Exorbitant energy prices have produced easy returns for producers for 18 months. In the case of Greencoat UK Wind, an owner and operator of wind farms throughout Britain, the investors’ cash that has flooded into the energy sector in that time has put the fund on course for entrance into the FTSE 100.
That’s if it is not due for a huge reversal in fortunes. Wholesale gas prices have been heading south since September, good news for consumers, less so for shareholders in energy suppliers such as Greencoat. The shares have followed suit and a rare discount has opened up against the value of the fund’s assets of just over 5 per cent. Investors seeking income should take that valuation gap as a cue
