James Carthew: High yield, low rating look unfair on Bluefield Solar
The prices of renewable energy funds fell by an average of 3.1% last month, taking their one-year decline to nearly 17%. Most of these funds are trading at discounts of more than 20% to net asset value (NAV) and have dividend yields well above 6%.
It is important to look beyond the headline numbers, however, and I thought I might illustrate this with three investment companies in the middle of the dividend yield league table.
Atrato Onsite Energy (ROOF), yields 6.9% and stands on a 22.5% discount. ROOF’s share price first slid below asset value last October. With a market value of £108m, ROOF is one of the smaller funds in the sector, which may deter some large investors but is unlikely to be the main problem with the rating. It is a relatively new fund, having successfully floated in November 2021, and paid its first dividend in May 2022…
…Bluefield Solar (BSIF) has a 10-year track record of producing an average underlying total return from net assets of more than 10%, the second highest in the sector after Greencoat UK Wind (UKW). BSIF shares offer investors a prospective yield of 7.4% and discount of 17.6%. BSIF was also one of
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