Premier Miton Global Renewables Trust Plc - Half-year Report

04 August 2022

Premier Miton Global Renewables Trust Plc (the ‘Company’)

Legal Entity Identifier: 2138004SR19RBRGX6T68

Premier Miton Global Renewables Trust PLC's half report and accounts for the six months to 30 June 2022 is available at https://www.globalrenewablestrust.com/documents/.

It has also been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and is available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

PREMIER MITON

GLOBAL RENEWABLES

TRUST PLC

Half Year Report

for the six months

to 30 June 2022

INVESTMENT OBJECTIVES

The investment objectives of the Premier Miton Global Renewables Trust PLC are to achieve a high income from, and to realise long-term growth in the capital value of its portfolio. The Company seeks to achieve these objectives by investing principally in the equity and equity-related securities of companies operating primarily in the renewable energy sector, as well as other sustainable infrastructure investments.

GREEN ECONOMY – LONDON STOCK EXCHANGE

In January 2022, the Company received London Stock Exchange’s Green Economy Mark, a classification which is awarded to companies and funds that are driving the global green economy. To qualify for the Green Economy Mark, companies and funds must generate 50% or more of their total annual revenues from products and services that contribute to the global green economy.

PRI – PRINCIPLES FOR RESPONSIBLE INVESTMENT

The Fund Manager integrates Governance and Social responsibility into its investment process. Premier Miton is a signatory to the Principles for Responsible Investment, an organisation which encourages and supports its signatories to incorporate environmental, social, and governance factors into their investment and ownership decisions.

FE FUNDINFO – CROWN FUND RATING – 4 STARS

The Crown Fund Rating is a global quantitative rating that is based on a fund’s historical performance relative to an appropriate benchmark. The rating relies on three key measurements - alpha, volatility and consistent performance, to dictate the one-to-five Crown score. The ratings are designed to help investors distinguish funds that have superior performance in terms of stock picking, consistency and risk control.

COMPANY HIGHLIGHTS

for the six months to 30 June 2022

	Six months to	Year ended
	30 June	31 December
	2022	2021
Total Return Performance
Total Assets Total Return[1]	(1.5%)	19.8%
S&P Global Clean Energy Index (GBP)[2]	0.4%	(22.5%)
Ongoing charges[3]	1.71%	1.65%
	Six months to	Year ended
	30 June	31 December
	2022	2021	% change
Ordinary Share Returns
Net Asset Value per Ordinary Share (cum income)[4]	200.66p	210.60p	(4.7%)
Mid-market price per Ordinary Share	175.50p	196.50p	(10.7%)
Discount to Net Asset Value	(12.5%)	(6.7%)
Net Asset Value Total Return[5]	(3.1%)	26.5%
Share Price Total Return[2]	(8.9%)	30.7%

   

	Six months to	Six months to
	30 June	30 June
	2022	2021	% change
Returns and Dividends
Revenue Return per Ordinary Share	3.95p	4.45p	(11.2%)
Net Dividends declared per Ordinary Share	3.50p	3.50p	0.0%

   

Historic Full Year Dividends
	31 December	31 December
Dividends paid in respect of the year to:	2021	2020	% change
Dividend	7.00p	10.20p	(31.4%)

   

	Six months to	Year ended
	30 June	31 December
	2022	2021	% change
Zero Dividend Preference Share Returns
Net Asset Value per Zero Dividend Preference Share[4]	108.02p	105.44p	2.4%
Mid-market price per Zero Dividend Preference Share[2]	107.50p	107.50p	0.0%
(Discount)/premium to Net Asset Value	(0.5%)	2.0%

   

		As at	As at
		30 June	31 December
		2022	2021
Hurdle Rates (Per Annum)
Ordinary Shares
Hurdle rate to return the 30 June 2022 share price of 175.50p (December 2021: 196.50p) at 28 November 2025[6]	(0.6%)	0.7%
Zero Dividend Preference Shares
Hurdle rate to return the redemption share price for the 2025 ZDPs of 127.6111p at 28 November 2025[7]	(25.6%)	(23.1%)

   

	Six months to	Year ended
	30 June	31 December
	2022	2021	% change*
Balance Sheet
Gross Assets less Current Liabilities
(excluding Zero Dividend Preference Shares)	£52.0m	£53.4m	(2.7%)
Zero Dividend Preference Shares	(£15.4m)	(£15.0m)	(2.4%)
Equity Shareholders’ Funds	£36.6m	£38.4m	(4.7%)
Gearing on Ordinary Shares[8]	42.0%	39.0%
Zero Dividend Preference Share Cover (non-cumulative)[9]	2.68x	2.74x

[1] Source: Premier Fund Managers Ltd (“PFM Ltd”). Based on opening and closing total assets plus dividends marked “ex-dividend” within the period.

[2] Source: Bloomberg.

[3] Ongoing charges have been based on the Company’s management fees and other operating expenses as a percentage of gross assets less current liabilities over the period (excluding ZDPs’ accrued capital entitlement).

[4] Articles of Association Basis.

[5] Source: PFM Ltd. Based on opening and closing NAVs plus dividends marked “ex-dividend”.

[6] Source: PFM Ltd. The Ordinary Shares Hurdle Rate is the compound rate of growth of the total assets required each year to meet the Ordinary Share price at 30 June 2022.

[7] Source: PFM Ltd. The ZDP Shares Hurdle Rate is the compound rate that the total assets could decline each year until the predetermined redemption date, for ZDP shareholders still to receive the redemption entitlement.

[8] Source: PFM Ltd. Based on Zero Dividend Preference Shares divided by Ordinary Shareholders’ Equity at end of each period.

[9 Source PFM Ltd. Non-cumulative cover = Gross assets at period end divided by final repayment of ZDP Shares plus management fees charged to capital.

*% change is calculated on actual figures, and may be different from that which could be obtained by using rounded figures shown within this section.

CHAIRMAN’S STATEMENT

for the six months to 30 June 2022

Introduction

In the Chairman’s Statement within the 2021 Annual Report, I noted that the main headwind faced by markets in 2022 would likely be the extent to which inflation would prove to be more entrenched than transitory. In the event, it has become increasingly clear that inflation will have both a higher peak, and will last longer than was anticipated six months ago.

The underlying causes of the current high level of inflation are many, including supply deficiencies resulting from an ill-preparedness for post-Covid economic reopening, the expansion of the money supply, and higher commodity prices, partly resulting from the war in Ukraine. Central banks were caught behind the inflationary curve, and have been forced to react in a sharper way than they perhaps could have, if they had started to tighten monetary conditions at an earlier stage. The risk now is that, in order to maintain credibility, they go too far in raising rates, triggering, or exacerbating, an anticipated recession.

While the investment environment is undoubtedly challenging, I believe that the portfolio is well positioned, having exposures to energy markets and a good level of inflation protection within the underlying revenues of investee companies.

Performance

Equity markets have been weak in the first half of 2022 with both Europe and the US experiencing double-digit negative returns. The UK with its higher weighting to “old economy” energy and resource companies, fared slightly better but was still in negative territory.

The underlying performance of the Company was marginally behind its performance benchmark, the S&P Global Clean Energy Index, which recorded a positive return in sterling of 0.4%. PMGR’s capital structure means that market movements are amplified in the Ordinary Share Net Asset Value (“NAV”), and the NAV total return was negative 3.1%.

The Company benefitted from good performances in its UK holdings, an area to which the portfolio has a significant weighting. Offsetting this was weakness in the Chinese positions. In addition, the holding in Finnish generator Fortum was sold in the period at a substantial discount to the level at which it started the year. Fortum’s Russian investments, accounting for approximately 20% of profits, caused its shares to fall sharply. Following the sale, the portfolio has no investment exposure to Russia.

Unfortunately, and in common with many other investment trusts, the discount between the Company’s NAV per share and its share price increased, and was 12.5% at the end of June. PMGR’s share price fell by 10.7%, with a share price total return of negative 8.9% taking dividends into account.

