Fund Profile

TRIG - Renewables Infrastructure Group 24 May 2024


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by TRIG - Renewables Infrastructure Group. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

TRIG’s portfolio continues to evolve, despite equity capital markets being closed…

The Renewables Infrastructure Group (TRIG) is one of the ‘haves’ in the renewable energy infrastructure universe, with mature assets generating significant cash alongside a decent development pipeline. It has scale, which has allowed it to assemble a high quality, institutional portfolio. This puts it in a good position relative to smaller, more nascent peers.

Whilst the board is prioritising the repayment of more expensive short-term borrowings with surplus cash and capital, the portfolio is not standing still by any means. Wind and solar assets continue to make up the bulk of the portfolio by value, but batteries (or ‘flexible capacity’) now increasingly feature. We discuss TRIG’s recent acquisition of Fig Power, a specialist developer of battery assets in the UK, in more detail in the Portfolio section. Portfolio diversification leads to significantly smoother cash flows from which to pay the Dividend than might otherwise be the case.

TRIG’s approach to borrowings insulates shareholders from changes in interest rates, and given each project is also paying down debt every year, in time reduced asset level gearing will allow the managers to regear, meaning TRIG will have cash to reinvest and further build the portfolio. Elsewhere in the portfolio, the managers have been selectively selling assets, which enables TRIG to pay down the more expensive floating-rate debt, but at the same time enhance the overall portfolio construction and performance.

One significant initiative the team are working on is enhancing the ability of existing wind farms to generate power through retrofitting enhancements to wind turbine blades. RES’s trials at two of TRIG’s sites demonstrated an energy yield uplift of up to 5%, which has now been fully deployed at one site. The team are progressing well with a phased installation on four more sites, and an appraisal of a further three sites is underway.

Analyst's View

TRIG’s manager, InfraRed Capital Partners, has a background in traditional infrastructure, which in our view has had an important influence on how the portfolio has been assembled. TRIG’s managers aim to minimise risks across the portfolio, by spreading investments across six European countries (including the UK). This means that revenues are diversified across different political regimes and across weather systems.

In absolute terms, TRIG’s prospective total returns are attractive, in line with long-term total returns from equities. Taking the weighted average discount rate of 8.1%, deducting ongoing charges of c. 1% per annum (see Charges) to get a simple estimate of NAV total returns going forward, investors stand to achieve NAV total returns of c. 7.1% per annum on a simplistic basis. As we have discussed in the Portfolio section, these returns should correlate with inflation , meaning that a good proportion of these returns can be considered real. The risks investors are taking to achieve these returns are minimised through diversification, and currently there is a potential for tailwinds to these returns from interest rates falling, with valuations already having taken the hit from inflation falling.

Sentiment towards TRIG and the renewable energy infrastructure peer group has waned, leading to a disconnect between the NAV and the share price. In our view, this serves to highlight the potential opportunity, especially given the attractive long-term income profile of TRIG, and the potential for capital growth with Fig Power and the trust’s development activities. TRIG remains a quality offering amongst the peer group. Any narrowing of the discount would serve as an accelerant to shareholder returns, over and above the NAV returns generated.


  • A high yield of 7.4%, with the potential for NAV growth from reinvestment of surplus cash
  • Has a pure exposure to diversified assets, technologies and subsidy regimes, which are uncorrelated to equity markets, and scores well on ESG matters
  • Inflation-link has been positive, building on the historical stability of TRIG’s cash flows


  • Discount to NAV may persist for some time
  • Dividend cover not as high as that of funds which are not amortising, i.e. paying down debt
  • Macro uncertainty (e.g. lower power price forecasts and high interest rates) have provided a headwind to the NAV, and may persist
Continue to Portfolio
2024 Kepler Alternative Income Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for alternative income... Find out more

