Bluefield Solar Income Fund – Fundamentals shine despite discount

The manger comments that, in common with the other trusts in the renewable energy sector, the last six months have continued what has been a challenging period for the Bluefield Solar Income Fund (BSIF). It adds that the trust’s ongoing fundamental performance has failed to reverse a steady slide in its share price which began back in May 2023. Despite this, it says the company has continued to deliver solid NAV growth and market-leading shareholder distributions thanks to a range of contractual arrangements that underpin its assets.

Positively, the manager notes, the falling share price does not appear to be a reflection on the trust itself, but rather broader macro-economic conditions and negative sentiment surrounding UK companies and renewable energy infrastructure in particular. It says that the board has signalled its dissatisfaction with the situation by authorising a £20m share buyback, which is currently underway. The manager adds that with growth accelerating and a recently announced strategic partnership providing an avenue for the ongoing development of its pipeline, the outlook for the trust remains attractive, as does a well-covered dividend yield approaching 9%.