least expect it and there are a few sound companies in this portfolio which we all depend upon. EGL now very interesting to me down here. I’ve put some daft bids in below here, 2019 levels.

[spectoacc] 04/10/2023 12:54

NAV £1.97 a few weeks ago (21st Sept), £1.75 yesterday. More volatile than holders would expect?

They were buying back at £1.70 a few days before that (18th Sept).

[lozzer69] 03/10/2023 10:29

Lots of people selling today down 3 pc.

[riverman77] 27/9/2023 08:33

Yes discount was wider going back a few years, but much tighter in recent years reflecting much better performance. Can't see discount getting much wider than current level given they only hold listed securities. Personally think a good time to take a small position.

[spectoacc] 27/9/2023 06:53

Around the average of the earlier years:

[cruelladeville] 26/9/2023 18:44

Discount to NAV presently about as wide as it's historically been. I might buy a few EGL, at or near year low share price.

[spectoacc] 26/9/2023 06:56

@MrScruff - I was previously a long-term EGL holder and if you put the discount chart out longer than a handful of ZIRP years, this is at best back around its average discount. You want to buy when it's unusually wide, not now.

HL are good for longer-term discount charts.

[steve3sandal] 25/9/2023 22:27

I’ve had a look at the top 10 holdings and can’t see too many issues if you want some diversification from mainstream or popular large caps. They’re obviously using capital to pay the dividend. Ecofin are running £2bn in this area at NAV in OEICS etc and I struggle to seethe benefit to EGL shareholders of running this small trust as a closed end vehicle. Board should consider winding up at NAV or unitising imo…..if buybacks don’t work and the discount gets to 20%. I might join in soon.

[mrscruff] 25/9/2023 21:36

spectoacc the discount here is unusually wide so I disagree with you. It often trades at a premium. The holdings at are trading at historic lows though they can go lower, we are likely to have peeked interest rates and the market is forward looking.

[spectoacc] 25/9/2023 06:55

And yet the discount is nothing unusual per how EGL used to trade, and anything with exposure to water probably needs checking carefully atm - the high debt ZIRP years have left some co's unsuited to interest rates at 5%.

I'll look again at EGL if/when it's cheap.

[mrscruff] 24/9/2023 18:11

As of the 24th of September 2023, EGL represents one of the most promising low risk investment opportunities in our lifetime. However, some investors, some here, all fail to recognise its potential and are instead drawn to cash or higher yield, despite the fact that investments with higher yields frequently carry substantial debt and lower internal rates of return (IRR) and eventual total return.

Sometimes higher yielding stocks simply pay out all their earnings (e.g. REITs) and don't hold any back anything for growth like most utilities and infrastructure companies EGL invest in do.

If you're enticed by higher-yielding cash options, you will be overlooking the superior IRR potential offered here. Moreover, when cash yields eventually decrease, you could find yourself paying 25-35% more for EGL. The potential for upside risk with EGL is inevitable for those who hold onto cash.

[cruelladeville] 17/9/2023 11:10

Unusually wide discount here, not far from year low share price, 4.5% ish yield. Thinking of opening a holding here but there's higher yields and deeper discounts elsewhere in energy and infrastructure?I might start off with a smaller position and see how it goes.

[spectoacc] 09/9/2023 07:26

Had a bizarre couple of years around par, now discount returning to something more normal - tho not quite there yet.

Not sure c.4.3% yield is justification for holding a utilities IT tho. Not when there's c.8% available on other investments eg renewables/debt funds.