NextEnergy Solar Fund (NESF) has partly offset weaker price forecasts with better generation output, but this was not enough to prevent the Q1 NAV falling to 91.7p from 95.1p. However, the full year dividend target remains in place and covered, and the development pipeline is a source of future potential in our view. With the fund yielding 11%, investors are being more than adequately compensated and with c.50% of revenue linked to RPI there is an additional protection against inflation.
