- SDCL Energy Efficiency Income Trust has taken on significant assets since its 2018 IPO and has broadened its portfolio
- The evolution of the portfolio and its competition is worth considering
From the promise of attractive yields to shares trading at sometimes eye-watering premiums, the 16 investment trusts in the Association of Investment Companies' (AIC) Renewable Energy Infrastructure sector have much in common. But much like any equities that fit into a green infrastructure portfolio, they come in many different shapes and sizes. While better known names such as The Renewables Infrastructure Group (TRIG) invest in a diversified portfolio of renewable energy assets, newer entrants to the space often take a more specialist approach.
Examples include solar funds, energy storage trusts and portfolios with a focus on energy efficiency. In the latter case, teams often focus on reducing energy usage or making an asset more energy efficient, in exchange for contractual service payments. As with other renewable energy investments, doing this should produce a high and fairly predictable income.