This month’s fund in focus is the NextEnergy Solar Fund, the largest owner and operator of solar farms in the UK. Its investment objective is to provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of primarily UK-based solar energy infrastructure assets. NextEnergy Solar Fund (NESF) believes that solar energy has a pivotal role to play in responding to rapidly increasing energy demands while also addressing the global climate agenda.
Attractive investment features of this fund include:
- A strong dividend – The Board of NextEnergy Solar Fund has recently approved a target dividend of 7.52 pence per ordinary share, representing a 5.0% increase from the previous year and a yield on the current share price of 6.6%.
- Diversification – The Company is currently advancing a pipeline of UK investment opportunities, international investment opportunities and battery storage opportunities to complement the UK solar farm portfolio and diversify asset-specific and market risks.
- Renewable Energy Sector – Prices for wind and solar power in major global markets have climbed nearly 30 per cent in a year, as developers struggle with “chaotic” supply chains and surging costs. Contract prices for renewables jumped 28.5 per cent in North America and 27.5 per cent in Europe in the last year
As always, you should only consider the investment views contained in this Market Insights update in the context of your own attitude to risk and how such choices might impact your Asset Allocation model. Should you wish to discuss your investment portfolio, please contact Harvest Financial Services on 01 2375500 or email justask@harvestfinancial.ie.