The Fund recorded a 2.65% gain in May (C Accumulation GBP) and finished the month at a year-to-date high. Government bond yields proved volatile during the month but on balance provided a tailwind for the portfolio: the UK 10-year yield was 5% at the beginning of May, it then spiked towards 5.2% mid-month, only to close the period lower at 4.8%.

Most renewable energy generators performed well, with calendar Q1 NAV updates generally showing flat to modest uplifts in net asset values (this was evident for Greencoat UK Wind, Foresight Environmental Infrastructure, Foresight Solar, and The Renewables Infrastructure Group). Foresight Environmental Infrastructure (+14.5% total return in May) was the greatest contributor to performance, followed by The Renewables Infrastructure Group (+9.4%), and both companies had additional catalysts. The former hosted a well-received Capital Markets Day, which showcased the company’s growth assets across sustainable fuels, aquaculture, and controlled-environment glasshouses. With these assets transitioning from development stage to ramp-up and associated de-risking, management were keen to highlight their focus on crystallising value from these investments. The Renewables Infrastructure Group, meanwhile, published a strategic update which included a target for ~4% CAGR in distributable cash flow per share over five years to 2030, an acceleration in the pace of the existing share buyback programme, and investment in its internal investment pipeline – supported by £400m of asset disposals, which are progressing. In addition, an adjustment was made to the basis of fees, such that they will be based solely on market capitalisation (while the shares trade at a discount to NAV, this is a shareholder friendly move) – for context, fees payable for Q1 2026 would have been 19% lower under the new basis.

The Investment Manager notes that on 1^st June, Bluefield Solar announced it had received an offer from Drax Group to acquire the entire issued share capital of Bluefield Solar for 92.574p per share in cash – a material improvement on the prevailing share price and representing a single-digit discount to NAV. This news prompted further near-term positive momentum across the renewables space.

Further notable performers included Gresham House Energy Storage (+8.6%), which reported strong progress on delivering (and expanding) its development pipeline, HICL (+6.5%), and Target Healthcare REIT (+6.1%) as the market responded positively to full year results in the case of HICL and a solid Q1 update from Target.

Detractors of note were limited to a basket of the portfolio’s traditional equities exposures, including SSE (-11.7% total return in May), United Utilities (-7.8%), National Grid (-6.5%) and Pennon (-6.1%). Each of these companies has benefitted from strong share price momentum – particularly evident throughout H2 2025 and into early 2026 – and regular readers will be aware that equity positions have been reduced into this momentum on a number of occasions, locking in profits and limiting the equity beta within the portfolio. Recent additions, Kier Group and Renew Holdings, did not participate in this downside.

Several positions were reduced at the margins during the period, largely to maintain a prudent cash reserve and in some cases owing to strong relative performance. Foresight Environmental Infrastructure, Greencoat UK Wind, GCP Infrastructure and HICL were all reduced, among others.

Looking forward to June, stakeholders will be keen to see the outcome of the (delayed) planning decision for Manor Farm – Tritax BigBox REIT’s inaugural data centre project.