Half-year Report
02/08/2023 07:01
02 August 2023
Premier Miton Global Renewables Trust Plc (the ‘Company’)
Legal Entity Identifier: 2138004SR19RBRGX6T68
Premier Miton Global Renewables Trust PLC's half report and accounts for the
six months to 30 June 2023 is available
at https://www.globalrenewablestrust.com/documents/.
It has also been submitted in full unedited text to the Financial Conduct
Authority's National Storage Mechanism and is available for inspection
at data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) in accordance with
DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.
PREMIER MITON GLOBAL RENEWABLES TRUST PLC
Half Year Report
for the six months to 30 June 2023
INVESTMENT OBJECTIVES
The investment objectives of the Premier Miton Global Renewables Trust PLC are
to achieve a high income from, and to realise long-term growth in the capital
value of its portfolio. The Company seeks to achieve these objectives by
investing principally in the equity and equity-related securities of companies
operating primarily in the renewable energy sector, as well as other
sustainable infrastructure investments.
GREEN ECONOMY – LONDON STOCK EXCHANGE In January 2021, the Company received London Stock Exchange’s Green Economy Mark, a classification which is awarded to companies and funds that are driving the global green economy. To qualify for the Green Economy Mark, companies and funds must generate 50% or more of their total annual revenues from products and services that contribute to the global green economy.
PRI – PRINCIPLES FOR RESPONSIBLE INVESTMENT The Fund Manager integrates Governance and Social responsibility into its investment process. Premier Miton is a signatory to the Principles for Responsible Investment, an organisation which encourages and supports its signatories to incorporate environmental, social, and governance factors into their investment and ownership decisions.
FE FUNDINFO – CROWN FUND RATING – 4 STARS The Crown Fund Rating is a global quantitative rating that is based on a fund’s historical performance relative to an appropriate benchmark. The rating relies on three key measurements - alpha, volatility and consistent performance, to dictate the one-to-five Crown score. The ratings are designed to help investors distinguish funds that have superior performance in terms of stock picking, consistency and risk control.
COMPANY HIGHLIGHTS
for the six months to 30 June 2023
Six months to Year ended
30 June 31 December
2023 2022
TOTAL RETURN PERFORMANCE
Total Assets Total Return 1 (6.2%) (7.3%)
S&P Global Clean Energy Index (GBP) 2 (11.5%) 6.6%
Ongoing charges 3 1.68% 1.70%
Six months to Year ended
30 June 31 December
2023 2022 % change
ORDINARY SHARE RETURNS
Net Asset Value per Ordinary Share (cum income) 4 156.35p 178.44p (12.4%)
Mid-market price per Ordinary Share 132.00p 155.50p (15.1%)
Discount to Net Asset Value (15.6%) (12.9%)
Net Asset Value Total Return 5 (10.4%) (12.1%)
Share Price Total Return 2 (12.9%) (17.7%)
Six months to Six months to
30 June 30 June
2023 2022 % change
RETURNS AND DIVIDENDS
Revenue Return per Ordinary Share 4.43p 3.95p 12.2%
Net Dividends declared per Ordinary Share 3.70p 3.50p 5.7%
HISTORIC FULL YEAR DIVIDENDS
31 December 31 December
Dividends paid in respect of the year to: 2022 2021 % change
Dividend 7.00p 7.00p –
Six months to Year ended
30 June 31 December
2023 2022 % change
ZERO DIVIDEND PREFERENCE SHARE RETURNS
Net Asset Value per Zero Dividend Preference Share 4 113.42p 110.71p 2.4%
Mid-market price per Zero Dividend Preference Share 2 108.50p 108.50p 0.0%
Discount to Net Asset Value (4.3%) (2.0%)
As at As at
30 June 31 December
2023 2022
HURDLE RATES (PER ANNUM)
Ordinary Shares
Hurdle rate to return the 30 June 2023 share price of 132.00p (December 2022: 175.50p) at 28 November 2025 6 (1.8%) (0.8%)
Zero Dividend Preference Shares
Hurdle rate to return the redemption share price for the 2025 ZDPs of 127.6111p at 28 November 2025 7 (30.3%) (27.7%)
Six months to Year ended
30 June 31 December
2023 2022 % change*
BALANCE SHEET
Gross Assets less Current Liabilities £ 44.6m £48.3m (7.6%)
Zero Dividend Preference Shares (£ 16.1m) (£15.7m) 2.7%
Equity Shareholders’ Funds £ 28.5m £32.5m (12.3%)
Gearing on Ordinary Shares 8 56.5% 48.4%
Zero Dividend Preference Share Cover (non-cumulative) 9 2.32x 2.51x
1 Source: Premier Fund Managers Ltd (“PFM Ltd”). Based on opening and closing total assets plus dividends marked “ex-dividend” within the period.
2 Source: Bloomberg.
3 Ongoing charges have been based on the Company’s management fees and other operating expenses as a percentage of gross assets less current liabilities over the period (excluding ZDPs’ accrued capital entitlement).
4 Articles of Association Basis.
5 Source: PFM Ltd. Based on opening and closing NAVs plus dividends marked “ex-dividend”.
6 Source: PFM Ltd. The Ordinary Shares Hurdle Rate is the compound rate of growth of the total assets required each year to meet the Ordinary Share price at 30 June 2023.
7 Source: PFM Ltd. The ZDP Shares Hurdle Rate is the compound rate that the total assets could decline each year until the predetermined redemption date, for ZDP shareholders still to receive the redemption entitlement.
8 Source: PFM Ltd. Based on Zero Dividend Preference Shares divided by Ordinary Shareholders’ Equity at end of each period.
9 Source PFM Ltd. Non-cumulative cover = Gross assets at period end divided by final repayment of ZDP Shares plus management fees charged to capital.
*% change is calculated on actual figures, and may be different from that which could be obtained by using rounded figures shown within this section.
CHAIR’S STATEMENT
for the six months to 30 June 2023
Introduction
Following a difficult 2022, it is disappointing to record a further
deterioration in the first half of 2023. The renewable energy sector, despite
performing well on a fundamental basis, with higher earnings and dividends
being the norm, lost value as inflation and interest rates continued to
increase.
The macro-economic environment has proved particularly challenging for what
the market perceives to be interest rate sensitive sectors, commonly referred
to as “bond proxies”. This includes utilities, property, and of relevance
to Premier Miton Global Renewables Trust (“PMGR”), renewable energy.
A widely held view is that companies with highly visible revenues in which a
large part of investment return is taken through the dividend, are
comparatively less attractive when yields on government bonds or cash
increase. However, this ignores the positive dynamics applicable to the
renewable energy sector, such as its exceptional growth, government support,
and power prices which remain relatively high despite a recent pull back.
The primary triggers for inflation are well understood, primarily the
post-covid supply shock exacerbated by overly loose monetary policy (although
central bankers may dispute the second reason). The debate has now moved on to
the question as to what extent inflation expectations have become
“embedded”. Central bankers, caught behind the curve, are now playing
catch up. Rates, particularly in the UK, have reached higher levels than they
might otherwise have done had monetary tightening started earlier.
Despite this rather pessimistic macro-economic backdrop, I believe we are
closer to the end of this cycle than the beginning, and given strong
fundamentals, the renewable energy sector is well placed to rebound when
interest rates peak and potentially start to fall again.
Performance
The Company’s total assets total return, measuring the performance of the
portfolio including costs, was a negative 6.2%. This was however better than
the Company’s performance comparator, the S&P Global Clean Energy Index (GBP
adjusted), which returned a negative 11.5%.
Renewable and clean energy was a distinct market laggard, with the major
western market indices recording gains over the first half of the year. The US
stock market performed well, although performance was concentrated in the
well-known large capitalisation technology companies. Europe also performed
well, but the UK market, while being in positive territory, was a little way
behind Europe.
Given PMGR’s geared capital structure, movements in gross assets are
amplified in the net assets. The NAV total return was negative 10.4%.
In common with many other investment trusts, particularly those focussed on
infrastructure, the discount at which PMGR’s shares trade in comparison to
their NAV, widened during the period, from 12.9% at December 2022, to 15.6% at
June 2023.
Despite depressed capital values, income generation has been strong,
reflecting a good operating environment and the generally strong earnings
performance of the portfolio companies.
Review of the six months
Renewable energy companies currently face a variety of headwinds and
tailwinds.
European power prices have pulled back from recent highs but remain elevated
in comparison to “pre-Ukraine” levels. Gas prices, a key determinant of
electricity prices, have fallen back on weak demand from Asia and a
combination of mild weather and low demand in Europe. Europe has made good
progress in securing ship-borne liquified natural gas (“LNG”) to replace
piped Russian gas, but this major market change will inevitably lead to
structurally higher costs in future.
European governments, while increasing renewable installation targets, have
persisted with additional taxes, increasing sector complexity and risk. The
US, through the “inflation reduction act”, appears to be on a very
different track with huge tax incentives available to the renewable energy
sector to encourage further investment.
Higher financing costs, coupled with equipment suppliers seeking to restore
profitability through higher prices for items such as wind turbines, have
increased the costs of new build renewable projects. As such, markets have
become concerned that returns on new renewable projects might be under
pressure. However, current levels of power pricing and strong demand for
renewable power, indicate that returns on well-designed projects should remain
attractive.
As noted above, the most significant market driver over the half was the
increase in central bank interest rates. This has been most pronounced in the
UK, where the Bank of England raised its base rate from 3.50% at December 2022
to 5.00% by June 2023. Of more relevance to renewable sector valuations are
long dated bond yields, with UK 10-year gilt yields increasing from 3.67% at
the close of 2022, to 4.39% by the end of June. By contrast, the US
Treasury’s increase in the Fed Funds rate, from 4.50% to 5.25%, was not
reflected in 10-year US treasury yields which were relatively flat over the
half, from 3.87% at the end of 2022 to 3.84% at June 2023.
It is worth remembering that interest rates have been increased in order to
bring down inflation. European renewable companies in particular often have a
high degree of indexation built into their revenues, therefore benefitting
from inflation. However, this did not stop the sector being sold down on the
back of higher rates.
Earnings and Dividends
Earnings and dividend growth reported by the majority of portfolio holdings
was very strong, with many companies reporting exceptionally good results on
the back of high power prices, coupled with continued growth in assets.
Dividend receipts were consequently higher, with net revenue earnings per
ordinary share increasing by 12.2% to 4.43p.
Given the healthy income picture, in April the Board declared an increased
first interim dividend, of 1.85p per share, paid at the end of June. The Board
has now declared a second interim dividend of 1.85p per share, to be paid on
29 September 2023 and will be marked ex-dividend on 31 August 2023. These
dividends represent an increase of 5.7% as compared to the dividends paid in
respect of the first half of 2022.
Outlook
The war in Ukraine shows little sign of ending in the near future.
Commodities, and in particular energy, remain volatile as a result. Further,
it could be argued that mild weather and an effective voluntary rationing
programme, has allowed a degree of complacency to creep into European energy
markets. Continued conflict, a return to demand growth in Asia, and a cold
2023/24 winter could see another sharp spike in gas and electricity prices.
The earnings and asset performances of PMGR’s portfolio holdings have most
certainly not been reflected in share prices over the past twelve months. Over
the longer term I believe this anomaly will be likely to correct when markets
again focus on fundamental value and business performance. Until then,
investors’ patience may continue to be tested.
Gillian Nott OBE
Chair
1 August 2023
INVESTMENT MANAGER’S REPORT
for the six months to 30 June 2023
Market review
While the first half of 2023 proved to be successful in terms of underlying
performance measured by company earnings and dividends paid, share prices
rather frustratingly took their direction from macroeconomic issues, mainly
falling in price.
It is some consolation that the Trust’s income levels increased as a result
of the strong underlying performances, and this has enabled the Board to
declare an increased dividend.
Over 2021 and 2022, PMGR’s portfolio has had a higher exposure to Europe and
the UK and less in North America. There were a few reasons for this. Firstly,
European and UK renewable energy assets tend to have a higher degree of
inflation linkage within revenues than those in the US, where renewable power
is usually sold on pre-determined fixed prices. Moving into a more
inflationary environment, European and UK companies should therefore offer
more protection against inflation.
Secondly, we expected UK and European electricity prices would move higher, to
the benefit of renewable generators. This was due to the structural shift in
the gas market, replacing piped Russian gas with higher priced LNG, increased
carbon prices, and the increasingly unreliable and ageing French nuclear power
stations.
On a basic level, these decisions have turned out to be largely correct. Many
of the UK and European investments have reported very strong financial
results, with increased dividends on the back of higher power prices and
inflation linked revenues. North American holdings, although benefiting from
improved sentiment generated by the Inflation Reduction Act, have
under-performed Europe in terms of financial results.
What has come as a disappointment, however, is that the market has appeared to
largely ignore reported financial results and higher dividends, focussing
instead on movements in short term interest rates.
European Governments and the EU have not helped matters by imposing windfall
taxes onto renewable generators, while at the same time calling for increased
levels of investment. This has soured investor sentiment, created asymmetric
financial risks and is a disincentive to future investment.
Portfolio review
The portfolio was almost universally weak, with only a few positive
performances to offset falling share prices. Despite this, most companies made
good operational progress, business plans tended to be expanded rather than
reduced, and dividends, with just one exception, were either held or
increased.
Given weak share prices, the sector is vulnerable to corporate activity, and
one holding received a takeover offer at a substantial premium to its share
price.
Both geographic and sector allocations were relatively settled, and portfolio
trading activity was lower than previous years. The UK and Europe remain the
largest allocations, at around 33% each, with Global (companies operating on a
global basis) just over 20%. The holding in North American companies remains
relatively modest at approximately 8% and we remain of the view that US
renewables offer lower value than European counterparts.
Emerging markets continue to be held at a low weighting in the portfolio, with
China and Latin America each at approximately 2%.
As in prior years, we categorise core renewable generation companies into two
groups. Firstly, the investment companies, often referred to as yield
companies or “yieldcos”, which usually acquire built, or construction
ready, assets paying out the majority of cash-flow to investors, and raising
capital through new equity. Secondly, integrated development companies, which
develop projects from first inception, retaining some assets and raising
capital through a combination of retained earnings and project sales.
Together, these form approximately 70% of the portfolio.
Yieldcos & Funds
As noted above, the renewable energy yield companies performed poorly in the
period. Of the UK focussed names held, Greencoat UK Wind, NextEnergy Solar,
and Foresight Solar, saw their shares fall by 5.2%, 15.0%, and 17.1%
respectively over the half year. Reported NAVs per share have been robust,
with March 2023 reported NAVs being 11.4%, 0.7% and 6.1% ahead of March 2022
respectively. Essentially, increased interest rates (used as a “discount
rate” to calculate the NAV) have been offset by higher power price and
inflation assumptions. In addition, the companies have generated cash flows
well in excess of dividends paid to shareholders.
The three UK listed European focussed yieldcos held also showed a similar
dynamic, with Octopus Renewable Infrastructure, Aquila European Renewables,
and Greencoat Renewables seeing share price declines of 7.9%, 3.0% and 11.4%
respectively. March 2023 NAVs were 3.6%, 6.4%, and 3.1% higher than 12 months
earlier, again demonstrating that higher interest rates have been more than
offset by other factors.
As a result of the opposing movements in share prices (down) and NAVs (up),
these companies are now trading at meaningful discounts to their published
asset values, while also offering high dividend yields well covered by cash
flows.
The portfolio’s holdings in North American yieldcos also lost value, with
Clearway Energy’s shares falling by 9.8%. Likewise, Atlantica Sustainable
Infrastructure fell by 9.5%. UK listed US Solar Fund fell by 18.5%. The latter
two have undertaken strategic reviews in the half year, and while
Atlantica’s is still in progress, US Solar Fund’s Board has concluded that
the current market backdrop is not conducive to a sale of the company or its
assets. It will however commence a share buyback programme.
PORTFOLIO SECTOR ALLOCATION
30 June 2023 31 December 2022
Yieldcos & funds 38.1% 38.9%
Renewable energy developers 32.7% 29.9%
Renewable focused utilities 8.3% 9.5%
Energy storage 6.9% 9.0%
Biomass generation and production 6.0% 6.8%
Renewable technology and service 3.3% 2.2%
Electricity networks 2.6% 2.3%
Renewable financing and energy efficiency 1.3% 0.0%
Waste to energy 0.9% 1.3%
Numbers may not sum to 100% due to rounding
Source: PFM Ltd
Renewable Energy Developers
The portfolio contains a larger number of investments in renewable development
companies than yieldcos, although the average investment size is smaller.
Concentrating on the larger holdings, the position in RWE’s shares fell by
6.5% despite reporting excellent results for both 2022 and the first quarter
of 2023.
Spanish solar developer, Grenergy Renovables was one of the few gainers in the
portfolio, its shares improving by 1.7%. Grenergy sold one of its development
projects at a good price and sentiment was also improved following a bid for
peer company OPD Energy, also owned, but with a smaller weighting. As a result
of the bid, OPD’s shares gained 49.0% over the six months. The bid was
pre-accepted by its major shareholders and illustrates the discrepancy between
private and public market valuations in the renewable energy sector.
Also listed in Spain, global developer Acciona Energias saw its shares fall by
15.3% despite exceptional 2022 financial results, with net earnings more than
doubling from 2021. Norway listed Bonheur recorded a share price fall of 9.4%,
with a fourfold increase in 2022 net earnings over 2021 doing little to help
the stock. Aside from renewable energy, Bonheur also owns offshore wind
turbine installation vessels, a market which looks to become increasingly
under-supplied, plus the Fred Olsen Cruise line business. Both these divisions
should see improved earnings in coming years.
Northland Power is a global renewable developer, with a particular focus on
offshore wind. 2022 results increased sharply on higher power prices received
by their three North Sea offshore wind farms, and 2023 should see the
completion of new onshore wind assets in the US, plus a large solar farm in
Mexico. Beyond that, Northland is developing sizable offshore wind projects in
the Baltic Sea off Poland, and off Taiwan. These are expected to commence
commercial operation over 2026 and 2027. Northland’s shares fell by 25.6%
over the half year.
PMGR has held the shares of Estonia-listed Baltic developer Enefit Green since
its listing in October 2021, and one of Enefit’s wind farms is featured on
the cover of this report. It has been a successful investment to date, showing
a good gain over book cost, and aims to more than double operating capacity by
the end of 2025. Its shares managed to hold steady over the first half of the
year.
PORTFOLIO GEOGRAPHIC ALLOCATION
June 2023 December 2022
United Kingdom 33.70% 36.26%
Europe (excluding UK) 32.74% 30.72%
Global 21.35% 18.86%
North America 7.69% 9.16%
Latin America 2.39% 1.90%
China 2.13% 3.11%
Source: PFM Ltd
Other sectors
Biomass producer and generator Drax Group reported very strong earnings
momentum in 2022 (adjusted net earnings up almost fourfold compared to 2021),
and this momentum should continue into 2023 and 2024, benefitting from forward
power sales already locked in at attractive prices. The UK Government is yet
to decide on possible offtake contracts for a carbon capture plant investment
at the Drax Power station site, however the company has now shared investment
plans for biomass power generation with carbon capture in the US, the returns
on which look both very attractive while also being less politically
contentious. Drax’s shares fell 17.5% in the first half of the year.
Ever higher levels of intermittent renewable energy production mean a greater
requirement for energy storage assets to match power supply with demand. For
instance, pumped hydro storage assets, of the sort owned within the portfolio
by SSE and Drax Group, have seen very good results in recent years and both
companies aim to expand these assets. However, battery storage is quicker and
cheaper to build, and can also provide frequency regulation services which
hydro is not technically able to do. However, the three battery storage funds
held, Harmony Energy, Gore Street Energy and Gresham House Energy Storage, all
lost value in the half year, with their shares falling by 15.0%, 15.5% and
10.3% respectively. All three now trade on material discounts to NAV.
The Renewable focussed utilities segment was, by some margin, the best
performing section of the portfolio. The Trust holds SSE in the UK, Iberdrola
in Spain, and Algonquin Power & Utilities in North America. Their shares
increased by 7.5%, 9.3% and 23.5% respectively. SSE out-performed market
assumptions for its March 2023 results, while also announcing an almost 50%
increase in its investment plan to 2027 together with faster predicted
earnings growth. Algonquin saw a recovery in its share price following the
poor performance seen in the latter part of 2022.
Income
Strong underlying earnings have manifested in higher dividends received by the
Trust. Notable increases include Drax Group, which increased its full year
dividend by 11.7%, Acciona Energias increased by 150.0%, Bonheur’s payment
increased by 16.3%, and Enefit Green by 37.7%. Dividends paid by the UK listed
yieldcos sector tend to have high correlation to inflation, and 2023 should
see good dividend increases based on targets announced during the first half.
The only company to cut its dividend was waste to energy company China
Everbright, where lower construction revenues meant lower earnings. Its 2022
full year dividend was reduced by 29.4% compared to 2021. However, the other
Chinese position, China Suntien Green Energy, managed to increase its dividend
by 15.6%.
Total income received during the half year was £1.15m, an increase of 5.9%.
Currency
The portfolio was largely hedged against adverse movements in the Euro and
Hong Kong Dollar during the half year, and currency hedging profits of £0.6m
were recorded. Given sterling’s recent strength against the Euro, the Euro
hedge has now been removed although the currency situation remains under
review.
Portfolio activity
Investment activity levels were relatively modest over the half year, with
purchases of £4.7m and sales also of £4.7m.
Outlook
European power prices have now fallen back to more normal levels although
remain substantially higher than levels seen historically. I believe that
higher power pricing is a structural shift, brought about by changes in the
gas market, carbon pricing, and a higher cost of capital for energy companies.
Given share price movements, it is evident that this is not necessarily a view
held by financial markets, and this creates potential opportunities for
renewable energy investors.
Further, the climate agenda is only increasing in importance, and governments
have acted to increase targets for renewable energy production, not least the
EU’s RePower EU programme, the UK Government’s ambitions for offshore
wind, and the US Government’s targets contained within the Inflation
Reduction Act.
Macroeconomic headwinds remain for the time being, but leading indicators give
hope that inflation pressures are now easing, including deflationary trends in
China and sharply falling money supply in the West. We hope, therefore, for an
improved performance in the second half.
James Smith
Premier Fund Managers Limited
1 August 2023
INVESTMENT PORTFOLIO
at 30 June 2023
Company Activity Country Value £000 % of total investments Ranking June 2023 Ranking December 2022
Greencoat UK Wind Yieldcos & funds United Kingdom 2,900 6.6 1 2
RWE Renewable energy developers Europe (ex. UK) 2,736 6.2 2 4
NextEnergy Solar Fund Yieldcos & funds United Kingdom 2,617 6.0 3 3
Drax Group Biomass generation and production United Kingdom 2,610 5.9 4 1
Octopus Renewable Infrastructure Yieldcos & funds Europe (ex. UK) 2,498 5.7 5 5
Aquila European Renewables Yieldcos & funds Europe (ex. UK) 2,291 5.2 6 6
Atlantica Sustainable Infrastructure Yieldcos & funds Global 2,026 4.6 7 7
Grenergy Renovables Renewable energy developers Global 1,815 4.1 8 11
Clearway Energy ‘A’ Yieldcos & funds North America 1,783 4.1 9 10
SSE Renewable focused utilities United Kingdom 1,657 3.8 10 15
Foresight Solar Fund Yieldcos & funds United Kingdom 1,566 3.6 11 12
Bonheur Renewable energy developers Europe (ex. UK) 1,527 3.5 12 16
Harmony Energy Income Trust (incl. ‘C’ Shares) Energy storage United Kingdom 1,508 3.4 13 9
Corp. Acciona Energias Renovables Renewable energy developers Europe (ex. UK) 1,313 3.0 14 14
National Grid Electricity networks Global 1,144 2.6 15 18
Northland Power Renewable energy developers Global 1,032 2.3 16 17
Opdenergy Renewable energy developers Global 1,029 2.3 17 30
Iberdrola Renewable focused utilities Global 1,025 2.3 18 8
Algonquin Power and Utilities Renewable focused utilities North America 974 2.2 19 19
Enefit Green Renewable energy developers Europe (ex. UK) 822 1.9 20 27
Gore Street Energy Storage Fund Energy storage United Kingdom 797 1.8 21 22
Cloudberry Clean Energy Renewable energy developers Europe (ex. UK) 751 1.7 22 29
Gresham House Energy Storage Fund Energy storage United Kingdom 715 1.6 23 13
Eneti Renewable technology and service Global 713 1.6 24 32
Cadeler Renewable technology and service Europe (ex. UK) 593 1.3 25 38
China Suntien Green Energy Renewable energy developers China 562 1.3 26 20
Greencoat Renewables Yieldcos & funds Europe (ex. UK) 513 1.2 27 24
US Solar Fund Yieldcos & funds North America 508 1.2 28 26
7C Solarparken Renewable energy developers Europe (ex. UK) 505 1.1 29 25
Omega Energia Renewable energy developers Latin America 455 1.0 30 31
MPC Energy Solutions Renewable energy developers Latin America 442 1.0 31 28
SDCL Energy Efficiency Income Trust Renewable financing and energy efficiency Global 371 0.8 32 –
China Everbright Environment Waste to energy China 371 0.8 33 23
GreenVolt Renewable energy developers Europe (ex. UK) 288 0.7 34 40
Solaria Energía y Medio Ambiente Renewable energy developers Europe (ex. UK) 241 0.5 35 39
Atrato Onsite Energy Renewable energy developers United Kingdom 224 0.5 36 33
Boralex Renewable energy developers Global 214 0.5 37 37
GCP Infrastructure Renewable financing and energy efficiency United Kingdom 195 0.4 38 –
Fusion Fuel Green (incl. warrants) Renewable technology and service Europe (ex. UK) 155 0.4 39 34
Polaris Renewable Energy Renewable energy developers Latin America 150 0.4 40 –
Innergex Renewable Renewable energy developers North America 109 0.3 41 41
Clearvise Renewable energy developers Europe (ex. UK) 102 0.3 42 45
Alternus Energy Renewable energy developers Europe (ex. UK) 34 0.2 43 –
43,881 99.9
PMGR Securities 2025 PLC ZDP subsidiary United Kingdom 50 0.1
Total investments 43,931 100.0
INTERIM MANAGEMENT REPORT
Premier Miton Global Renewables Trust PLC is required to make the following
disclosures in its Half Year Report:
PRINCIPAL RISKS AND UNCERTAINTIES
The Board believes that the principal risks and uncertainties faced by the
Company continue to fall into the following categories:
• Structure of the Company and gearing
• Repayment of ZDP Shares
• Dividend levels
• Currency risk
• Liquidity risk
• Market price risk
• Discount volatility
• Operational risk
• Accounting, legal and regulatory risk
• Political intervention
• Industry regulation
• Geopolitical risk
• Climate risk
Information on each of these, save for Repayment of ZDP Shares, is given in
the Strategic Report in the Annual Report for the year ended 31 December 2022.
