Downing Renewables and Infrastructure Trust – Ahead of expectations

The latest research note on the Downing Renewables & Infrastructure Trust (DORE) from Quoted Data by Marten & Co has been published. The note provides detailed analysis on the investment proposition and progress to date, which is already ahead of expectations.

"It is still early in the life of DORE, yet, with an early focus on Swedish hydropower – 51% of the portfolio at the end of March 2021 – complemented by a diverse portfolio of UK solar assets, it can already boast a portfolio that is clearly differentiated from its peers.

DORE’s NAV rose at the end of March, at a time when many other renewable energy funds were announcing NAV falls. It helps that DORE has a new portfolio, but as we explain, its exposure to the Swedish power market proved valuable too, underlining the rationale behind DORE’s policy of building a portfolio that is diversified by both technology and geography.

Assuming that DORE’s intended purchase of a Swedish multi-utility company (see page 8) and a proposed investment in a nearshore, shallow water wind farm – also in Sweden – go ahead as planned, DORE has more than allocated the proceeds from its IPO, well ahead of expectations.

It is intended that the balance will be financed with debt, enhancing DORE’s returns. The swift deployment of the IPO proceeds supports DORE’s near term dividend target and may even suggest that this could be exceeded. Yet, despite this string of good news, DORE is one of only two funds in its peer group trading at a discount to net asset value. The manager believes this presents an excellent entry point for investors seeking a diversified alternative to mainstream renewable infrastructure funds."

Read the full research note here

Investment Performance Information: Please remember that past performance is not necessarily a guide to the future and that the value of shares and the income from them can go down as well as up. Exchange rates may also cause the value of underlying overseas investments to go down as well as up.

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