Review of the six months

Russia’s war in Ukraine looks likely to continue for some time. Market reaction was at first muted, but the implications for global energy and food prices are now becoming apparent. Russia is responding to sanctions by restricting volumes of natural gas sent to Europe, and the outlook for supplies over the coming winter is uncertain.

Combined with a reduction in French nuclear output caused by technical outages for repairs, and higher prices for carbon emissions, it is unsurprising therefore, that European power prices have remained at exceptionally high levels. This will undoubtedly cause much hardship, and governments can be expected to seek ways to restrict “excess profitability” in the energy sector, including renewables. This may take the form of windfall taxes, or direct intervention in markets.

However, in order to secure a long-term future of energy independence from Russia, Europe has little choice but to accelerate the build out of renewable electricity facilities. We therefore expect that any actions against the renewable generation sector will be modest, so as not to discourage investment.

In this regard, the European commission published proposals to reduce reliance on Russian energy, removing obstacles to the permitting of new renewable energy assets, and to encourage the development of long-term corporate power purchase contracts. In total, it aims to almost triple the EU’s wind and solar generation capacities by 2030. In turn, the UK has increased its already ambitious targets for offshore wind.

High inflation is an overriding concern for markets. Here I would note that the majority of operating costs in the renewable energy sector are fixed. Capital costs for new build assets, including for equipment such as solar panels, or logistics such as shipping, which had increased in 2021, are now moderating. In any event, higher capital costs are more than offset by greater increases in electricity prices. Lastly, many revenue streams such as corporate power sales agreements, or government incentive mechanisms, are often inflation linked. Higher inflation can therefore be of benefit to many renewable energy companies.

Despite being relatively insulated against the issues described above, the Chinese market has also fallen, not helped by the government’s zero-Covid policy.

Finally, the last remaining holding that was “non-compliant” with the renewable energy investment policy, Indian coal generator OPG Power Ventures, was sold in the period.

Earnings and Dividends

Revenue return per Ordinary Share of 3.95p represented a fall of 11.2% on the 4.45p reported for the first half of 2021. This is mainly a result of the following:

Firstly, the sale of the position in Fortum, which paid a relatively large dividend only once a year in the first half. Reinvestment of the proceeds should mean that the loss of this dividend is recouped in the second half.

Secondly, the first half of 2021 contained the beneficial receipt of historic overseas tax reclaims, which did not occur in 2022.

Despite this, underlying revenue generation has been good. Companies have either increased or held their dividends, with dividend increases from the Trust’s larger Chinese investments being particularly encouraging. In addition, the strength of the US dollar, Hong Kong dollar (pegged to the US dollar), and Canadian dollar, has increased the sterling value of dividends received from investments denominated in those currencies.

On 30 June, the Trust paid a first interim dividend of 1.75p per share. The Board has declared a second interim dividend of 1.75p per share, to be paid on 30 September 2022 and will be marked ex-dividend on 1 September 2022. These dividends are consistent with those paid in 2021.

Change of brokership

Following a review of the Company’s brokership arrangements, the directors appointed finnCap Capital Markets, replacing Singer Capital Markets, as the Company’s stockbroker with effect from 15 March 2022. The directors remain committed to growing the size of the Company.

Outlook

Sadly, I expect the war in Ukraine to drag on for some time. It will take time for the full effects to be felt, and longer still for Europe to wean itself off Russian energy. In this environment, energy prices are likely to stay at elevated levels, and returns on renewable energy assets should therefore remain attractive.

The effect of the war in Ukraine on energy prices and inflation is not limited to Europe; it is having a global impact. In addition, the worldwide effort to lower carbon emissions is a fundamental shift that is driving investment in renewables. Hence, the company’s portfolio of a carefully selected number of stocks, diversified by region and technology, is well positioned to benefit from the increased global demand for renewable energy.

Gillian Nott OBE

Chairman

3 August 2022

INVESTMENT MANAGER’S REPORT

for the six months to 30 June 2022

Market review

In the first half of 2022, the renewable energy sector benefitted from some strong tailwinds, offset by a worsening economic environment.

