The Renewables Infrastructure Group: April 2026 Update

• InfraRed Capital Partners, the trust’s manager, has over three decades of experience in the industry

• The trust aims to provide investors with long-term, stable dividends whilst preserving the capital value of its investment portfolio.

• 2025 was a challenging year for the sector with the trust’s net asset value (NAV) and share price both falling compared to 2024. Despite this, TRIG has met its annual dividend target and maintained it for 2026.

How it fits in a portfolio

The Renewables Infrastructure Group Ltd (TRIG) aims to provide investors with long-term, stable dividends whilst preserving the capital value of its investment portfolio. It invests in a diversified mix of renewable infrastructure assets that contribute towards a net zero future. This includes onshore and offshore wind farms, solar parks and battery storage projects in the UK and Europe.

The trust could diversify an income-focused investment portfolio, as well as provide some shelter against inflation. Investors in investment trusts should be aware the trust can trade at a discount or a premium to its net asset value (NAV).

Investors should remember that investing in a single sector like renewable infrastructure is a higher-risk approach compared to a more diversified one. We think investment trusts investing in a specific sector should usually only form a small part of a well-diversified investment portfolio.

Manager

InfraRed Capital Partners, or InfraRed, is the investment manager for TRIG and responsible for the trust’s day-to-day management. InfraRed is an international infrastructure asset manager with over 25 years’ experience of investing in the asset class. Its team of more than 160 professionals operates from offices all over the world.

Day-to-day monitoring and oversight of operations for the infrastructure in the trust is carried out by TRIG’s operations manager, Renewable Energy Systems (RES). RES is the world’s largest independent renewable energy company, working across 24 countries and active in wind, solar, energy storage, green hydrogen, transmission, and distribution.

As with any investment trust, there’s also a board that oversees the company management for its shareholders. With five members it has a broad range of financial and investment experience which should ensure it’s able to hold the trust managers to account.

Process

In line with TRIG’s aim to generate sustainable returns from a diversified portfolio of renewable energy assets, the trust invests in four main areas: onshore wind, offshore wind, solar and battery. Onshore wind farms make up 47% of the trust, offshore wind 32%, solar parks 13% and battery storage 8%.

European governments operate certain regulatory support schemes for renewable energy, which are directly linked to a measure of inflation. Over the next 10 years, 56% of TRIG’s projected revenues are linked to inflation. This provides some protection against rising prices.

From April 2026, the UK government will change the inflation measure used in one of its support schemes from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI). CPI is usually lower, so this will reduce the inflation-linked revenue for some of the trust’s assets.

TRIG invests in different types of renewable assets across several countries, so the managers can adapt to changing policies and invest where they see the best opportunities. However, investors should be aware that regulatory risk can be greater in this sector, and any changes in regulation could impact returns.

Most of the trust’s assets (60%) are based in the UK, with the rest spread across Europe, including Sweden, France, Germany and Spain. The trust’s top ten holdings make up around half of its assets, which means these investments can have a big impact on overall returns and this can increase risk.

While the trust mainly invests in wind farms, the managers plan to increase exposure to solar and battery storage over time. They’ll do this by selling selected wind farms and investing more in upcoming battery projects.

Electricity demand is expected to keep rising and the transition towards cleaner energy continues to be a long-term investment theme. The rapid growth of Artificial Intelligence (AI) is adding to this demand as AI data centres use large amounts of electricity. TRIG is positioning the portfolio to benefit from this trend, as batteries will be essential for storing energy, and to increase diversification.

Over the last financial year (to end of December 2025), the trust has made progress on its battery storage projects. In the UK, the Ryton project is in the final stages of construction while another project, Spennymoor, is underway. The trust also started its first repowering project at an onshore wind farm in France. Repowering involves replacing old wind turbines with newer more efficient ones to increase the amount of electricity that the wind farm can generate.

In addition, the trust sold a 15% stake in a German offshore wind farm for £84mn, which was at a 9% premium to its previous valuation. The trust uses gearing (borrowing to invest) and derivatives which may increase risk. At the end of December 2025, gearing was at 37%.

Culture

TRIG was one of the first investment companies investing in renewable energy infrastructure to be listed on the London Stock Exchange. It launched in 2013, growing from £300mn then to £2.5bn today, and is now part of the FTSE 250 index. TRIG delegates the day-to-day running of the investment company to InfraRed, and the operation of the assets to Renewable Energy Systems (RES).

InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. InfraRed represents the infrastructure equity arm of SLC Management.

RES is the world’s largest independent renewable energy company with over 40 years’ experience delivering renewable energy projects across the globe.

ESG

Renewable energy generation and storage is an asset class which is naturally compatible with sustainability objectives. Generating electricity from renewable sources is an integral part of the transition to net zero, and energy storage helps to balance the electricity grid when renewables are not generating electricity. Both should help us to move away from generating electricity from fossil fuels.

TRIG has four sustainability goals which they look to achieve with every investment they make. These are mitigating climate change, preserving the natural environment, positively impacting the communities in which they work and maintaining ethics and integrity in governance.

TRIG publishes an annual sustainability report which can be found on their website.

Cost

The ongoing annual charge over the trust’s financial year to 31 December 2025 was 0.94%, down from 1.04% for the previous year. This was mainly due to the reduction in management fees from April 2025. Investors should refer to the latest annual reports and accounts, and Key Investor Information Document for details of the risks and charging structure.

We recently made some changes to the amount clients pay to invest with us. Find out more about these changes

The annual charge to hold investment trusts in the HL ISA, SIPP or Fund & Share Account is 0.35% (capped at £150 p.a. in each account) and 0.25% in the HL Lifetime ISA (capped at £45 p.a.). There are no charges from HL to hold them within the HL Junior ISA. As investment trusts trade like shares, both a buy and sell instruction will be subject to the HL share dealing charges.

Performance

Since the trust’s launch in July 2013 it’s returned 41.18%* in share price terms for shareholders.

Most of its long-term return has come from dividends, with the trust having a good track record of paying an income. Past performance isn’t a guide to the future.

In the trust’s last financial year to 31 December 2025, its share price fell 11.39% compared with a 0.92% rise for the AIC Investment Trust – Renewable Energy Infrastructure peer group. The NAV return over the same period was -3.9%.

The discount (the difference between the trust’s share price and NAV) widened, averaging 28.27% during the year, up from 18.41% the year before. At the time of writing, the trust trades at a discount of 38.57%.

Most of the fall in NAV was due to lower power prices, unexpected grid outages and the wind farms producing less electricity than expected, as wind speeds were much lower in the first half of the year.

The move from RPI to CPI for some fixed revenues led the managers to reduce their future revenue forecasts, which also lowered the NAV. However the impact was smaller compared to other trusts in the sector because TRIG has less exposure to these revenues given its more diversified approach.

During 2025 the managers sold £84mn of assets and bought back £57mn of shares. Both helped increase the NAV and offset some of the weakness from other factors.

The trust paid out £182mn of dividends over the year. This equates to a dividend per share of 7.55p and a dividend yield at the end of 2025 of 11%. For the financial year ending 31 December 2026 the board have maintained the dividend target at 7.55p. Remember that dividends are variable and not guaranteed and yields are not a reliable indicator of future income.