Greencoat UK Wind: March 2026 Update

• Greencoat UK Wind is one of the largest investment trusts investing in renewable energy infrastructure and is managed by an experienced team.

• The trust aims to provide investors with an annual dividend which increases in line with inflation whilst preserving the capital value of its portfolio.

• It’s increased its dividend target for 2026 to 10.70p per share (from 10.35p per share in 2025). Income is variable and not guaranteed.

How it fits in a portfolio

Greencoat UK Wind aims to provide investors with an annual dividend which increases in line with inflation while preserving the long term capital value of its investment portfolio. It invests solely in onshore and offshore wind farms in the UK.

The trust could diversify an income-focused portfolio, as well as providing some shelter against inflation over the long-term. Investors in investment trusts should be aware the trust can trade at a discount or a premium to its net asset value (NAV).

Investors should remember that investing in a single sector like wind farms or renewable infrastructure is a higher-risk approach compared to a more diversified one. We think investment trusts investing in a specific sector should usually only form a small part of a well-diversified investment portfolio.

Manager

Greencoat UK Wind is managed by an experienced team from Schroders Greencoat LLP. Schroders Greencoat LLP is a specialist manager dedicated to the renewable energy infrastructure sector and is one of the largest dedicated renewable infrastructure managers globally. It was founded in 2009 and invests across lots of different areas, including bioenergy, renewable heat, solar and wind energy infrastructure.

The trust is managed by Matt Ridley and Stephen Packwood. Both have extensive experience in renewable energy infrastructure, including UK wind, and are supported by a wider team of 130 people. This includes an asset management team who look after the day-to-day operations of the wind turbines, aiming to get the most value out of them and improve them where possible.

As with any investment trust, there’s also a board that oversees the company management for its shareholders. With six members it has a broad range of financial and investment experience which should ensure it’s able to hold the trust managers to account.

Process

Greencoat UK wind has a relatively simple investment process. It invests in wind farms that are already up and running, both onshore and offshore, throughout the UK. The electricity generated by these wind farms is then sold, mostly under long term agreements, to utility companies. In the UK all utility companies must purchase a certain amount of their power from green sources, which supports demand for renewable generation.

The UK government operates certain regulatory support schemes for renewable energy, which are directly linked to a measure of inflation. This means that a proportion of the revenues generated by the windfarms are tied to inflation, which provides some protection against rising prices.

The trust aims to pay a dividend that grows in line with inflation, supported by these revenues. Any excess revenue is reinvested either in new assets or to improve existing assets. This should help to preserve the capital value of the trust over time.

From April 2026, the government will change the inflation measure used in one of the support schemes from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI). CPI is usually lower, so this will reduce the inflation-linked revenue for some of the trust’s assets. To reflect this, the trust has updated its dividend policy. From 2026, it will aim for its annual dividend to increase in line with CPI instead of RPI.

Investors should be aware that regulatory risk can be greater in this sector, and changes in regulation could impact returns.

As of 31 December, the trust owned 49 different wind farms spread across the UK. The split between the value of onshore and offshore wind farms was 57% to 43%.

The main activity in the trust during its most recent financial year (to end of December 2025) was the sale of a 32.7% stake in Andershaw and Bishopthorpe onshore wind farms, as well as a 1.95% stake in the Hornsea 1 offshore wind farm. They were all made at net asset value, meaning there was no profit or loss associated with the transactions relative to the latest valuation of these assets. The proceeds were used to repay debt, buy back shares and provide greater flexibility for opportunities over the medium-term.

The trust uses gearing (borrowing to invest) which may increase risk. At the end of December 2025, gearing was at 42.5%, up from 39.7% a year earlier.

Culture

Greencoat UK Wind was the first renewable infrastructure fund to list on the London Stock Exchange. The trust is domiciled in the UK and is a part of the FTSE 250 index of shares. It’s the UK's largest listed renewable infrastructure fund.

The trust is managed by Schroders Greencoat. Greencoat Capital LLP was founded in 2009 and acquired by Schroders Capital in 2022. It’s one of the largest dedicated renewable infrastructure managers globally, managing around £9.4bn of assets. It invests in a range of renewable energy and energy transition assets in the US, Europe and Asia. Schroders is a UK-listed multinational asset management company that employs thousands of investment professionals across 38 locations around the globe.

ESG

Renewable energy generation and storage is an asset class which is naturally compatible with sustainability objectives. Generating electricity from renewable sources such as wind is an integral part of the transition to net zero and should help the UK to move away from generating electricity from fossil fuels.

Schroders Greencoat consider ESG factors both before investing in an asset and in the ongoing management of that asset. At each individual site ESG processes are assessed monthly by its asset management team. Health and safety issues are of primary importance and Health and Safety reports are produced quarterly.

Greencoat UK Wind publishes an annual sustainability report which can be found on their website.

The trust has adopted a Sustainability Focus label under the new Sustainability Disclosure Requirements set out by the Financial Conduct Authority.

Cost

The ongoing annual charge over the trust’s financial year to 31 December 2025 was 0.83%, down from 0.95% in the previous year. Investors should refer to the latest annual reports and accounts, and Key Investor Information Document for details of the risks and charging structure.

We recently made some changes to the amount clients pay to invest with us. Find out more about these changes

The annual charge to hold investment trusts in the HL ISA, SIPP, or Fund & Share Account is 0.35% (capped at £150 p.a. in each account) and 0.25% in the HL Lifetime ISA (capped at £45 p.a.). There are no charges from HL to hold investment trusts within the HL Junior ISA. As investment trusts trade like shares, both a buy and sell instruction will be subject to the HL share dealing charges.

Performance

Since the trust launched in March 2013 it’s returned 99.63%* for shareholders.

A lot of its long-term return has come from dividends, as the trust has a good track record of paying a reliable income stream. Past performance isn’t a guide to the future.

In the trust’s last financial year to end of December 2025, its share price fell 15.13% compared with a 0.92% rise for the AIC Investment Trust – Renewable Energy Infrastructure peer group. The NAV return over the same period was -4.91%.

The discount (the difference between the trust’s share price and NAV) also widened, averaging 23% during the year, up from 14% the year before. At the time of writing, the trust trades at a discount of 26.45%.

Much of the fall in NAV was due to lower power prices and the wind farms producing less electricity than expected, as wind speeds were much lower in the first half of the year. In addition, the move from RPI to CPI for some fixed revenues led the managers to reduce their future revenue forecasts, which lowered the NAV by just under 2%.

The trust paid out £226.8m of dividends over the year. This equates to a dividend per share of 10.35p. For the financial year ending December 2026 the board have increased the dividend target to 10.70p per share. This is in line with CPI at the end of December which was 3.4%. Remember that dividends are variable and not guaranteed.

Over 2025 the trust bought back £109m of shares at an average discount of 23%, which helped increase the NAV per share.