As noted in the Chairman’s statement, the high electricity price environment is to the benefit of renewable energy companies, particularly in Europe, which is experiencing unprecedented gas and electricity prices. In addition, with governments more concerned than ever about energy security, domestic sources of energy such as renewables should see enhanced growth and political goodwill. Large energy users are increasingly looking to sign long-term contracts with renewable producers, not only for environmental reasons, but to lock in long term electricity purchases at a reasonable price.

Offsetting this has been the high inflation environment, against which can be attributed much of the poor performance of both equity and bond markets during the period.

PMGR’s investment strategy over the past 12 months has been to prioritise European and UK renewables, with a lower weighting to North America. UK and European renewable companies tend to have a higher degree of inflation linkage, and greater exposure to power prices, than their North American counterparts. North American renewables tend to sell power on long-term contracts with pre-determined price paths, resulting in a rather “bond-like” income stream. In consequence, their valuations can be expected to have a higher level of sensitivity to movements in interest rates.

This has, in the main, been a correct investment decision for the first half of 2022, and many of the larger European holdings have performed well. UK renewable companies have performed particularly well, rewarding the portfolio’s overweight position. By contrast, the US and Canadian holdings have lost value in local currency, although this has been almost exactly offset by the stronger dollar, with their sterling performance being about flat on average.

The biggest contributor to negative performance in the period were the three large Chinese holdings (China Suntien Green Energy, China Everbright Environment, and China Longyuan Power), discussed in more depth below. Harsh lockdown policies have undoubtedly hurt sentiment, and the strong dollar environment has encouraged foreign investors to repatriate capital back to the US. However, we continue to believe these are attractive investments, with positive operational environments and modest valuation metrics. Reflecting this, all three recorded very strong dividend increases in respect of 2021.

The other major negative in the period relates to Finnish nuclear and hydro generator, Fortum, a 4.3% holding at December 2021, sold at a loss in the period. While its core business has performed well, its Russian investments, accounting for approximately 20% of operating profit, left it very exposed on the Russian invasion of Ukraine. The portfolio has no Russian exposure following this sale.

Portfolio review

No major changes were made to the portfolio during the first half of 2022. The weighting to China fell on relative under-performance, while the UK increased on out-performance. Europe was level with the sale of Fortum offset by good performances in other holdings. North America was lower, on net sales of investments.

Listed renewable energy companies can be categorised into two broad groupings. Firstly, the investment companies, often referred to as yield companies or “yieldcos”, which usually acquire built, or construction ready, assets paying out the majority of cash-flow to investors, and raising capital through new equity. Secondly, integrated development companies, which develop projects from first inception, retaining some assets but raising capital through a combination of retained earnings and project sales.

Yieldcos & Funds

The increased investment in the UK yieldcos, undertaken in 2021, worked well in the period. Greencoat UK Wind was particularly strong, its shares increasing by 9.5%. Greencoat has a higher exposure to power markets than other UK renewable investment companies, with less hedging or long term power sales within its portfolio.

Likewise NextEnergy Solar Fund and the Foresight Solar Fund, also performed well, with share price gains of 7.3% and 15.2% respectively in the period.Both are diversifying from their core UK solar mandates, expanding into new geographies and related investment areas such as energy storage. We continue to believe that the long-term power price forecasts used (provided by third party consultancies) in the calculation of NAVs in the UK, are overly conservative and that NAVs may prove to be an understatement of eventual value. In addition, the UK renewable investment companies benefit from the inflation linked incentive schemes covering part of their revenues.

A new position in Octopus Renewable Infrastructure (“ORIT”) was started in the period. ORIT has a diversified portfolio of European assets, covering Finland, Sweden, Poland as well as the UK and Ireland, many of which are in construction.

The portfolio’s holdings in North American yieldcos were less successful, although share price falls were offset by positive currency movements. Atlantica Sustainable Infrastructure, Clearway Energy (A), and Transalta Renewables, saw their share prices fall by 9.8%, 4.5% and 12.3% respectively. We attribute these movements to valuation pressures resulting from increased yields and interest rates. Meanwhile, the companies continue to invest and report solid results.

PORTFOLIO SECTOR ALLOCATION

	December 2021	June 2022
Renewable energy developers	28.64%	32.35%
Yieldcos & funds	25.69%	32.11%
Renewable focused utilities	14.58%	9.36%
Energy storage	6.90%	8.21%
Biomass generation and production	7.30%	6.72%
Waste to energy	6.55%	5.69%
Renewable technology and service	2.79%	2.44%
Electricity networks	5.03%	2.25%
Carbon markets	1.20%	0.87%
Liquidation portfolio	1.32%	0.00%

Source: PFM Ltd

Renewable Energy Developers

PMGR’s two Chinese renewable energy developers, China Suntien Green Energy and China Longyuan Power, following an exceptionally strong 2021, both lost value in the first half of 2022, their shares falling by 34.2% and 16.7%. This was despite reporting 2021 earnings growth of 43.0% and 27.6%, and dividend growth in respect of 2021 of 22.8% and 25.0% respectively.

Europe is host to several excellent renewable energy developers. German listed RWE is a company that is making the transition from a predominantly fossil fuel based generator, to one of the world’s largest renewable companies, operating globally with a particular strength in offshore wind. RWE is aiming to invest Euro 50bn in its core renewable and flexible generation business by 2030, while at the same time managing a phase out of its coal, lignite, and nuclear generation assets. RWE reported excellent 2021 financial results, and has raised its 2022 expectations on the back of strong markets and continued growth. Its shares however fell 1.7% over the first half of the year.

In June 2021, Acciona, a Spanish company, spun out its renewables business, Acciona Energias, Acciona retaining an approximate 83% holding. Like RWE, Acciona Energias is a sizable, globally diversified, renewable developer. While the renewables subsidiary is the substantial majority of the business, Acciona also has various other businesses mainly focussed around infrastructure. Acciona has traded at a discount to the value implied by its renewables subsidiary, however this has fallen over the past year, and we have moved most of the position into the pure-play renewables business. Both shares performed well in the period.

We added to the position in Spanish listed global solar developer Grenergy, which has an extensive solar growth pipeline with a particularly strong position in both Spain and Chile. Its shares reacted well to higher power prices, gaining 16.8%.

Northland Power, a Canada based global renewables business mainly focussed on offshore wind (the construction of its most recent project being featured on the cover of this report), recorded a share price gain of 1.4% in Canadian dollars, although in sterling terms this translated to a gain of 11.5%.

There are an increasing number of quality European listed renewable developers. We have increased or maintained positions in MPC Energy Solutions (which is building a renewables portfolio concentrating on Central American and Caribbean), 7C Solarparken (mainly German solar), Bonheur (Scandinavian and UK wind, plus offshore installation vessels), and Enefit Green (Baltic renewables), together with several others. While not paying high dividends, they exhibit strong growth and benefit from higher energy prices.

PORTFOLIO GEOGRAPHIC ALLOCATION

	December 2021	June 2022
United Kingdom	27.92%	33.11%
Global	19.10%	20.35%
Europe (excluding UK)	17.74%	16.81%
China	19.11%	15.79%
North America	12.66%	11.47%
Latin America	2.14%	2.46%
India	1.33%	0.00%

Source: PFM Ltd

Other sectors

Biomass producer and generator, Drax Power, had a solid half, its shares increasing by 6.3%, although had been higher until rumours of the UK government imposing a windfall tax acted to dampen the market’s enthusiasm.

Waste to energy company, China Everbright Environment, was weak in common with the other Chinese holdings, falling by 26.0%. This was despite continued solid earnings, up 13.1% in 2021, with full year dividends up 13.3%

UK energy storage funds performed well, as the grid operator faces a difficult task in balancing the UK’s energy flows, made more volatile by increased renewable energy on the system. The Trust’s largest position, Gresham House Energy Storage, gained 20.3% Harmony Energy and Gore Street Energy Storage also performed well with share price gains of 12.6% and 2.5%.

