Guinness launches £10m renewable energy investment fund

Guinness Asset Management has launched a new Enterprise Investment Scheme (EIS) fund that will seek opportunities in renewable energy and energy efficiency.

The fund is the third of its kind to be unveiled by the investment management company, and will “target attractive risk-weighted returns by making investments in Sustainable Infrastructure companies which have predictable revenues, low technology risk and low correlation with other asset classes”.

Guinness EIS Fund 3 will look to the renewable energy and energy efficiency industries for investment opportunities.

Shane Gallwey, one of three managers of the fund, told Blue & Green Tomorrow that Guinness was “excited” about the launch of the fund, and highlighted the poignancy of the release given the context of the current tax environment.

The tax benefits from being part of an EIS include Income Tax relief, Capital Gains Tax deferral/exemption and Inheritance Tax exemption.

“We expect many new investors to make EIS investments in 2012 as a means of diversifying their portfolios, generating returns with low correlations to the equity markets and making investments that have attractive tax benefits”, Gallwey said.

“The Guinness EIS Fund 3 is making investments at the lower-risk end of the universe of EIS funds and is therefore an attractive place for investors to make their first foray into EIS investing.”

Gallwey said the fund’s aim was to “preserve capital, not take binary risks”, so investment in fledgling renewable energy projects is unlikely.

News like this is viewed as welcome reading for the sustainable investment sector, especially following recent SRI (socially responsible investment) team closures by Aviva and Henderson.

EIS investments look set to be a positive step forward for sustainable investment. To join the movement, get in touch with your IFA. If you don’t have one, fill in our online form and we’ll connect you with a specialist ethical adviser.

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