John Laing Environmental Assets Group – Anaerobic diversification

Unlike other listed renewable energy funds, John Laing Environmental Assets Group (JLEN) has exposure to waste and wastewater projects. A recent move into anaerobic digestion (see page 3) further differentiates it from its peer group and increases the diversification of its portfolio. The adviser likes this area as it is less exposed to the vagaries of power prices than other areas of the renewables market (a plus, given JLEN’s recent reduction in its estimates of future power prices). JLEN has announced plans to expand the company to take advantage of this and other opportunities.

Progressive dividend from investment in environmental infrastructure assets

JLEN aims to provide its shareholders with a sustainable dividend, paid quarterly, that increases progressively in line with inflation, and to preserve the capital value of its portfolio on a real basis over the long term. It invests in environmental infrastructure assets with predictable, wholly or partially index-linked cash flows, supported by long-term contracts or stable regulatory frameworks.

Environmental infrastructure comprises projects that use natural or waste resources or support more environmentally-friendly approaches to economic activity. This could involve the generation of renewable energy (including solar, wind, hydropower and biomass technologies), the supply and treatment of water, the treatment and processing of waste, and projects that promote energy efficiency.

JLEN : John Laing Environmental Assets Group – Anaerobic diversification