We continue to like the “hidden value” of the quality renewable businesses within the portfolio’s renewable focussed utilities, those utilities with substantial and growing renewable energy businesses. Despite very solid operational and financial results, share price moves were, however, muted on the difficult economic environment. SSE’s March 2022 results were strong, with a 22% gain in normalised earnings. We added to the Iberdrola position, which also produced good 2021 financial results, its renewable energy business being particularly strong. Algonquin Power & Utilities’ strategy is to consolidate smaller US utility companies while expanding its nationwide renewables business. 2021 results were strong with several new renewable assets commissioned, plus the acquisition of Kentucky Power.

Income

The portfolio has a healthy level of underlying dividend growth. The strong dividend increases seen in the main Chinese investments are discussed above. Also worthy of note among the larger holdings, was the 9.9% increase in Drax’s full year 2021 dividend, the 5.9% growth at RWE, plus 10.0% growth for Algonquin Power & Utilities.

We expect strong results for the UK renewable energy investment companies in 2022, which should help drive their dividends higher. For instance, Greencoat UK Wind has recently announced a 7.5% increase in its quarterly payment.

The portfolio aims to achieve a balanced return including a high income together with capital growth over the long-term. In this regard, almost 30% of the portfolio is invested in companies with dividend yields below 2.5%, i.e. they are held primarily for capital appreciation.

Currency

Given the gearing within PMGR’s capital structure, with an international currency exposed portfolio, part funded by sterling denominated ZDP shares, currency movements are magnified within the NAV. Therefore, we have adopted a policy of cautious currency hedging, ensuring that ZDP liability is covered by sterling assets, including currency hedging contracts.

Hedging was focussed on the Euro exposure in the period, and sterling fell by 2.3% against the Euro, resulting in hedging losses of £0.3m. With the inflationary environment meaning that the ECB is forced to end its QE programme, we are concerned that the yield spreads between higher credit Euro countries, and those of more indebted Southern European countries will widen, possibly precipitating another Euro crisis. Therefore, we expect to maintain hedges against the Euro covering the majority of Euro exposure until the economic situation is clearer.

The US dollar and Canadian dollars, which gained 10.0% and 8.4% against sterling over the first half of the year, were unhedged so the currency gains were captured in full.

Portfolio activity

Investment activity levels were relatively modest, with purchases of £7.7m and sales of £7.6m. This is a reduction of investment activity levels compared to 2021, reflecting the settled nature of the portfolio.

Outlook

2022 has so far illustrated the many benefits of renewable energy. These include firstly, security of supply versus imported fossil fuels (often imported from unstable regimes). Secondly, renewables have steady and low costs that are not subject to the volatility of international commodity markets. Thirdly, with many governments looking to extend the lives of coal-fired power stations, and the costs of carbon emissions increasing, low carbon energy sources are needed more than ever. As such, we remain optimistic for the sector’s prospects.

