Jlen Environmental Assets Share Discussion Threads

[jonwig] 08/3/2019 05:36

Some renewable energy funds have been revaluing their wind assets on the basis of longer-lasting turbines (TRIG and, I think, UKW). An extra five years life has improved their NAVs by a few pence.

Can't think of any other reasons.

[pjw956] 07/3/2019 20:22

ex div on 14th march, divi 1.63.
not sure why share is riding quite so high at the moment, thoughts ?

[gateside] 01/3/2019 19:31

nerjaThanks for the dividend info.

[nerja] 01/3/2019 18:48

Gateside got my reply back , so fair play to them,


The next dividend is expected to be paid on 29 March. There will be a declaration of interim dividend on 7th March.

[gateside] 01/3/2019 07:28

I went to sitemap on their website.Under shareholder information, in the investor relations section.They have a financial calendar for all of 2019 hidden away!

[nerja] 01/3/2019 07:01

Gateside, how the hell did you find that ? well done I looked I could not find it ,I even sent an email request, no reply mind.

[gateside] 01/3/2019 06:32

Found it, hidden somewhere on their website.7th March. Update on Net Asset Value and dividend deceleration

[gateside] 28/2/2019 13:33

Most companies have a detailed Financial Calendar on their website.JLEN don't, which is not helpful to investors and poor PR on their part.

[nerja] 28/2/2019 09:43

Still no divi news?

[scallywagkid] 07/2/2019 10:55

I suspect they are shifting the next dividend payment into March so as to follow a more even quarterly pattern, in which case, declaration will likely be mid to late Feb.

[gateside] 07/2/2019 07:11

Last year net asset value and dividend deceleration were made on 23 January and year before they were on 17 January.So surprised no news from company so far this year.No planned date is mentioned on their website either.

[noiseboy] 06/2/2019 10:36

Usually the Feb Dividend has been announced by now, Seems late?

[a0002577] 10/12/2018 16:34

Thanks for the pointer to The Global Sustainability Trust IPO - I don't think I am in for this one for two reasons a) new issues often go to a discount and b) you don't get much of a dividend in the first year. So better to wait. Besides I took part in the A J Bell IPO and don't want to sell any just yet.

kind regards - A00

[a0002577] 10/12/2018 11:07

Tipped in the current IC. They give as reasons - the high yield (6.2%), small premium to NAV (6.1%) and it's defensive nature as a 'diversifier' thus:

"The trust has been managed by Chris Tanner since launch in 2014, and since the share price total return has hit 37 per cent. This may not sound as glamorous as returns on offer in stock markets, but diversifiers such as JLEN should be judged on their ability to protect capital when markets go south and how correlated they are to other asset classes."

Better methinks than the Prefs people get excited by.

[jonwig] 26/11/2018 16:30

A000 ... - you're well-organised. I try to be then fail by keeping everything in my head. That, though, is getting older and less reliable.

From the presentation pages, I think JLEN's standout point is AD, and the potential growth is considerable: p21 for example. My only related investment are much larger ones in TRIG and JLG.

[a0002577] 26/11/2018 11:36

Good Morning, Jonwig

The comments by the "boss of JLG" - and your added comments - largely coincide with my thoughts - and thanks for putting them down so clearly.

Do I ever lose a dividend when I switch? Very rarely and not unless I make a deliberate decision to do so - for example if one fund announces a surprise fund raise then I will sell almost immediately - and buy back when the price drops close to the fund raising price. More often than not I get an 'extra' dividend

Otherwise I look to my spread sheet which has yields, bid offer prices, dividend amount and the ex-div and payment dates against each share I am interested in.

This data is then fed into a little macro which calculates what I will get (no of shares and next dividend, and whether this will increase the income to the portfolio or not).

I made a switch out of NESF this morning which will increase the portfolio yield by a little - but also allows me to add a few £s (from dividends and usually in the high hundreds) to the purchase thus saving trading costs.

I usually find that my broker buys within the spread so the actual switch gets me more shares than the macro shows.

If I am planning a swirch close to ex-div day I will try to do it on the actual ex div day (the Thurday) just as the market opens as sometimes (say 1 in 3) you can get yesterday's price very first thing.

[jonwig] 25/11/2018 17:15

OK, thanks for both posts today.

As I said, I was put into this by a broker who has a discretionary mandate over some funds, and I am happy to trust them. And fairly wobble-free over Oct-Nov is a plus!.