Fund History

10 Jul 2024 Things can only get better
Discounts are yawning but markets are thawing and boards are on the offensive; Labour might not be the only thing making a comeback this year...
26 Jun 2024 Kings for a day
As Britain heads to the polls, our analysts imagine what they'd do given a chance to implement economic reform…
24 May 2024 Fund Analysis
TRIG’s portfolio continues to evolve, despite equity capital markets being closed…
22 May 2024 Keep It Slightly-unconventional, Stupid
We argue a position in bonds should be diversified with alternatives…
17 Jan 2024 Top of the Pops
We reveal the winners of our investment trust ratings for 2024…
19 Dec 2023 Fund Analysis
TRIG’s shares have dramatically derated over 18 months, yet prospective returns appear more attractive, not less…
29 Nov 2023 We need to talk about discounts
Viewing investment trust discounts as a problem ignores the crucial role they play in keeping the sector on an even keel...
09 Aug 2023 Should I stay, or should I go?
Re-appraising the invitation to the bond party…
19 Jul 2023 Fund Analysis
TRIG’s long-term inflation-linkage seems underappreciated by a market fixated on the short term…
13 Apr 2023 Fund Analysis
TRIG’s consistent and inflation-linked returns are underpinned by a high-quality portfolio…
22 Mar 2023 Good vibrations
We identify some sectors with structural discounts we think could close over time…
09 Feb 2023 Here comes the sun
Our analysis suggests renewable energy should be at the core of a well balanced portfolio...
11 Jan 2023 Solving the Rubik’s Cube
We reveal the winners of our investment trust ratings for 2023…
20 Dec 2022 Fund Analysis
TRIG’s attractions remain undiminished, yet trade on a discount of 4.5%…
30 Nov 2022 Cry havoc!
Lessons from a year in which an already troubled world was savaged by the dogs of war...
26 Oct 2022 Fund Analysis
We look at TRIG’s key sensitivities to macro factors…
21 Sep 2022 Jolly green giant
There could be a solution to economic troubles on the horizon, and one where the UK is a world leader...
10 Mar 2022 Fund Analysis
TRIG’s managers continue to diversify the portfolio…
09 Mar 2022 Private markets: A closer look at infrastructure and renewables
We examine the £27bn listed Infrastructure and Renewable Energy Infrastructure sectors…
24 Nov 2021 Holding back the tears
While the final text of COP26 fell short of what many had hoped for, the writing is on the wall for fossil fuels and, from an investment perspective, the age of sustainability has only just begun…
14 Jul 2021 Fund Analysis
TRIG is putting ESG considerations at the centre of everything it does…
10 Jun 2021 Green is good!
2021 will see billions dedicated to sustainable initiatives, which brings with it a host of possible investment opportunities...
12 May 2021 Riders on the storm
We look at the yields in the alternatives space and how they have been affected by the pandemic…
24 Feb 2021 Dire Straits or Money for Nothing?
As discounts reach historically narrow levels across the board – our analysts debate whether a premium is a price worth paying…
17 Feb 2021 Jungle Fever
Soaring interest in ESG has exciting implications, but risks pushing some stocks to distinctly unsustainable valuations...
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
10 Dec 2020 Fund Analysis
TRIG’s diversified income and strong ESG credentials justify its premium rating…
15 Oct 2020 Nice guys finish first
ESG has moved from hippy pipe-dream to corporate mainstream, but what is it really and where do we see opportunities?
09 Sep 2020 Time to switch horses?
We look at what returns are likely from equity markets in the coming decade and identify which alternatives could offer similar or greater returns for lower levels of risk…
09 Jul 2020 The next big thing: two mega-trends that everyone should own
Tech seems to beat every other sector hands down – in both up and down markets – but nothing lasts forever. Where else should investors be looking for secular growth themes?
01 Jul 2020 Fund Analysis
TRIG continues to diversify its portfolio, and has reaffirmed its 2020 dividend target...
09 Oct 2019 Bond proxy?
As a replacement or complement for longer duration bonds, listed alternative income funds look an interesting, well… alternative..
09 Oct 2019 Fund Analysis
Seeks to provide investors with long-term, stable dividends from an increasingly diversified portfolio of renewable energy assets…
22 Mar 2019 Fund Analysis
Seeks to provide investors with long-term, stable dividends whilst preserving the capital value of its investment portfolio...
06 Mar 2019 Stairway to heaven
Our research shows that reinvesting the income generated by alternative assets could add a significant boost to long-term portfolio performance…
15 Aug 2018 The income edge
Last year saw investment trusts soar in popularity among both retail investors and wealth managers. We examine why this has happened, as well as the structural advantages of investment trusts for income-hungry investors...
19 Jul 2018 Fund Analysis
The Renewables Infrastructure Group (TRIG) seeks to provide investors with long-term, stable dividends whilst preserving the capital value of its investment portfolio...
19 Jul 2018 A new dawn
As the sun sets on fossil fuels, we examine the opportunities for investors in the burgeoning listed renewable infrastructure sector...
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