Bluefield Solar Income Share Discussion Threads

[a0002577] 03/10/2017 12:25

Hi, Hazl - if you are looking at income stocks you you coold do worse than look at IHR and RMDL. ESP could be interesting if they drop much more - below 100.

It is worth having a look at the Lemon fool which has a more active investor community. It is free to join and there are a lot of very knowledgeable folk over there. I am known as BusyBumbleBee over there

Take time to read a lot before you make your first post and get the flavour

Kind regards & good luck

[hazl] 03/10/2017 09:34

OT

Again,I am collecting a few diamond stocks.
They have gone to rock-bottom and I sense it will soon be time for a recovery.
De Beers have committed a large amount of cash to some marketing coming out soon,so I understand, and will hopefully lift the whole sector.
Speculative,but different!
I have BRD and RLD so far.
One lot of Bluerock diamonds are already in profit,but not the second.
Richland doing even better but see how it goes.

[hazl] 03/10/2017 09:26

Interesting.
Thank you, will take a look.
I never usually get the Investors Chronicle,so it was a real surprise.
Perhaps I ought to get it more often!


I have had some good stocks this year and am trusting this will be the same.
I was lacking a good dividend player, so it fits the bill, though I can understand your rotation idea, I am a bit fed up with going in and out of stocks.

H

[a0002577] 03/10/2017 08:49

Good morning, Hazl - I too subscribe to IC so had seen that article. You might like to look at the TRIG thread where I have posted a link to a very good presentation they did yesterday which contains a lot of background info. The link is worth a read.

For info, I hold (at the moment) BSIF, NESF, FSFL, JLEN and TRIG. I tend to trade between them as well as they go in and out of favour - usually when they announce a new tranche of equity which UKW have just done so am keeping a careful watch on the price

[hazl] 02/10/2017 19:16

Thank you A000257.
That was actually a quote from the Investor's Chronicle.

I am aware of the interest-rate vulnerability but the managers so far have been very canny and so according to the article I have made a reasonable choice.
We will see.

[a0002577] 02/10/2017 14:27

Hi Hazl, You say 'The fact that they are trading at a premium shows the market thinks they are still sound investments.

Be aware that they work their NAV using slightly different values to other Green infrastructure funds. See their annual report which says

"Activity in the acquisition market place between willing buyers and willing sellers has seen higher transaction valuations than in the previous years, and this reflects lower discount rates on the cost of capital, whether equity, or weighted between equity and debt. This reduction has been further emphasised by historically low long term Sterling interest rates, and we were pleased to take advantage of that opportunity with our facility with Aviva Investors. To reflect these market changes we have decided to adopt discount rates at lower levels than for the previous year with equity now discounted at 7.43% and a weighted average cost of capital of 6.15%."

I also tend to trade these as buy/sell costs are low and there is often some seasonality in their price.

[hazl] 02/10/2017 14:09

Had a bit more time to read through the previous posts over the weekend and there are some extremely well-informed observations on the industry.
Thanks.
I didn't get much time before.

[hazl] 30/9/2017 13:44

I am just so pleased
BSIF that as you know I bought last week is mentioned in the Investor's Chronicle.
There is a whole section on Funds and renewable energy.
The adaption to lower subsidies and where the growth opportunities are coming from is discussed.


They is a nice little piece on
BSIF Bluefields Solar Income fund explaining that they can wring out further income from the projects they do own rather than acquisition.
BSIF is the highest - yielding trust in the sector at 6.4 per cent and is taking this approach.
Again later in the piece 'The fact that they are trading at a premium shows the market thinks they are still sound investments and they continue to pay nice attractive dividends' said Mr de Bunsen from a different company.

[douglas fir] 28/9/2017 12:31

How the £583m Bluefield Solar Income fund is benefitting from a 'transformative market'
330% increase in AUM since launch

The outlook for the renewables fund sector is looking more positive than ever as demand continues to grow from investors searching for yield and renewable energy becomes part of the "mainstream" according to James Armstrong, managing partner at Bluefield Partners.

Earnings and dividends (pps)

In its annual results released last week for the 12 months to 30 June, the £583m Bluefield Solar Income fund revealed a NAV total return of 18.5%, a share price total return of 23% and a third consecutive year of dividend outperformance against its targets (see table, right).

It is also the top performing fund in its AIC Infrastructure - Renewable Energy sector over one and three years.
Popularity

Armstrong, who founded and manages Bluefield alongside Mike Rand and Giovanni Terranova, attributes its success to being in a sector that is becoming increasingly popular, while using a focused and simple strategy.
'Traditional asset classes cannot be relied upon to provide enough diversification in multi-asset portfolios'

He said: "Solar assets are the most predictable and simplest area within renewables. There are no moving parts, gear boxes or wind turbines and its energy source comes in the morning and goes at night.

"Solar power is also becoming more mainstream. Some of the UK's biggest companies are committing to becoming 100% renewable, which is something that will not turn back now.

"We entered the space in 2006 when renewables were esoteric but now new government policies and concepts such as electric vehicles show we are in the middle of a transformative market. There is now a level playing field, which is more attractive to us."
Stability

As a result, the team believes renewable energy is a stable asset class and the low interest rate environment means the space is particularly attractive to investors hunting for yield.

The trust is currently yielding 6.4%, which is 0.8 percentage points above the sector weighted average, according to Canaccord Genuity.

