Hardman & Co Insight: Quoted UK Infrastructure and Renewable Energy – Prospects for 2023
After a mixed 2022 for the 31 quoted Infrastructure Investment Companies (IICs) and the Renewable Energy Infrastructure Funds (REIFs), Hardman and Co reassesses the various challenges facing these stocks, five of whom – HICL, 3i Infrastructure, INPP, Greencoat UK Wind and TRIG - have market capitalisations of over £2.8bn. In particular, UK inflation of ca.10%, high energy prices (despite the recent sharp falls in spot gas prices) and rising interest rates are all impacting these quoted funds.In 2022, only 10 of the 31 stocks saw their share prices rise. While energy price movements directly impacted those funds operating renewable generation plants, rising interest rates was a more general drag on the 31-strong sector. As such, net asset values (NAVs) were eroded by increased assumed discount rates: the NAV changes during 2022 varied significantly across the 31 funds. But their dividend payments held up, with no sector dividend cuts. Nevertheless, virtually all the dividend increases were nominal, rather than real - only Greencoat UK Wind has an inflation-linked dividend policy.
We are a rapidly growing, innovative corporate research & consultancy business, based in London, serving the needs of both public and private companies.
Our expert team of sector analysts and market professionals collectively have over 400 years of experience. This depth of knowledge and a reputation for integrity have built trust with investors. With effective communication and precision distribution, we help companies disseminate their investment message to interested investors, as well as advise them on strategy.
Our smaller, boutique structure allows us to provide first-class customer service and to deliver a wide range of ad-hoc services for multiple clients with different needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.