While global capital markets remained volatile owing to geo-political tensions in the Middle East, the strategy recorded a 2.24% gain in April (C Accumulation GBP), reasserting more positive momentum after a marginal gain in March.

Most positions contributed to positive performance, although the spread of returns diverged significantly. HA Sustainable Infrastructure Capital, which is a large allocation within the portfolio, proved the greatest contributor and recorded a 12.38% total return (GBP adj.). While there was no specific catalyst, the company’s share price momentum has been strong year-to-date and has benefitted from a steady flow of analyst upgrades. 

Other significant contributors included UK-listed CEICs; notably The Renewable Infrastructure Group, Octopus Renewables Infrastructure, Greencoat Renewables, and Foresight Solar Income.

Notable detractors were contained to two names: Brookfield Renewables Corp. and Aquila European Renewables. Brookfield fell very sharply in the final days of April amid atypically high trading volumes to end the month down 11.39% (GBP-adj.). On 1st May, the company reported “record financial results” for Q1 2026 with FFO of $375m representing a 19% year-on year increase and the shares have recovered some ground. 

The worst individual performer was Aquila European Renewables (-25.51%%, GBP-adj.) following a set of full year results which included reductions to forecast power prices across relevant markets, operational performance below budget, and an increase in the portfolio’s overall discount rate. The company has returned capital to shareholders in two tranches as part of its ongoing winddown, funded by the disposal of Portuguese hydro assets and onshore wind assets in Denmark and Greece. However, the remaining portfolio of two onshore windfarms in the Nordics plus five solar assets across Iberia have idiosyncratic issues that will likely need to be addressed before further progress in asset sales. The Fund’s remaining exposure to the company is very modest (0.94% at 30/04/26) and so its potential influence on overall performance is limited.

The most significant event during the period, impacting UK renewable energy generators, was news that the UK government intends to remove
Carbon Price Support from April 2028 alongside plans to delink electricity costs from gas prices (gas being the margin al price setter for electricity most of the time). 

While a removal of CPS - a carbon tax paid by emitters which results in higher electricity prices - was already factored into the price curves used by renewable energy generators, the timing of the removal is generally more aggressive than expected and will be a slight detractor to future cash flow expectations. For context, Greencoat UK Wind and The Renewables Infrastructure Group expect the impact on NAV per share to be -2.1p (~1.5%) and -0.3p (~0.3%), respectively. 

With regards to delinking electricity costs from gas prices – the stated aim being to reduce volatility in electricity prices for consumers – the government has proposed an extension of Contracts for Differences to operational ROC-accredited as sets (to be called “Wholesale CfDs”) whereby generators can voluntarily accept WCfDs, retain ROC payments and remove merchant price exposure. Details will not be forthcoming for some time, but there is a reasonable chance that WCfDs could be a net positive (or at least not a negative): while price and duration are yet to be announced, they will need to be sufficient to encourage generators to adopt them, and the prospect of greater revenue certainty could potentially prove beneficial in terms of lowering both the discount rate ascribed to future cash flows and financing costs.

Alongside marginal reductions across a range of positions, more substantial sales were actioned in some of the Fund’s larger allocations, including Clearway Energy Inc., Greencoat UK Wind, HA Sustainable Infrastructure Capital, and The Renewables Infrastru cture Group. An incremental top-up was made to Redeia – the most recent addition to the portfolio.