Greencoat UK Wind

Voyager2002

Sue58 said:

OP, you also have to consider that Greencoat is trading at a premium of around 8/10%. Therefore, I’d be inclined to invest in a fund such as VT Gravis, INRG or other funds in this category as it spreads the risk over several holdings rather than investing in only one company in this sector.

The premium is purely notional since there is no market for the various productive assets that make up Greencoat.

I do agree with the second part of your comment: I find it odd that Greencoat is an Investment Trust rather than just another company, since it all appears to be one business.

bowlhead99

Voyager2002 said:

I do agree with the second part of your comment: I find it odd that Greencoat is an Investment Trust rather than just another company, since it all appears to be one business.

It's an 'investment company' under the Companies Act as it would meet the definition of, "the business of the company consists of investing its funds [in shares, land or other assets], with the aim of spreading investment risk and giving members of the company the benefit of the results of the management of its funds". The company has invested in a whole bunch of special purpose vehicles which hold particular wind farm assets (they are mostly investing in operating wind farms) and they qualify for 'investment trust' status which is essentially a tax classification offered by HMRC under the corporations tax act.

Sue58

Another_Saver said:

I don't think Brexit comes into it, the UK basing actually reduces any Brexit risk because there's no trade deal risk when your capital, employees, regulations are all within the UK market. But it's a fair point about the Renewal Obligation.
And how they run the business doesn't matter to me, the dividend is never going to rise faster than inflation so whatever they can do to protect it is fine with me (dividends per share appear to have kept up with RPI in spite of the dilution, and it's probably cheaper in the short run to replace debt with share capital).

Surely, nearly all UK companies will be effected in some way if there is no Brexit trade deal.  I realise Greencoat trade only in the UK, however if the pound sinks and the general economy in the UK suffers then how can Greencoat escape all this?

csgohan4

Sue58 said:

Another_Saver said:

I don't think Brexit comes into it, the UK basing actually reduces any Brexit risk because there's no trade deal risk when your capital, employees, regulations are all within the UK market. But it's a fair point about the Renewal Obligation.
And how they run the business doesn't matter to me, the dividend is never going to rise faster than inflation so whatever they can do to protect it is fine with me (dividends per share appear to have kept up with RPI in spite of the dilution, and it's probably cheaper in the short run to replace debt with share capital).

Surely, nearly all UK companies will be effected in some way if there is no Brexit trade deal.  I realise Greencoat trade only in the UK, however if the pound sinks and the general economy in the UK suffers then how can Greencoat escape all this?

Consideration for diversifying out side of the UK would be prudent, even though keeping in the same sector. Vestas Wind System has been mentioned on here in the past is one potential, there are other non UK companies which you may find to be an alternative as well

Dandytf

@Sue58

I've found VT Gravis Clean Energy via HL.
AS I only setup a pre Managed Isa with them earlier this year, I don't have any way of adding additional funds.
Another option could be to Invest small DD monthly via a separate Funds+Shares Account, which I opened last night.
Seems to Add VF Gravis, Initial cost would be one hundred pounds, then I could setup DD.
To add I'lll chose this as 1st Accumulation type fund, rather than income, to learn how it potentially builds units across a few years.

MPN

My father-in-law who has been retired for many years now (he has a financial advisor), has Greencoat and GCP INFRA in his portfolio as satellites. They both have a decent yield/dividend and he believes they also have some decent growth potential. I must admit I had never heard of GCP Infra but having looked at the factsheet it’s seems an interesting investment choice.

Moe_The_Bartender

Dandytf said:

@Sue58

I've found VT Gravis Clean Energy via HL.
AS I only setup a pre Managed Isa with them earlier this year, I don't have any way of adding additional funds.
Another option could be to Invest small DD monthly via a separate Funds+Shares Account, which I opened last night.
Seems to Add VF Gravis, Initial cost would be one hundred pounds, then I could setup DD.
To add I'lll chose this as 1st Accumulation type fund, rather than income, to learn how it potentially builds units across a few years.

You should probably have a chat with HL to discuss your options. I'd be surprised if they were inflexible.

Dandytf

Moe_The_Bartender said:

Dandytf said:

@Sue58

I've found VT Gravis Clean Energy via HL.
AS I only setup a pre Managed Isa with them earlier this year, I don't have any way of adding additional funds.
Another option could be to Invest small DD monthly via a separate Funds+Shares Account, which I opened last night.
Seems to Add VF Gravis, Initial cost would be one hundred pounds, then I could setup DD.
To add I'lll chose this as 1st Accumulation type fund, rather than income, to learn how it potentially builds units across a few years.

You should probably have a chat with HL to discuss your options. I'd be surprised if they were inflexible.

Amazing as HL have just called to correct my Select Funds Isa.
Seems my user error as I missed add funds option via monthly savings tab.
I've since corrected this and setup DD from Jan -VT Gravis Accumulation.
That's saved 100 pounds, though I'll use shares account when necessary if workplace terms expire and I'll hopefully have some share certificates.

Thanks everyone!

Thrugelmir

Sue58 said:

Another_Saver said:

I don't think Brexit comes into it, the UK basing actually reduces any Brexit risk because there's no trade deal risk when your capital, employees, regulations are all within the UK market. But it's a fair point about the Renewal Obligation.
And how they run the business doesn't matter to me, the dividend is never going to rise faster than inflation so whatever they can do to protect it is fine with me (dividends per share appear to have kept up with RPI in spite of the dilution, and it's probably cheaper in the short run to replace debt with share capital).

Surely, nearly all UK companies will be effected in some way if there is no Brexit trade deal.  I realise Greencoat trade only in the UK, however if the pound sinks and the general economy in the UK suffers then how can Greencoat escape all this?

All that matters is how Greencoat performs as an investment. Covid is having a far greater destructive impact on the broader economy than Brexit ever will. 

AnotherJoe

Thrugelmir said:

123mat123 said:

Bit off topic maybe, apologies
Is there a reason why orsted is not in inrg. Also orsted is not offered by interactive investor...?

It is one of the holdings.
Orsted is a Danish listed company. I've always traded this off book, i.e. through a desk dealer,  rather than through online trades. 

i bought it online with HL . Been a great performer.