Jennifer Hill, from interactive investor, 9th June 2025:
In the investment world, few sectors have experienced as sharp a reversal as renewable energy infrastructure trusts. Once buoyed by strong investor demand, these vehicles – powered by sun, wind, and waves – offered the appeal of clean energy alongside reliable, high-yield income.
But as interest rates climbed and sentiment turned cautious, the sector’s once-steady premiums to net asset value (NAV) gave way to steep discounts – from an average 7.2% premium at the end of 2021 to a 34.1% discount at the end of April this year..
For Ord, current pessimism is “excessive”, while Liddell and James Carthew, head of investment companies at QuotedData, describe the sector as “just too cheap” and “irrationally cheap”, respectively..
Carthew finds it harder to choose just one name. “It’s hard to pick – I own a few – but I love Downing Renewables mainly because of the hydro and battery storage potential, and to me, this feels like a relatively lower-risk investment,” he says.
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