The Fund recorded a marginal 0.38% decline in July (C Accumulation GBP) and has traded broadly flat over the past two months following a period of strong positive momentum.

The number of underlying contributors and detractors to overall performance was broadly evenly split. In a continuation of recent dynamics, the portfolio’s UK-listed renewable energy generators generally led in terms of positive performance, while US and Canadian listed names provided a headwind.

Greencoat UK Wind, a high conviction position within the portfolio, was the single greatest contributor to performance with a 10.1% total return in July. The company reported an encouraging set of interim results with first half EBITDA +23% at £353m and net cash generation +36% at £222m driven by output ahead of budget and elevated power prices. Greencoat locked in 1TWh of short-term price fixes during the period and a further 0.5TWh post period end to capitalise on firm electricity pricing resulting from geopolitical events in the Middle East. Over the next three years, the company sees the opportunity to reinvest £500m-£600m of excess cash flow in repowering projects, land lease extensions, and new late-stage construction assets. The company’s ability to invest for growth is a key message to the market. The Renewables Infrastructure Group (+4.3%), Greencoat Renewables (+5.1% GBP-adj.), and NextEnergy Solar (+6.5%) all contributed well during the period.

In an unexpected move, given a recently announced strategy refresh, and having evaluated alternative options to maximise value for shareholders, the board of NextEnergy Solar announced the commencement of a Formal Sales Process. While the recent sale of Bluefield Solar Income at a single-digit discount to NAV sets a precedent, we are cognisant that NextEnergy Solar is likely to be a more complicated entity for any potential acquirer. Considerations include its broader geographic exposure, its capital structure, and its co-investment in private vehicles.

Clearway Energy Inc. (-8.6%, GBP-adj.) and Brookfield Renewables Corp. (-11.6% GBP-adj.) were the standout detractors to performance. In contrast to its share price performance, Brookfield delivered record financial results in Q2 2026, with FFO +13% driven by strong operating performance alongside growth from development activities (particularly wind and solar) and asset recycling. The company delivered ~1,280MW of new capacity in Q2, taking the H1 total to ~3,100MW – the highest H1 capacity delivery in its history. Share price weakness in Brookfield and Clearway creates an opportunity to add to core positions at attractive levels while still capturing sizeable Q3 dividends.

Several positions were reduced in order to raise cash. Notable reductions included Bluefield Solar and Boralex at marginal discounts to ultimate takeover prices, and XPLR Infrastructure and Foresight Environmental Infrastructure following strong relative performance. (XPLR sold off sharply towards period end, and sell orders occurred in advance of this reversal.)