Renewable energy and environmental investment trusts have been hit by a perfect storm. Higher inflation, interest and discount rates have impacted market sentiment generally, but particularly so renewable energy. Sector-specific headwinds have added to concerns.
Company discounts have widened significantly – many now being at or near all-time highs. Yet there are reasons to believe the gloom has been overdone. Good opportunities abound for long-term investors who can, in the meantime, harvest bountiful and increasing dividends.