By MICHAEL FLITTON
The SDCL Energy Efficiency Income Trust (SEEIT) has been introduced as a new holding in Cerno multi asset portfolios.
SEEIT is a London listed investment trust which owns and manages a diverse portfolio of energy efficiency and distributed energy generation assets.
Energy efficiency involves the delivery of cheaper, cleaner, and more reliable energy solutions at the point of use. This reduces, or eliminates, reliance on the grid or subsidies. The fund’s activities fall into two broad categories: energy efficiency and decentralised energy. In the former are solutions including LED lighting and smart building management systems. Under the latter the focus is on bringing energy generation closer to the point of use. There is a big opportunity, for example; 50% of UK natural gas energy is lost in transmission in the form of heat. The focus here is on roof-top solar installations and combined heat and power units. SDCL’s commercial customers gain lower costs, reduced environmental footprint and improved infrastructure resilience.
CEO and founder, Jonathan Maxwell, has a long history in infrastructure having listed HSBC Infrastructure company (also part of Cerno portfolios) prior to starting SDCL. The manager’s experience is reflected in the fund’s global exposure, which is equally split between Europe, the UK, and the US.
The aim of the trust is to reduce the demand for energy. This is a potentially vast market set to enjoy tailwinds from regulation and evolving societal norms. Their solutions have a clear value proposition for their customers. SEEIT is held within the Steady Return allocation in the multi asset strategy and offers a yield of 5.2%.