The Asian Energy Impact Trust board has proposed a wind down to its shareholders following a strategic review of the company.
The trust was launched in 2021, investing in unlisted sustainable energy including power generation, energy storage and sustainable fuel production.
The fund’s performance dropped by 77.9% in the past year, compared to a sector average fall of 23.8%, according to data by FE Fundinfo.
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In November, management of the fund was taken over by Octopus Energy Generation as the ‘transitional investment manager’ until the end of April 2024. The board stated that subject to shareholder approval, it expects Octopus to continue management while assets are realised.
The trust currently trades on a 45% discount, according to the Association of Investment Companies.
Sue Inglis, chair of the Asian Energy Impact Trust, said: “The board is grateful for shareholders’ support during a difficult period for the company. Although the board and many shareholders continue to believe in the company’s fundamental mission, following a comprehensive strategic review, the board has concluded that an orderly realisation of the company’s investments and the progressive return of surplus cash to shareholders is now the best option for shareholders as a whole.”
The board said shareholders will be able to vote on the trust’s future in a general meeting anticipated for Q2 2024.