Since its launch in 2013, the trust has followed a full pay-out model, whereby all income is paid to shareholders and not held back. For a third year running, it has exceeded its dividend per share target and declared a fully-covered DPS of 7.25p.

The alternatives sector has become more popular in recent years, particularly within the investment trust space as the closed-ended structure means investors do not need to worry so much about liquidity issues.

Armstrong added: "Trusts are also cost-effective and more transparent. It is a structure which enables assets to grow in a sensible way."
Growth

A study released earlier this year by the Association of Investment Companies (AIC) revealed the top 20 fastest growing trusts by AUM were all within the alternatives sector, with renewable energy and social housing funds being the most popular.

Bluefield Solar Income came in eighth place, having seen a 332.5% increase in AUM as at July 2017, since it launched with just £130m in July 2013.

But despite this success, Armstrong said the team never sets itself a false target.

He added: "We do not need to reinvest earnings to make returns. We just buy at the right price and pay out all the earnings. We are pleased to say we could make no investment today, yet we could still deliver returns to our shareholders."

Over three years to 18 September, the trust has returned 32.5% in share price terms, outperforming its sector average return of 27.9%, according to FE Trustnet.

It is currently trading on a 4.4% premium, in line with its 12-month average.

[douglas fir] 28/9/2017 12:29

How the £583m Bluefield Solar Income fund is benefitting from a 'transformative market'
The outlook for the renewables fund sector is looking more positive than ever as demand continues to grow from investors searching for yield and renewable energy becomes part of the "mainstream" according to James Armstrong, managing partner at Bluefield Partners.

hxxps://www.investmentweek.co.uk/investment-week/news/3017753/how-the-gbp583m-bluefield-solar-income-fund-is-benefitting-from-a-transformative-market?utm_medium=email&utm_term=&utm_content=&utm_campaign=IW.SP_01.Daily_RL.EU.A.U&utm_source=IW.DCM.Editors_Updates&im_edp=aol.com&;im_company=DE%20EENDRAGT%20PENSIOENFONDS&utm_medium=email

[hazl] 28/9/2017 12:12

This is a slightly older article from i i i


'Renewables
Bluefield Solar Income

Investors who want a higher yield and a lower discount than currently available via infrastructure investment companies might prefer one of the growing range of renewable energy trusts. We prefer solar energy specialists to wind, as solar is less politically contentious and less damaging to the landscape.

As none of the companies concerned has a long track record, we are opting for Bluefield Solar Income (BSIF), as it has the highest yield and has achieved the highest NAV total return over the past year, but trades on the lowest premium in its sub-sector.

Its portfolio is well-diversified by geography (stretching from Cornwall to Norfolk), asset type (including agricultural and industrial) and subsidy.'

[hazl] 28/9/2017 12:06

'A second macro driver is the pick-up in global inflation. Analysis suggests that most inflation in the global system is non-core, driven by energy prices rising off low levels and food prices responding as a second order effect (and also to poor growing conditions globally in the latter months of 2016).

Whilst it is doubtful, therefore, there will be any meaningful pick up in UK core inflation over the medium term (with imported inflation and energy price increases working through the time series over 12 months), increases of any kind benefit infrastructure assets.

An illustration of the magnitude of this effect is evidenced by the second half 2016 NAV performance of Bluefield Solar Income fund Limited where an increase in the long-term assumption of RPI uplifts within their projects by 0.25%, from 2.5% to 2.75%, increased NAV by 2.8%. The contrast against the negative effect rising inflation and market interest rates would have on bond funds is clear. '

[hazl] 27/9/2017 18:28

I expect it is to do with subscribing now perhaps?
Pity it was a good video.

[hazl] 27/9/2017 18:14

TRY THIS INSTEAD

[hazl] 27/9/2017 18:12

I don't understand why the video has been removed.
It was fine for some time.
It is the Proactive site and an interview on BSIF on the 26th September.
It came across quite well actually.

[hazl] 27/9/2017 14:34

Again if you're at all worried about Corbyn and utility companies, this serves a
similar purpose,minus the political risk in that respect,perhaps.

[hazl] 27/9/2017 12:45

Anyway fundamentals alone make this pretty impressive so I've just got a few.

[hazl] 27/9/2017 12:44

Anybody know if you qualify for the dividend if you buy today?

[llef] 26/9/2017 13:25

Yes I agree A0002577 - the article says that basing this new project next to existing ones was crucial to driving down costs, as it made use of common infrastructure such as grid connections (which obv all our existing projects possess!)

[gateside] 26/9/2017 13:06

Bought in yesterday. Already own shares in TRIG and JLENSeems to be a fair bit of media coverage about good prospects for Solar companies.

[a0002577] 26/9/2017 12:09

Agreed, llef - but what is more interesting is that the sites themselves have value and the grid connection and most importantly of all, there is some LED technology coming down the road which will up the output of solar panels substantially.

[llef] 26/9/2017 10:18

interesting article today in FT relating to solar (snippet below)

It certainly gives me hope that BSIF's assets will still have a substantial residual value even after the subsidies run out in 15-20 year time



"The first solar power farm in the UK to have been built without government subsidy will open on Tuesday in what supporters of renewable energy generation are describing as a “landmark” moment for the industry.

A 10 megawatt (MW) solar farm, capable of generating enough power for 2,500 homes, has been developed in Bedfordshire by Anesco, a private company that specialises in designing and building solar and battery storage sites before selling them on."