UK Wind
Exposure to onshore and offshore UK wind assets through a premium listed vehicle offering an attractive, sustainable dividend, alongside private market co-investment opportunities.The original renewable infrastructure fund, specialising in operational wind assets in the UK
The leading listed renewable infrastructure fund, Greencoat UK Wind PLC (UKW) invests in operating onshore and offshore UK wind farms.
UKW was the first renewable infrastructure fund to list on the LSE main market, with its IPO in March 2013. The fund is today is near the top of the FTSE 250, with a market capitalisation of approximately GBP 3.6bn.
UKW is managed by Schroders Greencoat and is overseen by an independent board of directors. Co-investment opportunities in UK wind assets are delivered through a range of private market vehicles offering predictable sterling cashflows with significant inflation protection.
Exposure to onshore and offshore wind aimed at delivering inflation linked returns
UKW is currently invested in 49 wind farms with net generating capacity of 1,610MW. The wind farms have produced over 18.8TWh of power between IPO in March 2013 to December 2022.
UKW aims to provide investors with an annual dividend, increasing in line with RPI inflation, while preserving capital value in the long term on a real basis through reinvestment of excess cash flow.
It also offers the opportunity to participate directly in the ownership of UK wind farms, increasing the resources and capital dedicated to renewables deployment as part of the Net Zero transition.
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Key Investment Risks
Volatility risk: The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
Liquidity risk: There may be very limited liquidity available via the secondary market of the proposed Fund given the underlying private credit assets and investors should consider an investment only if they intend to hold it for the life of the proposed Fund. Liquidity of the underlying investments might not be sufficient to meet investor subscription and redemption requirements.
Interest rate risk: A rise in interest rates generally causes bond prices to fall.
Credit risk of underlying issuers/lenders: A decline in the financial health of an issuer/lender can cause the value of its bonds/ loans to fall or become worthless.
Currency risk: The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses.
Counterparty risk: The counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the proposed fund, potentially creating a partial or total loss for the proposed fund.
Derivatives risk: A derivative may not perform as expected, and may create losses greater than the cost of the derivative.
Concentration risk: The proposed Fund may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down, which may adversely impact the performance of the fund.
Gearing risk: The proposed fund may borrow money to invest in further investments. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.
Valuation risk: The underlying private credit assets may be subject to inadequate pricing reliability. In addition, property-based vehicles invest in real property, the value of which is generally a matter of a valuer’s opinion.
Industry/country risk: Legislative changes, changes in general economic conditions and increased competitive forces may affect the value of investments. Additional risks may include greater social and political uncertainty and instability and natural disasters.
Infrastructure asset risk: Infrastructure assets expose investors to additional risks, in particular construction risk (e.g. construction delays, cost overruns, etc.) and deployment risk (e.g. capital being deployed in several instalments during construction period rather than upfront for brownfield investments).