Guinness Asset Management yesterday launched the Guinness Renewable Energy EIS Fund, which will invest in UK companies that qualify for Feed-in Tariffs.
Guinness claims that the fund offers a new type of investment opportunity that combines tax reliefs available under the Enterprise Investment Scheme with the Feed-in Tariffs.
The fund will invest in solar PV, wind and hydro electricity projects. Guinness says that investing across the three technologies mitigates risk and allows it to look for the best returns for investors.
By combining Feed-in Tariff investments with EIS tax relief, Guinness is targeting a net return of 10% to 12% per annum for qualifying investors.
In an innovation for EIS Funds, the Investment Manager will only receive performance fees once a 5% per annum preferred return hurdle has been met.
Fund Manager Shane Gallwey said: “Renewable energy companies that generate electricity under the Feed-in Tariff regime have great visibility of revenues. Combining this with the tax benefits available to EIS qualifying companies enhances an already excellent investment opportunity. We have a first rate team identifying suitable companies for investment.”
Guinness Asset Management is a specialist London-based investment management company that focuses on long-term growth trends. It already runs an Alternative Energy Fund and a Global Energy Fund.