Help pls to turn £50k in premium bonds into a better green investment

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  • mark13
    mark13 Posts: 367 Forumite
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    At that age, if you already have income, keep the bonds, its a bit of fun and the litle wins will give some pleasure.
    Win Dec 2009 - In the Night Garden DVD : Nov 2010 - Paultons Park Tickets :
  • Voyager2002
    Voyager2002 Posts: 15,281 Forumite
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    AnotherJoe wrote: »
    I wouldnt touch "green bonds" with a long bargepole made out of recycled wood.
    At her age, I agree, a few nice holidays or similar.
    If you/she "insisted" on investing in something "green", then INRG and TRIG is where I am, two very different but "green" investments.


    Agreed.



    To that list I would add Greencoat: operating solely in the UK providing wind power and so able to sell all the power that it produces with a market protected from competition (because of the Green Energy obligation on UK electricity distributors), facing rising prices for its product and falling costs. Over recent years the share price has shown unusually low volatility, while it pays annual dividends equivalent to five per cent of the share price.

    I have also lent some funds to a local Community Green Energy cooperative. Since the coop is profitable (it installed solar panels on public buildings and so does not need to pay rent) the risk seems to be low; it pays interest at five per cent and the loan is repayable. Similar opportunities are probably available in most parts of the country.

    Investments such as this are sensible for people with other funds, but obviously capital is at risk.
  • firestone
    firestone Posts: 520 Forumite
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    edited 19 August 2019 at 11:14AM
    if not wanting to go down the IT route or looking for a global spin VT Gravis Clean Energy income may be worth a look or they do a UK infrastructure income fund with most of the well known energy IT's
  • cogito
    cogito Posts: 4,898 Forumite
    Something like this perhaps?

    https://www.foresightgroup.eu/media/1634547/grif-investor-presentation-july-2019.pdf
  • Albermarle
    Albermarle Posts: 22,113 Forumite
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    I have also lent some funds to a local Community Green Energy cooperative. Since the coop is profitable (it installed solar panels on public buildings and so does not need to pay rent) the risk seems to be low; it pays interest at five per cent and the loan is repayable.

    Very similar bonds have been available on the Triodos crowdfunding site . Although some caution about anything connected with retail bonds/crowdfunding is a healthy attitude , in this case the link with an established and reputable bank gives some comfort .
    Also the due diligence is in a different league from most similar offerings .
    Not a great return ( 4 to 5 %) and payback over a very long period . Also they support other good causes , not just green bonds.
    Main problem is a very slow and erratic flow of offerings..
  • chrisling
    chrisling Posts: 3 Newbie
    Just a quick thank you for everyones posts. The quality and diversity has really helped expand my knowledge and given so many options to think about.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 20 August 2019 at 8:49AM
    Difference between Greencoat and TRIG is that Greencoat is 100% U.K. whereas TRIG is N Europe (about 50% U.K.) , which I think makes it a better bet for stability and lower risk.
    I'm reinvesting my TRIG dividends back into TRIG, its a high payer ,around 5%, like Greencoat.
  • Voyager2002
    Voyager2002 Posts: 15,281 Forumite
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    AnotherJoe wrote: »
    Difference between Greencoat and TRIG is that Greencoat is 100% U.K. whereas TRIG is N Europe (about 50% U.K.) , which I think makes it a better bet for stability and lower risk.
    I'm reinvesting my TRIG dividends back into TRIG, its a high payer ,around 5%, like Greencoat.


    I hold both (roughly equal amounts).


    The UK is exceptionally favourable for established suppliers of renewable energy because government policy gives them a guaranteed market and blocks new entrants. So Greencoat is worth considering to benefit from this, although I agree about the benefits of diversification.


    Another difference is that while Greencoat is only in wind power, TRIG is also active in solar power and large-scale batteries. Wind power has been an unsung success story: previous British governments gave significant support to technological development, so that costs have fallen and are continuing to do so. Again, I am happy to benefit from this while maintaining other investments.

    Finally, when I was investing I noticed that Greencoat returns showed a far lower volatility (the usual measure of risk) than any other investment trust or fund that I have ever examined. I do not recall noticing the same thing for TRIG. That is why I mention Greencoat for someone considering a move away from Premium Bonds.
  • Moe_The_Bartender
    Moe_The_Bartender Posts: 1,512 Forumite
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    Greencoat share price is at a premium of 13% to NAV. Not a very attractive proposition as far as I can see.
    The fascists of the future will call themselves anti-fascists.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Moe_The_Bartender wrote: »
    Greencoat share price is at a premium of 13% to NAV. Not a very attractive proposition as far as I can see.

    On that basis, buy WPCT which is running at probably a discount of 50% so obviously it must be 63% more attractive . /s
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