Three options for alternative income

Three options for alternative income

Property, infrastructure and renewable energy trusts offer attractive yields – but don’t ignore the risks.

By Emma Agyemang, Investors Chronicle

Renewable energy

Renewable energy can be an interesting alternative to the broader infrastructure trusts as some of their income comes from government sources via green subsidies that aim to encourage renewable energy production. Subsidies often benefit from retail prices index (RPI) inflation linkage. But unlike the broader infrastructure trusts, part of their income stream is based on the power price, which can vary.

Mr Cade rates Bluefield Solar Income Fund (BSIF), which invests in a portfolio of UK solar energy assets with a focus on utility scale assets. The trust targets long life solar energy infrastructure, which is expected to generate stable renewable energy output over a 25-year asset life. It has a yield of 6.4 per cent and is trading at a premium to NAV of 9.9 per cent. It has an OCF of 1.24 per cent.

This represents an extract of an Investors Chronicle article published on 17 August 2017: