Last checked at 16 Mar 2023 12:10
London, UK, 16 March 2023
Edison issues review on Premier Miton Global Renewables Trust
(PMGR)
The imposition of additional taxes on energy companies by UK and European governments in the last quarter of 2022, together with accompanying anticipation, resulted in a very volatile year for the listed renewables sector. Reflecting uncertainty in 2022, Premier Miton Global Renewables Trust's (PMGR's) performance has also been volatile. During the last 12 months, the NAV total return was -8.4%, further depressed by exposure to China, now reduced to 3.1% of the portfolio (at end February 2023). The share price total return was -10.4% because of the gearing effect (both returns in sterling to end February 2023). The manager, James Smith, has responded by restructuring the portfolio away from Chinese holdings towards higher-yielding UK and European companies. He believes that the share prices of renewable companies should start to rise as uncertainty around extra taxation is removed and the market acknowledges the industry's strong fundamentals.
FY21 and FY22 dividends were fully covered by income and, given ample revenue reserves (c 7.0p per share, almost 1.0x the historical annual dividend), have scope to grow. The manager expects higher income per share for FY23 (7.2p in FY22). The fund is small and highly geared (which potential investors may see in a negative light). The 17.7% discount to NAV remains wider than the three-year average of 9.0%, reflecting investors' cautious attitude towards the renewable energy sector, as investors value it as bond proxy, but may present a buying opportunity at these levels, should sentiment improve.
Click here to view the full report or here to sign up to receive research as it is published.
All reports published by Edison are available to download free of charge from its website
www.edisongroup.com
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.
Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Victoria Chernykh +44 (0)20 3077 5700 investmenttrusts@edisongroup.com
Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn www.linkedin.com/company/edison-group-/
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv