Investment Strategy

ORIT is actively contributing to the energy transition by investing in the development and construction of new Renewable Energy Assets alongside those already in operations, offering investors the opportunity for capital growth alongside income returns from a highly diversified portfolio

Why invest into ORIT?

01

Enormous Sectoral Tailwinds

Renewable energy infrastructure provides the solution to decarbonising our economies, ensuring security of energy supply and reducing energy costs. Yet, there is a funding gap for new assets, providing a significant opportunity for investors

02

Diversification

ORIT is the only genuinely diversified investment trust of meaningful scale in the renewables and energy transition space. Diversification reduces concentrations of risks, and expands the opportunity set which ORIT can bring to its investors

03

Income and Inflation Protection

ORIT has increased its dividend at least in line with UK inflation each year since inception. The portfolio provides a strong underpinning for future growth in the dividend, with a high proportion of fixed revenues, the majority of which are explicitly inflation-linked over the next decade. ORIT’s fixed revenues alone are sufficient to fully cover the target dividend

04

Construction and Development

Investing in assets earlier in their lifecycle offers the opportunity for enhanced returns leading to potential capital growth, as well as the greater positive impact which comes with delivering new generation capacity

05

ESG & Impact

ORIT is an Article 9 product under SFDR, with a focus on delivering social and environmental benefits alongside its investments, without any compromise on financial returns

06

Expert Team and Unique Industry Insight

ORIT is managed by Octopus Energy Generation, one of the largest renewable energy specialist teams with expertise across all stages of the asset life cycle including construction and development. As part of Octopus Energy Group, a global leader in the world’s transition to green energy, our Investment Manager has unique insight into the rapidly evolving opportunities for investors in the sector

ORIT’s investment objective is to provide investors with an attractive and sustainable level of income returns, with an element of capital growth, by investing in a diversified portfolio of Renewable Energy Assets in Europe, the UK and Australia

Investment Strategy

ORIT seeks to achieve its objectives in four ways:

Diversification of Renewable Assets

ORIT's primary objective is to establish a diverse portfolio of Renewable Energy Assets. Our Investment Policy enables us to invest across different renewable technologies, geographies, and project stages. This approach minimises concentration risks while accessing a wide range of complementary opportunities

Embedding Impact into Investments

As an Impact Fund, we actively prioritise social and environmental benefits alongside financial returns. We integrate impact considerations throughout the investment process and ongoing portfolio management

Active Construction &  Asset Management

Through our Investment Manager, Octopus Energy Generation, we play an active role in ensuring site safety, managing construction risks, and maximising the value of our portfolio. This includes optimising generation, dynamically managing risks, controlling costs, and implementing long-term value enhancements such as equipment upgrades or life extension

Inclusion of Construction & Development

Investing in Renewable Energy Assets during the construction-ready or development stages offers opportunities for capital growth and the ability to influence social and environmental benefits. While managing additional risks, we carefully limit investments at these stages, ensuring prudent risk management practices are followed

Investment Limits

The Company intends to invest both in a geographically and technologically diversified
spread of Renewable Energy Assets and, over the long term, it is expected that:
View Investment Policy

UK Concentration Limit

Investments located in the UK will represent less than 50% of the total value of all investments

Single Country Limit

Investments in any single country other than the UK will represent no more than 40% of the total value of all investments

Current Portfolio Breakdown by Country

(total value of all investments as of 31/03/2024)

Single Core Technology Threshold

Investment in (i) onshore and offshore wind farms and (ii) solar PV parks will each not exceed 60% of the total value of all investments.

Onshore and Offshore wind

Solar PV

Current Portfolio Breakdown by Technology

(total value of all investments as of 31/03/2024)

As part of our Investment Restrictions:

Development Stage Limit

Investments that are under development will represent less than 5% of Gross Asset Value*.

*Definition: “Gross Asset Value” means the aggregate of (i) the fair value of the Company’s underlying investments (whether or not subsidiaries), valued on an unlevered basis, (ii) the relevant assets and liabilities of the Company (including cash) valued at fair value (other than third party borrowings) to the extent not included in (i) or (ii) above.

Other Technologies Limit

No more than 20% of Gross Asset Value*, calculated immediately following each investment, will be invested in Renewable Energy Assets which are not onshore or offshore wind farms and solar PV parks.

Current Portfolio Breakdown by Asset Stage

(total value of all investments as of 31/03/2024)

Other Policies

Currency and Hedging Policy

The Company has the ability to enter into hedging transactions for the purpose of efficient portfolio management. In particular, the Company may engage in currency, inflation, interest rates, electricity prices and commodity prices (including,  but not limited to, steel and gas) hedging. Any such hedging transactions will not be undertaken for speculative purposes.

Cash management Policy

The Company may hold cash on deposit and may invest in cash equivalent investments, which may include short-term investments in money market type funds (“Cash and Cash Equivalents”).There is no restriction on the amount of Cash and Cash Equivalents that the Company may hold and there may be times when it is appropriate for the Company to have a significant Cash and Cash Equivalents position. For the avoidance of doubt, the restrictions set out above in relation to investing in UK listed closed-ended investment companies do not apply to money market type funds.

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