The trust has a fairly simple business model operating a portfolio of 34 onshore and offshore wind farms throughout the UK. The trust was launched in 2013 and over this period, returns for investors including dividends have just about doubled making it the best performing trust in the renewables sector. Total returns over the past 5 years compare well with other holdings... UKW 73% v TRIG 70% v Vanguard SRI Global 80%
In February, the trust agreed to purchase a 35.5% share in two Scottish windfarms owned by SSE with a combined capacity of 322MW from 99 wind turbines. This takes UKW total capacity to around 950 MW of electricity, sufficient to power 550,000 homes.
|Stronelairg Wind Farm Nr Fort Augustus, Scotland|
UKW's aim is to maintain progressive dividends for shareholders in line with RPI inflation and preserve capital over the long term. The trust pays quarterly dividends and the target for the current year is 6.94p. which means a yield of 5% based on the current share price. The company's target is for a total shareholder return including dividends of 8% to 9% per year.
In the coming week, UKW will announce interim results for the 6 months to end June 2019.
I don't imagine the re-alignment of one small investor's portfolio towards more climate-friendly investments will be moving the climate emergency dial very far. This will be done by the likes of large sovereign wealth funds and pension funds.
However, I think that when lots of small investors start to rethink the relationship between financial goals and the future security of the environment, it could have a significant impact. Apart from all this it just makes me feel a bit better. This now takes the total 'green' portion of my portfolio to 50%.
“I have always been that girl in the back who doesn’t say anything. I thought I couldn’t make a difference because I was too small.” Greta Thunberg.
As ever, this article is merely a record of my personal investment decisions and should not be regarded as an endorsement or recommendation - always DYOR!