Renewable Energy in the EU is an attractive asset class:

• EU Directive requires c.20% RE by 2020…take-up is currently estimated at 8%
• Energy prices likely to increase, driven by the continuing growth of BRIC and other emerging economies and the increasing marginal cost of exploiting hydrocarbon reserves
• Political desire to lower carbon intensity and increase sovereign energy independence
• Energy has historically been a good hedge against inflation
• Systems costs are generally decreasing and likely to decline further in key sectors (e.g. solar PV)

However, banks are currently less willing or indeed able to provide long-term investment finance and so more equity will be required to deliver projects.

We believe these supply and demand side factors create good opportunities for above average risk adjusted returns for our investment funds.