Proactive - Interviews for investors

Foresight Environmental Infrastructure targets 10% dividend yield with diversified green assets

Episode Summary

Foresight Environmental Infrastructure (LSE:FGEN) Investment Manager Ed Mountney talked with Proactive's Stephen Gunnion about the fund’s diversified approach to environmental infrastructure investing. Mountney explained that FGEN offers access to a wide range of assets, including renewable generation like wind, solar and anaerobic digestion, as well as energy infrastructure and sustainable resource management investments. He said: “We have a resilient and attractive return profile, with 11 years of uninterrupted dividend growth and a high-quality manager in Foresight Group with over 40 years of investment experience.” The fund has recently increased its dividend target, offering a 10% yield based on the current share price, and aims to sustain this through stable cash flows and disciplined asset management. Mountney highlighted the recent strategic review, which refined the investment strategy to prioritise core inflation-linked assets with long-term contracts. This shift is intended to enhance revenue visibility and support future dividend growth. The company plans to divest certain growth-oriented investments like CNG Fuels and its Rjukan project over the next few years as these projects mature and reach scale. Mountney emphasised that capital recycling and selective buybacks will remain important tools to deliver value to shareholders, noting that “the discounts that you’ve got for us are simply too good to pass up.” Despite macroeconomic headwinds, he pointed to strong cash generation and diversification as key factors underpinning resilience. Looking ahead, supportive decarbonisation trends and renewed interest in investment companies could provide further tailwinds for FGEN. Visit Proactive’s YouTube channel for more videos, and don’t forget to give the video a like, subscribe to the channel and enable notifications for future content. #FGEN #ForesightGroup #Decarbonization #RenewableEnergy #GreenInvesting #DividendIncome #SustainableFinance #EnvironmentalInfrastructure #CleanEnergy #InvestmentFunds