In this interview, James Smith, fund manager of Premier Miton Global Renewables Trust (PMGR), reflects on the six months since the trust’s change from a broad infrastructure focus to a pure renewable energy mandate and considers the outlook for the renewables sector against a backdrop of increased global focus on reducing carbon emissions.
Key points include:
• The significance of the new US administration’s renewed focus on climate change and rejoining the Paris agreement.
• The outlook for power prices and whether fears of higher inflation should worry investors in renewables.
• How PMGR differs from other renewables funds and the benefits of a non-index approach.
• Why the sector is largely insulated from COVID-19-related dividend cuts and how this could benefit investors.
PMGR’s investment objectives are to achieve a high income and to realise long-term growth in the capital value of its portfolio. PMGR seeks to achieve these objectives by investing principally in the equity and equity-related securities of companies operating primarily in the renewable energy sectors, as well as other sustainable infrastructure investments. The trust is structurally geared via zero-dividend preference shares maturing in 2025