James Smith

Premier Fund Managers Limited

3 August 2022

INVESTMENT PORTFOLIO

at 30 June 2022

Company	Activity	Country	Value £000	% of total investments	Ranking June 2022	Ranking December 2021
Greencoat UK Wind	Yieldcos & funds	United Kingdom	3,147	6.1	1	6
Drax Group	Biomass generation and production	United Kingdom	3,022	5.9	2	3
NextEnergy Solar Fund	Yieldcos & funds	United Kingdom	2,987	5.8	3	7
China Everbright Environment	Waste to energy	China	2,926	5.7	4	2
China Suntien Green Energy	Renewable energy developers	China	2,854	5.5	5	1
Atlantica Sustainable Infrastructure	Yieldcos & funds	Global	2,521	4.9	6	10
Gresham House Energy Storage Fund	Energy storage	United Kingdom	2,384	4.6	7	12
Grenergy Renovables	Renewable energy developers	Global	2,182	4.2	8	16
RWE	Renewable energy developers	Europe (ex. UK)	2,114	4.1	9	4
China Longyuan Power	Renewable energy developers	China	1,909	3.7	10	11
Clearway Energy ‘A’	Yieldcos & funds	North America	1,840	3.6	11	13
Foresight Solar Fund	Yieldcos & funds	United Kingdom	1,810	3.5	12	18
Iberdrola	Renewable focused utilities	Global	1,704	3.3	13	19
Algonquin Power and Utilities	Renewable focused utilities	North America	1,656	3.2	14	9
SSE	Renewable focused utilities	United Kingdom	1,454	2.8	15	15
Northland Power Income Fund	Renewable energy developers	Global	1,221	2.4	16	20
Octopus Renewable Infrastructure	Yieldcos & funds	United Kingdom	1,188	2.3	17	–
National Grid	Electricity networks	Global	1,157	2.2	18	5
TransAlta Renewables	Yieldcos & funds	North America	1,131	2.2	19	17
Harmony Energy Income Trust	Energy storage	United Kingdom	1,115	2.2	20	21
Corporation Acciona Energias Renovables	Renewable energy developers	Europe (ex. UK)	1,107	2.1	21	–
MPC Energy Solutions	Renewable energy developers	Latin America	795	1.5	22	23
Acciona	Renewable energy developers	Europe (ex. UK)	755	1.5	23	14
Gore Street Energy Storage Fund	Energy storage	United Kingdom	721	1.4	24	24
New Energy Solar	Yieldcos & funds	North America	674	1.3	25	22
Greencoat Renewable	Yieldcos & funds	Europe (ex. UK)	604	1.2	26	27
Bonheur	Renewable energy developers	Europe (ex. UK)	590	1.1	27	41
7C Solarparken	Renewable energy developers	Europe (ex. UK)	518	1.0	28	30
Omega Geracao	Renewable energy developers	Latin America	472	0.9	29	32
KS Global Carbon Strategy	Carbon markets	Global	446	0.9	30	36
China Everbright Greentech	Biomass generation and production	China	432	0.8	31	28
Eneti	Renewable technology and service	Global	418	0.8	32	29
Fusion Fuel Green
(incl. warrants)	Renewable technology and service	Europe (ex. UK)	413	0.8	33	33
Atrato Onsite Energy	Renewable energy developers	United Kingdom	387	0.8	34	39
Enefit Green	Renewable energy developers	Europe (ex. UK)	339	0.7	35	35
Slitevind	Renewable energy developers	Europe (ex. UK)	338	0.7	36	–
NextEra Energy Partners	Yieldcos & funds	North America	306	0.6	37	–
Boralex	Renewable energy developers	Global	273	0.5	38	–
Seaway 7	Renewable technology and service	Global	247	0.5	39	31
Solaria Energía y Medio Ambiente	Renewable energy developers	Europe (ex. UK)	244	0.5	40	38
Pacifico Renewables	Yieldcos & funds	Europe (ex. UK)	181	0.4	41	42
Ocean Sun	Renewable technology and service	Global	179	0.4	42	37
Innergex Renewable	Renewable energy developers	North America	166	0.3	43	44
GreenVolt	Renewable energy developers	Europe (ex. UK)	130	0.3	44	–
US Solar Fund	Yieldcos & funds	North America	126	0.2	45	–
Cloudberry Clean Energy	Renewable energy developers	Europe (ex. UK)	121	0.2	46	–
Scatec	Renewable energy developers	Global	119	0.2	47	40
			51,423	99.8
PMGR Securities 2025 PLC	ZDP subsidiary	United Kingdom	50	0.1
PGIT Securities 2020 PLC(in liquidation)	ZDP subsidiary	United Kingdom	50	0.1
Total investments			51,523	100.0

INTERIM MANAGEMENT REPORT

Premier Miton Global Renewables Trust PLC is required to make the following disclosures in its Half Year Report:

PRINCIPAL RISKS AND UNCERTAINTIES

The Board believes that the principal risks and uncertainties faced by the Company continue to fall into the following categories:

