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BESS likely to get cheaper. https://www.ess-news.com/2025/03/14/china-scraps-energy-storage-mandate-for-renewable-energy-plants/

On line this morning from Interactive Investors......"The other area where analysts are finding plenty of value opportunities is the renewable energy sector. Such trusts have been out of favour with investors due to the higher level of income investors can obtain through lower-risk assets, with cash and government bonds with short lifespans offering yields of around 5%. Such a backdrop reduces the appeal of trying to obtain higher yields for a higher amount of risk.

However, now that the interest-rate cycle has potentially peaked, this sector could see a significant shift in sentiment if investors are tempted by the big discounts on offer as bond yields fall in value after rates are cut.

In addition, the yields are very high, with the sector average yield standing at 9.8%.

As noted in a recent feature, James Carthew, head of investment company research at QuotedData, points out that investors could pick almost any trust in the renewable energy sector and receive a very high, growing dividend (although of course not guaranteed).

It is also an area that James Calder, chief investment officer at City Asset Management, is looking at. Calder says that the revenue streams from this sector are government-backed and long term, adding: “They have gone out of favour and the share prices have dropped, but they are still generating the same strong cash flows. That means the level of yield has got higher and higher.”

High yielding fund ideas for income seekers in 2025

Greencoat UK Wind

UKW

1.95%

is popular with interactive investor customers, consistently appearing in our monthly top 10 most-bought investment trust rankings. Its income stream is linked to inflation, meaning that investors should see their dividend growth match rising prices in the economy. Its discount stands at -24.4%, and the dividend yield is 8.3%.

I have a pretty decent slab of dough invested too. It feels contrarianly good. My proceeds from DNA3 wind up at end of year (or an early disinvest) are likely to go in here.

Ref my earlier post relating to the "true" discount issue. It seems to me that this trust (very) conservatively "self assesses" it's NAV down so that it's dividends look ok at approx 7p per share. There was a recent situation with Riverstone Energy in late 2023 (I think) when the published discount of (from memory) of 40% was pulled apart by DT Questor who opined that it's discount was closer to 90% plus! I've searched on line for the article but cannot find it anywhere. I recall the headline said "the market doesn't know how to value this trust". I think GSF is a similar story. And the market is similarly stupid today. If it's assets are north of £500m then that ought to have a bearing on its value and share price unless BESS installations globally are a fools errand surely? If another outfit like SABA , Elliott Investors or Edward Bramson at Sherborne (who demolished Electra IT) fancied the whole pie they could likely pick it up for 30% of what it cost to get it where it is today.

Thanks for that insight Therosy......a further question re the NAV/market cap value which is £232 million ......but total assets are shown as £506 million. I'm guessing the total asset value (£506m) will broadly relate to the cost of land, the hardware and it's installation and commissioning. In an ideal world , total asset value and market capitalisation and NAV would be close to each other. But it seems to me there is a £270 million odd disparity between the asset value of (£506m) and NAV/market cap (at £232m) and the NAV......or, in other words the NAV is discounted (as well as the share price). So that makes the true discount closer to 75% surely? Or am I barmy?

Emirates have been talking in last few days of bunging Airbus a 10 billion sweetener to get Airbus to re- make the A380! Also Elliott Investors bought 14% of DNA3 years ago.....not just for the fat divi but also to talk up their resale value at end of lease, I'm sure. They will do a better job at it than SABA . New , those planes cost close to half a billion dollars. Today , you could pick them up for north of 40 million dollars a piece (hopefully more courtesy of Elliott) . And these are well maintained low hours aeroplanes which were unused for the COVID times. If it were 40 million GBP then that would be 72p . My hunch is that Elliott will screw the board onto the floor to maximize their return......especially with regard to the above!!! I would not be surprised to see something approaching 80p with full wind up returns.

Trotsky ......Emirates have been talking in last few days of bunging Airbus a 10 billion sweetener to get Airbus to re- make the A380! Also Elliott Investors bought 14% of DNA3 years ago.....not just for the fat divi but also to talk up their resale value at end of lease. New , those planes cost close to half a billion dollars. Today , you could pick them up for north of 40 million dollars a piece (hopefully more courtesy of Elliott) . And these are well maintained low hours aeroplanes which were unused for the COVID times. As regards GSF I see distinct parallels between itself and DNA3 five years ago. Severely undervalued, huge dividend (with proven divi reliability over all recent years), hugely underrated need for BESS in all markets.....and that need will ramp in future years.

