Gore street energy storage fund

Linton

MY analysis, which could be wrong is...

WIth gilt rates going up fixed income based on contracts signed when interest rates were lower are going to look relatively less attractive.  Hence the drop in prices.

The NAV remains much the same since the capital value of the underlying infrastructure is not immediately tied into interest rates.  The NAV of an infrastructure company is very different to the NAV of an IT.  The former is the value of physical assets which may have little to do with the profitability of the company whilst the latter represents a set of share investments which should broadly tie in with the value of the IT.

Albermarle

Linton said:

MY analysis, which could be wrong is...

WIth gilt rates going up fixed income based on contracts signed when interest rates were lower are going to look relatively less attractive.  Hence the drop in prices.

The NAV remains much the same since the capital value of the underlying infrastructure is not immediately tied into interest rates.  The NAV of an infrastructure company is very different to the NAV of an IT.  The former is the value of physical assets which may have little to do with the profitability of the company whilst the latter represents a set of share investments which should broadly tie in with the value of the IT.

I am not an expert, but probably worth pointing out that some of the investments being discussed are IT's.
Also in some cases they are not necessarily the owner but involved in complicated PPI type contracts, or the value is partly in the contract to supply electricity at a certain price. 

Heedtheadvice

@Linton , I can well see the risk vs other income streams rising affecting percieved value of such funds such as you mention.

......oooh I did not write that very well. I agree it is one aspect!!