Attention is further drawn to the new 2025 ZDP Shares’ liability falling due
on 28 November 2025, the repayment of which stands in preference to the
entitlements of Ordinary Shares. A fall in value of the Company’s portfolio
around that time could have a material adverse effect on the value of the
Ordinary Shares.
RELATED PARTY TRANSACTIONS
The Directors are recognised as a related party under the Listing Rules and
during the six months to 30 June 2023 fees paid to Directors of the Company
totalled £39,860 (six months ended 30 June 2022: £37,700 and year to 31
December 2022: £75,375).
GOING CONCERN
The Directors believe that, having considered the Company’s investment
objectives (shown on page 1), risk management policies and procedures, nature
of portfolio and income and expense projections, the Company has adequate
resources, an appropriate financial structure and suitable management
arrangements in place to continue in operational existence for a period of at
least 12 months from the date these financial statements were approved. For
these reasons, they consider that the use of the going concern basis is
appropriate. The risks that the Directors considered most likely to adversely
affect the Company’s available resources over this period were a significant
fall in the valuation or a reduction in the liquidity of the Company’s
investment portfolio.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the Half Year Report, in
accordance with applicable law and regulations. The Directors confirm that, to
the best of their knowledge:
• The condensed set of Financial Statements within the Half Year Report has
been prepared in accordance with International Accounting Standards in
conformity with the requirements of the Companies Act 2006 and applicable law;
and
• The Interim Management Report includes a fair review of the information
required by 4.2.7R (indication of important events during the first six months
of the year) and 4.2.8R (disclosure of related party transactions and changes
therein) of the FCA’s Disclosure and Transparency Rules.
For and on behalf of the Board
Gillian Nott OBE
Chair
1 August 2023
DIRECTORS AND ADVISERS
Directors
Gillian Nott OBE – Chair
Melville Trimble – Chair of the Audit Committee
Victoria Muir – Chair of the Remuneration Committee
Alternative Investment Fund Manager (“AIFM”)
Premier Portfolio Managers Limited
Eastgate Court
High Street
Guildford
Surrey GU1 3DE
Telephone: 01483 306 090
www.premiermiton.com
Authorised and regulated by the Financial Conduct Authority (“FCA”)
Investment Manager
Premier Fund Managers Limited
Eastgate Court
High Street
Guildford
Surrey GU1 3DE
Telephone: 01483 306 090
www.premiermiton.com
Authorised and regulated by the
Financial Conduct Authority
Secretary and Registered Office
Link Company Matters Limited
6th Floor
65 Gresham Street
London EC2V 7NQ
Registrar
Link Group
The Registry
Central Square
29 Wellington Street
Leeds LS1 4DL
Telephone: 0371 664 0300*
Overseas: +44 (0) 371 664 0300*
E-mail: shareholderenquiries@linkgroup.co.uk
www.signalshares.com
Depositary
Northern Trust Investor Services Limited
50 Bank Street
Canary Wharf
London E14 5NT
Authorised by the Prudential Regulation Authority (“PRA”) and regulated by
the FCA and PRA
Custodian
The Northern Trust Company
50 Bank Street
Canary Wharf
London E14 5NT
Auditor
KPMG LLP
15 Canada Square
London E14 5GL
(resigned 3 July 2023)
Haysmacintyre LLP
10 Queen Street Place
London EC4R 1AG
(appointed 13 July 2023)
Tax Advisor
Crowe U.K. LLP
55 Ludgate Hill
London EC4M 7JW
Stockbroker
finnCap Capital Markets
One Bartholomew Close
London EC1A 7BL
Telephone: 0207 220 0500
Ordinary Shares
SEDOL: 3353790GB
LSE: PMGR
Zero Dividend Preference Shares
SEDOL: BNG43G3GB
LSE: PMGZ
Global Intermediary Identification Number
GIIN: W6S9MG.00000.LE.826
*Calls are charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable
international rate. The Registrar is open between 09:00 - 17:30 Monday to
Friday excluding public holidays in England and Wales.
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