Jolly Green Portfolio: Week 6 – JLEN

This week I’m putting £100 into JLEN, the £700m diversified environmental insfrastructure fund with a big focus on renewable energy.

Inspired by FT journalist Alice Ross’s Investing to Save the Planet, I’d like to share with you how your money can make a difference by investing in and profiting from the path to Net Zero.

I’ve had my eye on what was the John Laing Environmental Fund now JLEN Environmental Assets Group for some time but I’ve only just invested.

Curiously, the fund has raised modest sums of money (typically £50-100m and are over subscribed) over the last few years as it grows is assets – which is an indication that along with owning assets, it’s also into developing the green infrastructure that we need. So money invested in JLEN today is helping fund our path towards Net Zero.

Reasons to Invest

The shares trade at around 110p and quarterly dividends are 1.7p/share giving a 6.2% dividend yield. My 90 shares will pay for 0.9 days of my future gas/electricity bill – which makes me think that I should increase the £100 weekly investment to £1,000 to get closer to paying my bills.

The share price shows little volatility and I’m not expecting it to double in value, but it is a long term buy and hold share with a good dividend and with an established team at the helm

JLEN operates across six different areas:

  • Wind
  • Anaerobic Digestion
  • Solar
  • Waste & Bioenergy
  • Hydro
  • Low Carbon & Energy Efficiency

While most of their assets 300+ are in the UK – including one asset that is within line of sight of my front door – they do have projects and investments in Scandinavia, France, Spain and Italy – most of which are wind.

The portfolio value of the group is mostly wind (29%), anaerobic digestion (24%), solar (18%) & waste & bioenergy (25%) with hydro and low carbon & energy efficiency making up the other 4%.

The diversified nature of the group makes me believe that they have the ability to invest money better than say my beloved GreenCoat Wind which is wind only. The remaining asset life is 17.4 years which will more or less bring me to the point when I can access my final salary pension – I’m happy that at as well as the fact that most of their revenues are inflation linked – meaning inflation won’t bite me in the bum.

Last week, I wrote a blog post about Ripple Energy and one of the factors that I mentioned was project risk – the risk that the project goes overbudget or is late or whatever. With JLEN, 99% of their portfolio is up and running meaning lower risk.

So, for an investment with a 6% dividend with guaranteed, inflation linked revenues across a number of well-established and technologically low-risk sectors, JLEN seems like an easy investment to make.

Why Green Investment is Necessary

I’m a passionate believer that our money should work for something and that’s the purpose of this series of blog posts. Stopping Climate Change and Putin requires more than wishful thinking – so why not invest yourself?

I’m investing through Trading212 & also Orca and if you sign-up yourself, we’ll both get a free share worth up to £200. Alternatively if you prefer a sure thing, I’ve been investing with Invest Engine myself recently and find it very good – sign-up and we’ll both get £25 if you invest £100 for a year (that’s a 25% return and a chance to put your money into action).

You don’t need to invest in individual shares, you can choose easily from a range of low cost ETF trackers if you prefer.

Thanks, GFF

This post is not meant as financial advice. You and will benefit from the affiliate links provided. DYOR and good luck. I own shares in JLEN and other companies mentioned but not Ripple Energy.

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