Even if the share price stays static re-invested dividends will double your money pretty much over 5 years. What's not to like!

The Trotsky.....Sir Tim Clark President of Emira

Bad research?!!!! That's why! If that final divi comes in at 4p this last quarter that's wonderful!....and makes GSF even more attractive! It makes the compound interest calc much more attractive (assuming GSF continue at 7p ish per annum) . Thanks for the observation Pip!

Thanks Trotsky. GSF looks to me very like DNA3 did five years ago. It owned (owns) four A380s with leaseholder Emirates paying a contracted lease payment . Then COVID came along and Airbus discontinued the A380. The share price dropped like a stone to 30p ish and the dividend went north of 20%. I could see Emirates continuing to pay the agreed lease payments and that the value of the planes would likely be way more than the market reckoned (which indeed they are). With divis reinvested and a doubling of the share price to 63p ish I expect at wind up to maybe have tripled my money in five years. GSF is different as there is none contractual agreement to pay the 7p annually (which is about 15% dividend) . Instead it's paying 4-5p per year which equates to approx 11% dividend. That alone, compounded up with divis re-invested , buys a lot of new shares.....each in turn earning divis. After five years a £30k investment at a static share price equates to a gain of £19k or so. If the divi were to be at 15% then that figure becomes a great deal more. And if the share price were to firm .....well that's a whole bunch more! I like! Lots.

Ref NAV. For me it owns hardware on real estate. Does it own the real estate? What is the value of real estate plus hardware? What is the uplifted potential value of its BESS output over all sites in a negative electrical demand scenario....and one where it's output is of high value?

I think the Oak Bloke should stick to written work. His video delivery is appalling! His written stuff on GSF is better. But beyond that, I'd like to hear appraisal of the accuracy of GSF's NAV please! Does it reflect reality? BESS are going to be extremely important worldwide for AI and Quantum Computing ......let alone transition to EV's and other electrification projects. There's plenty of vultures circling our cheap IT buffet . If GSF's discount to NAV really is 50% then it's a bargain.....even at 4p a year annual dividend. But if the NAV does not represent it's true value and is perhaps higher as perceived by a greedy buyer ? So, what is GSF's true NAV please? Has anyone pulled it apart forensically?

Let it stay lowish for as long as you like for reinvested massive dividends ……and some stratospheric compounding !

You'll all no doubt remember how Ed Bramson muscled into Electra Investment Trust because he'd divined unrealised value. Having got control he realised all the assets and all was distributed to shareholders.....at full value. Short of the winding up of RSE an Ed Bramson .....or Warren Buffett type buying into and gaining control of RSE with a view to value realisation is another possible scenario. There's a ruddy big moat around RSE. It'd be a fine castle to own or control, especially if the castle is worth double or treble what Rightmove says!! I bought a big chunk today. Not enough for control!!!

Forgot to mention that their R&D spend has been big in past years and is projected to remain high. Companies don't spend big money on R&D for fun ........they do it with regard to potential future returns.

Agreed solid company.......Check out Hutchison Meditech (HCM). T/O is 216m dollars. Loss is 47m dollars. Valuation is 2.75 billion dollars! Share price is up 1000% in five years and was up barely at all in the five years prior to that. Now look at AGY. T/O is �65m. (85m dollars) losses are �2m and valuation is �0.25 billion. Share price is 20% lower than it was 10years ago! Whereas HCM is developing sexy anti cancer drugs for a relatively small number of people, AGY is addressing allergies which are much more common......and are more common in developed richer countries. More countries are becoming richer......and allergy prone. Around 75% of AGY shares are owned by investment companies such as Odey and Black Rock (40% of them by Abbott Labs). Why? AGY wants to get into the US . Abbott labs has recently put one of its directors on the board of AGY. Why? Likely to oil the wheels don't you think? In the background there's their new vaccination tech (micro crystalline tyrosine adjuvant.....along with "virus like particles") which has already proven itself an improvement for influenza vaccines and is applicable to other vaccines including Malaria which AGY are involved in. My hunch is that AGY shares could produce a high flying vapour trail like HCM! Give it 3 years maybe. At least a trebling is my guess.