Discount rate - the boss of JLG said once (in a conference call) that these infra funds watch each others' discount rates very closely and certainly don't apply purely objective criteria. JLG of course manages this fund (via JLCM) and also managed JLIF which was bought for a big premium to its published NAV. (Also HICL has been selling assets at a premium.)

Obviously PFI funds shouldn't be compared directly with JLEN and similar, but I sense there's a lot of conservative valuation going on here with a discount rate rather higher than they could have chosen.

A000... - do you ever lose a dividend when you switch?

[a0002577] 25/11/2018 16:46

One of the major factors affecting the reported NAV is the discount rate applied to the assets.

The report says this on Discount Rates:

"Taking the above into account, and the change in mix of the portfolio during the period due to new acquisitions, the overall Weighted Average Discount Rate ("WADR") of the portfolio was 8.2% at 30 September 2018 (8.1% at 31 March 2018)."

Insofar as I understand it, the lower the discount rate the higher the NAV - and there is at least one fund which has been gradually reducing its rate to massage the NAV. I think JLEN is at the top of the range selected.

I keep trying to find the time to compare all the Green Infrastructure funds to see how they manage their NAV but as you will appreciate it is a fair amount of work.

I think there are seven if you include Gore Street - there are also some VCTs which have similar portfolios so will include them in the mix as well.

As I have said before, I have no particular loyalty to any of the funds and am fully prepared to switch in and out as their prices go on annual walkabout. On checking, I seem to have made 8 switches in and out of JLEN in the past 3 years - each one profitable in its own right as well as taking a profit on each share I went into before switching out again. I am in at the moment.

[spectoacc] 25/11/2018 15:40

@Jonwig - personally, I don't think the political angle is priced in to something trading on a premium. Then again, I'm more pessimistic than most on Corbyn's chances (ie I think he's got a decent chance of being the next El Presidente!).

Fair point re accounting period but surely that does say that NAV would have been lower this time, had they stuck to previous methodology. Again - I've little faith in any power price forecasts, and maybe they can be as likely wrong one way as the other.

[jonwig] 25/11/2018 06:14

A000..., Spec - I read that passage a bit differently. In the past, they've used one source for forecasting, now they combine forecasts from two. "NAV per share would have been 2.3 pence lower" refers to one particular accounting period (of 6 months) to the next one. It does not imply it would have been consistently lower historically.

The threat to JLEN and others is lies in an unexpected political decision, and that can't be modelled.

[spectoacc] 24/11/2018 11:17

@A0002577 - yes to name ;)

And good spot - no, hadn't seen that. To be fair to JLEN, if it's just "bringing them into line with the rest of the sector", then fair enough. But one thing I've noticed via another holding is - no one seems able to predict the wind speed, or the amount of sunshine over a year, or, in particular, where the hell power prices are going. You could argue they'll be as wrong as often as they're right, and maybe that's why they're adopting a methodology that "..reduce(s) the volatility observed in portfolio valuations..".

But as you say - NAV down not up, so the premium as per previous NAV is even greater.

That's not to say JLEN aren't a good buy/hold, and that they won't always trade at a decent premium. But it's amazing how much eventually goes to a discount.

[a0002577] 24/11/2018 10:59

Probably wise to sell SpecToAcc ?Speculate to Accumulate?, as I have just spotted this in the report:

After the initial two-year period, the project cash flows assume future electricity and gas prices in line with a blended curve informed by the central forecasts from two established market consultants, adjusted by the Investment Adviser for project-specific arrangements and price cannibalisation as required. This is a change in valuation policy from the year ended 31 March 2018, where electricity and gas price assumptions were based on the forecast of a single market consultant. The Directors have adopted the new policy to bring the Company in line with the majority of other funds within the listed renewable's sector to aid comparison and also with the intention of reducing the volatility observed in portfolio valuations due to reflecting additional views on medium and long-term electricity and gas prices. Changes to forecast power prices have added 0.7 pence per share to the NAV compared to the previous forecasts. If the Directors had maintained the previous policy in updating power price forecasts, NAV per share would have been 2.3 pence lower.

so in reality on a like for like basis the NAV has fallen over the year!

[cyfran101] 24/11/2018 00:09

Personally i think think AD is vastly underused in this country i would like to see it used much more by the water companies for treatment of the free feedstock they receive, sludge, fatbergs and agricultural feedstock from contaminated ground. Also diverting food waste from landfill to AD. Therefore there has to be a political risk to subsidies for using productive land for feedstock. However at present it is going to be lucrative for JLEN.