Foresight Solar Fund (FSFL)

Another 12 months have gone by, and it’s time to pause and take stock of how much has happened in another memorable year for Foresight Solar. With a challenging macroeconomic environment, the change of government in the UK came with the potential to improve the outlook for renewables. Interest rates will likely come down—even if they’re poised to stay above what we saw in the 2010s—but the higher-for-longer environment will affect real assets investments. The key, however, is how boards and managers deal with it all. In 2024, we continued to take actions we believe set us apart—and are confident they position us well to kick off the New Year. So, to wrap up, here is a summary of all we've achieved: - Remained on track to pay the targeted 8 pence per share dividend with 1.4x cover despite one of the wettest years in the fund’s history—at the current share price, that’s almost an 11% dividend yield - Increased the buyback programme to up to £50 million, making it one of the largest in the sector at about 8% of the fund’s net asset value - Returned approximately £65 million to shareholders between dividends and share repurchases - Continued to pay down debt and optimise the capital structure with treasury management initiatives that reduced RCF costs by a forecast £360,000 - Agreed a framework to grow the proprietary development pipeline to almost 1GW of solar and battery storage projects, allowing Foresight Solar to capture financial upside directly for investors - Started the process to sell the 170MW of operational solar and 122MWp of development-stage BESS in Australia, with signing expected in the first half of 2025 - Managed the active price hedging strategy to provide revenue visibility, locking in proportions of the global portfolio: 89% for 2024, 83% for 2025, and 63% for 2026 - Appointed two new independent directors to oversee Foresight Solar’s strategy and portfolio as part of the outlined succession plan (read the conversation with paul masterton here: https://lnkd.in/dSUfqBN8) - Hosted a capital markets event, delving into our operational excellence and detailing the income and growth strategy (read the presentation and watch a recording of the sessions here: https://lnkd.in/eRZR8_bm) As the Foresight Solar team heads into the holiday period, some of the investment manager’s London team posed in (mostly) funny jumpers to wish you a happy, sun-soaked holiday season and a bright New Year! We look forward to what the next 12 months have in store. #InvestmentTrusts #SolarEnergy #Sustainability

paul masterton joined our board of directors last month. With deep managerial expertise and strong infrastructure oversight experience, he will help oversee the execution of Foresight Solar's strategy and support our growth ambitions. In this Q&A, he speaks about his background, his interest in joining FSFL, the role of the board, and the opportunities and challenges for investors. Read the conversation below and visit the announcement of his appointment on our website: https://lnkd.in/e59p7AQ7 #RenewableEnergy #InvestmentTrusts

The deadline for sustainable UK funds to publish a label according to the Financial Conduct Authority’s Sustainability Disclosure Requirements (SDR) is today. Although Foresight Solar is out of scope of the regulation because of our Jersey registration, the Directors believe the fund’s inherent sustainability features, our London listing, and the characteristics of our shareholder base naturally led to seeking equivalence to SDR. So, as outlined in the 2023 annual report, we committed to determining an equivalent label and to addressing the necessary compliance requirements. We’re proud to publish the documents that offer equivalence to the Sustainability Focus label. On our website, you’ll find an alternative to pre-contractual disclosure and to the consumer-facing disclosure. Read through the documents here: https://lnkd.in/e2vSrJez #InvestmentTrusts #Sustainability

COP wrapped up in Baku 35 hours after its scheduled closing as negotiators signed an agreement tripling rich countries’ commitment to developing nations to $300 billion per year by 2035. Is that enough? What does it mean for renewables? Recipients of the money argue the grants and loan figure needs to be closer to $1.5 trillion if the targets set in the Paris Climate Agreement are to be achieved. Some scientists believe the 1.5C target is already out of reach. However, many participants defended the latest compromise as a good outcome in light of tensions in developed nations as governments deal with changes in public opinion and domestic issues. While this result is potentially a missed opportunity, it shouldn’t slow down the rollout of solar energy. In Foresight Solar’s core markets, governments have doubled down on renewables. The UK and Europe are deploying public capital and incentivising private money to supercharge the transition to a lower carbon economy, and we believe FSFL is well positioned to capture the benefits for its shareholders. #InvestmentTrusts #SolarEnergy #Renewables Image of "COP29 Behind the Scenes Day 1" by IAEA Imagebank is licensed under CC BY 2.0.

