Could an ill wind hit renewable energy funds?

Infrastructure is a good investment – but watch out for hidden risks, particularly in renewable energy.

Winterton wind farm in Norfolk © Loop Images Ltd / Alamy
Wind energy: too cheap for its own good? © Alamy
(Image credit: Winterton wind farm in Norfolk © Loop Images Ltd / Alamy)

Infrastructure as an asset class is mostly accessed via specialist investment trusts, but as it has (rightly, in my view) grown more popular, we’ve seen the rise of what are in effect infrastructure funds of funds, structured as open-ended vehicles. In other words, these funds grow or shrink as investors buy in or withdraw money, unlike an investment trust which has a fixed number of shares in issue which investors trade with one another. VT Gravis UK Infrastructure and FP Foresight UK Infrastructure Income, the two biggest such funds, have between them more than £1bn in assets under management, and I remain bullish on both.

Big fish, small pond

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David C. Stevenson
Contributor

David Stevenson has been writing the Financial Times Adventurous Investor column for nearly 15 years and is also a regular columnist for Citywire. He writes his own widely read Adventurous Investor SubStack newsletter at davidstevenson.substack.com

David has also had a successful career as a media entrepreneur setting up the big European fintech news and event outfit www.altfi.com as well as www.etfstream.com in the asset management space. 

Before that, he was a founding partner in the Rocket Science Group, a successful corporate comms business. 

David has also written a number of books on investing, funds, ETFs, and stock picking and is currently a non-executive director on a number of stockmarket-listed funds including Gresham House Energy Storage and the Aurora Investment Trust. 

In what remains of his spare time he is a presiding justice on the Southampton magistrates bench.