The UK’s record-breaking summer has been good news for solar power but funds focused exclusively on wind have been faced with fairly low wind speeds. Of course, this situation may well reverse over the winter. John Laing Environmental Assets Group (JLEN) offers renewable energy investors the most diverse portfolio in its sector and hence a smoother ride. Its increased focus on anaerobic digestion, which we highlighted in our last note, adds another uncorrelated source of returns backed by high levels of government subsidy.

Confident in the strength of JLEN’s portfolio, its board has set a dividend target of 6.51p for the current financial year; JLEN remains the highest yielding fund in its sector; currently 6.0% prospective.

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. It also aims 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.