Greencoat UK Wind (UKW)’s managers continue to build a formidable portfolio of wind farms in the UK. Whilst the market for wind farms in the UK is currently competitive, the team have been able to raise and deploy significant amounts of capital during the last financial year – all at rates of return that we think should enable the trust to meet its total return objective of 8-9% net of fees. Increased size brings efficiencies in many ways. As we discuss in Charges, the OCF is now sub 1% per annum. Size also allows operational efficiencies, but perhaps most importantly allows the trust to buy much larger assets. UKW’s increased scale allows it to invest in the burgeoning market for offshore wind farms more effectively, which currently represents 30% of the portfolio. UKW has twin aims of delivering a high, RPI-linked income return for shareholders whilst maintaining capital value in real terms. 2020 has shown the strength and resilience of UKW’s relatively simple model, with the trust generating a covered dividend and continuing to state its ambition to grow the dividend in line with inflation. At the current price, we estimate that the prospective yield is 5.5%. Excluding income, the NAV has grown from launch at 98p to 120.4p, growth of 22.9% which compares with RPI growth of 18.8%. UKW has historically traded at a significant premium to the peer group average. UKW now trades on a premium to NAV of 7.4%, below the five-year average for the trust and relative to the weighted average for the peer group of c. 10%.