Solar energy is a cornerstone of the global energy transition. Falling costs, efficiency gains, and the urgent need to combat climate change have been key drivers of the technology's gain in importance. In the latest Solar Spotlight newsletter, we discuss the efficiency breakthroughs, the cost revolution, and the global momentum that have helped define solar as an asset class of its own. The cost-effectiveness and strong government support have created a robust investment landscape with reliable returns. Read more below and share your thoughts in the comments. #RenewableEnergy #SolarPower #EnergyTransition #Sustainability #Innovation

Foresight Solar announced today its third quarter net asset value (NAV) of £639.9 million, equivalent to 112.6 pence per share. The year’s poor weather persisted in the months from July to September, but resilient operational performance resulted in cumulative production for the global portfolio 6.5% under budget for 2024. Nonetheless, cash generation remains healthy, and FSFL is on track to pay its 8.0pps target dividend for the year with cover of 1.4x driven by its power price hedging strategy. Read the full RNS on our website: https://lnkd.in/eEJMXSyk #InvestmentTrusts #SolarEnergy

🎙 Ross Driver recently spoke with Jonathan McNair of NPM Europe (New Project Media) and discussed Foresight Solar's investment mandate to deliver strong and growing yield for shareholders through its portfolio of solar and battery storage projects. Ross explained how the fund's strategy has evolved since it came to market more than a decade ago. After building a resilient portfolio of UK-based, subsidy-backed solar farms, Foresight Solar is now focused on investing in early-stage projects that offer opportunities to crystalise value as they move through the development cycle. This optionality allows us to capture the financial upside and generate cash that can be re-invested for further growth. In the podcast, Ross also talked about at the current fundraising and investment landscape for listed renewable energy funds. Listen to the full episode here: https://lnkd.in/d-dagwEs #RenewableInfrastructure #InvestmentTrust #Solar #Batteries

Despite today’s mixed messages from the Budget, we remain confident in our strategy to generate income and growth for institutional and retail shareholders—and in renewables as an asset class. Like most market participants, we want to see policies and structures that encourage liquidity and incentivise investment, benefiting individuals, companies, and investors. Although we are concerned about the impact of changes to the tax treatment of pensions and the higher capital gains levies, the commitments to infrastructure investment and to sustainable economic growth bode well for communities and for those with long-term horizons. A fiscal event of the scale of the Budget will always bring short-term volatility, as we have seen with the recent rise in Gilt yields. Bond markets will continue to be watched closely, but the bigger picture shows we might be moving in the right direction. With some economists expecting interest rates to fall to 2.75% by next autumn, we are optimistic an attractive investment environment for UK assets more broadly, and for renewables specifically, is coming. Amid all this, our interim results demonstrated the resilience of solar as an investment proposition, even during a period of low irradiation. Our portfolio continues to operate well, cash generation is healthy, and we are looking ahead to growth with our proprietary development pipeline.   #Budget #UKMarkets #InvestmentTrusts #SolarEnergy

How can solar projects help to support biodiversity net gain?   Foresight Solar's Fund Manager Ross Driver sat down with Sarah George on the edie Sustainability Uncovered podcast to discuss the findings of Foresight Group's Nature Recovery Blueprint.   As the first week of COP16 draws to a close in Colombia, Ross discussed the importance of protecting biodiversity and nature at our solar sites and beyond. He covered: - How and why we developed the Blueprint - Why teaming up with the Eden Project was so important - Wider sector trends and government policies to boost nature recovery In this episode, Ross is accompanied by Carl Lens - JustDiggit and Katie Leach and Jennifer Burrett - Lloyds. Have a listen with your morning coffee!   Spotify: https://lnkd.in/eMTSywie Apple podcasts: https://lnkd.in/eSDH6Z_K Soundcloud: https://lnkd.in/e-PEjVgu   #Biodiversity #BiodiversityNetGain #NatureRecovery #COP16

Earlier this month, Ross Driver joined The Association of Investment Companies (AIC)'s Investment Company Showcase as part of a panel discussion on renewable energy alongside speakers from SDCL Energy Efficiency Income Trust (SEEIT) and Downing Renewables & Infrastructure Trust (DORE). With ambitions to treble the UK's solar capacity by 2030, Ross discusses the positive direction of travel the sector is moving in - noting the government's increase to CfDs and approving three nationally significant solar farms which were awaiting ministerial consent. Ross also emphasises the importance of a balanced grid - comprised of wind, solar and battery storage - and how investing in renewables now is key to bringing down energy bills in the longer term. A recording of the panel is available to view on the AIC website: https://lnkd.in/gRD9Wz-G #InvestmentTrust #Renewables #Infrastructure