• Structure of the Company and gearing

• Repayment of ZDP Shares

• Dividend levels

• Currency risk

• Liquidity risk

• Market price risk

• Discount volatility

• Operational risk

• Accounting, legal and regulatory risk

• Political intervention

• Industry regulation

• Geopolitical risk

• Climate risk

• Covid-19 risks

Information on each of these, save for Repayment of ZDP Shares, is given in the Strategic Report in the Annual Report for the year ended 31 December 2021. Attention is further drawn to the new 2025 ZDP Shares’ liability falling due on 28 November 2025, the repayment of which stands in preference to the entitlements of Ordinary Shares. A fall in value of the Company’s portfolio around that time could have a material adverse effect on the value of the Ordinary Shares.

RELATED PARTY TRANSACTIONS

The Directors are recognised as a related party under the Listing Rules and during the six months to 30 June 2022 fees paid to Directors of the Company totalled £37,700 (six months ended 30 June 2021: £34,000 and year to 31 December 2021: £69,000).

GOING CONCERN

The Directors believe that, having considered the Company’s investment objectives (shown on page 1), risk management policies and procedures, nature of portfolio and income and expense projections, the Company has adequate resources, an appropriate financial structure and suitable management arrangements in place to continue in operational existence for a period of at least 12 months from the date these financial statements were approved. For these reasons, they consider that the use of the going concern basis is appropriate. The risks that the Directors considered most likely to adversely affect the Company’s available resources over this period were a significant fall in the valuation or a reduction in the liquidity of the Company’s investment portfolio.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Directors are responsible for preparing the Half Year Report, in accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:

• The condensed set of Financial Statements within the Half Year Report has been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 and applicable law; and

• The Interim Management Report includes a fair review of the information required by 4.2.7R (indication of important events during the first six months of the year) and 4.2.8R (disclosure of related party transactions and changes therein) of the FCA’s Disclosure and Transparency Rules.

For and on behalf of the Board.

Gillian Nott OBE

Chairman

3 August 2022

DIRECTORS AND ADVISERS

Directors

Gillian Nott OBE – Chairman

Melville Trimble – Chairman of the Audit Committee

Victoria Muir – Chairman of the Remuneration Committee

Alternative Investment Fund Manager (“AIFM”)

Premier Portfolio Managers Limited

Eastgate Court

High Street

Guildford

Surrey GU1 3DE

Telephone: [phone]

www.premiermiton.com

Authorised and regulated by the Financial Conduct Authority (“FCA”)

Investment Manager

Premier Fund Managers Limited

Eastgate Court

High Street

Guildford

Surrey GU1 3DE

Telephone: [phone]

www.premiermiton.com

Authorised and regulated by the Financial Conduct Authority

Company Secretary and Registered Office

Link Company Matters Limited

6th Floor

65 Gresham Street

London EC2V 7NQ

[e-mail]

Registrar

Link Group

Central Square

29 Wellington Street

Leeds LS1 4DL

Telephone: [phone]*

Overseas: [phone]*

E-mail: [e-mail]

www.signalshares.com

Custodian

The Northern Trust Company

50 Bank Street

Canary Wharf

London E14 5NT

Depositary

Northern Trust Investor Services Limited†

50 Bank Street

Canary Wharf

London E14 5NT

Authorised by the Prudential Regulation Authority (“PRA”) and regulated by the FCA and PRA.

Auditor

KPMG LLP

15 Canada Square

London E14 5GL

Tax Advisor

Crowe U.K. LLP

55 Ludgate Hill

London EC4M 7JW

Stockbroker

finnCap Capital Markets

One Bartholomew Close

London EC1A 7BL

Telephone: [phone]

Ordinary Shares

SEDOL: 3353790GB

LSE: PMGR

Zero Dividend Preference Shares

SEDOL: BNG43G3GB

LSE: PMGZ

Global Intermediary Identification Number

GIIN: W6S9MG.00000.LE.826

†Changed 27 November 2021, previously Northern Trust Global Services SE, UK branch.

*Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. The Registrar is open between 09:00 - 17:30 Monday to Friday excluding public hol