Tilney Sustainable Managed Portfolio Service has initiated a position in the SDCL Energy Efficiency Income Trust, as the team looks to diversify risks in the portfolios and focus more on saving energy across industries and sectors.
The team, which this month celebrates 10 years since the launch of the Sustainable Managed Portfolio Service, is focusing on funds and trusts that deliver positive impacts, particularly in the industrial area.
“The SDCL Energy Efficiency Income Trust, run by an experienced team and headed up by Jonathan Maxwell, has recently surpassed the £1bn market cap milestone, and we believe this is a positive reflection on its portfolio of 41 projects which are well diversified across sectors,” said Louie French, Manager of the Tilney Sustainable MPS.
“The team focuses on a range of energy efficiency methods, with key parts of the portfolio in Solar & Storage, Combined Heat and Power, Gas Distribution Networks and Industrial process efficiency solutions,” said French.
The trust, which targets a total return of 7-8% per annum and a 2021/2022 target dividend of 5.62p, recently carried out a capital raise that was oversubscribed.
“We feel this is a good time to add the trust to a number of our portfolios, allowing us to be well placed to generate returns for our clients in the demand side of energy efficiency,” French added.
Tilney Sustainable MPS’ addition of the SDCL Energy Efficiency Income Trust comes as the team celebrates the 10-year anniversary of the portfolios, marking it as one of the longest running sustainable MPS services in the market.
Since launch in 2011, the Tilney Sustainable MPS have consistently outperformed their peer group. For example, the Adventurous portfolio has delivered net annualised returns of 10.5% over the past decade, while the IA Mixed Investment 40—85% Shares and ARC Sterling Steady Growth have returned 8.2% and 7.3% respectively.
With six different portfolios, ranging from Conservative to Maximum Growth, the Tilney Sustainable MPS invests in portfolios that are able to demonstrate their ESG and sustainability credentials, with French and the team focusing on positive action with firms they invest in to move towards a greener, cleaner and more transparent environment.
“The world of sustainable investing has changed dramatically over the past decade, with a huge universe of funds available to investors. Funds with a sharp focus on sustainability can generate better returns than traditional investment products, and we look forward to seeing where the next 10 years takes us,” said French.