The Fund recorded a modest 0.30% gain in June, taking the total return during the first six months of 2026 to 14.37% (C Accumulation GBP). The number of underlying contributors and detractors to overall performance was broadly evenly split. However, geographic dispersion was evident, with UK listed renewable energy generators typically performing positively while US and Canadian listed names had a poor month. In the UK, corporate activity helped to refocus investor attention.

Notably (and highlighted in our prior commentary) on 1st June Bluefield Solar Income announced it had received an offer from Drax Group to acquire the entire issued share capital of Bluefield Solar for 92.574p per share in cash. Delivering a 16.5% total return, Bluefield was the individual greatest contributor to performance during the period as the shares trended close to the takeover price. Other UK names including Foresight Solar, Foresight Environmental Infrastructure, Octopus Renewables, Greencoat UK Wind, and NextEnergy Solar all firmed over the course of the month. 

Gresham House Energy Storage rallied 7.2% following the publication of an open letter from a large shareholder, PrimeStone Capital, calling for the sale of the business. While highly complementary of the management team on its operational delivery, the letter notes the muted market reaction to these achievements and the very large discount to NAV at which the shares trade. We sympathise with the sentiments expressed by PrimeStone. If public markets will not value such entities appropriately, private market opportunities could prove the best route to realise the inherent value. Despite the improvement in the share price, Gresham House Energy Storage still traded at a 22% discount to the latest 114.56p NAV (which is anticipated to increase once the June valuation is declared as three pipeline projects are expected to move into construction phase and will be factored in on a DCF basis) while last year Harmony Energy Income, a peer BESS player in the UK and a company held within the Fund at the time, was acquired at prevailing NAV. Elsewhere, transmission network exposures Redeia and Terna-Rete continued to perform well for the Fund.

North American holdings, including HA Sustainable Infrastructure Capital, Brookfield Renewables, Northland Power, and XPLR Infrastructure all lost value in June. Clearway Energy Inc. was the standout, however, recording a loss of 14.6% (GBP adj.) and was the main detractor from overall performance. There was no clear catalyst for the poor performance across these companies, although it is worth noting most have performed very well over the course of the year as a whole and some retracement was perhaps inevitable. Second quarter results announcements, starting in July, are not expected to contain any negative surprises and could provide the impetus for near-term recovery, in the Investment Manager’s view.

Bluefield Solar and Boralex were reduced to raise cash. Both companies represent cash proxies within the Fund at this stage, with very limited upside potential before they are both acquired and delisted.

Second quarter distributions

Income distributions relating to the second quarter of 2026, payable in July 2026, amounted to 2.1057p per C Income GBP unit and 1.8542p per I Income GBP unit. On this basis, second quarter distributions are materially higher when compared with the same period in 2025. Although the distributions include a non-recurring upwards accounting adjustment, the “natural” income element of the distribution was also higher year-on-year. As at 30th June, the Fund’s trailing 12-month yield was 5.54% for the C Income GBP units.