Investors in renewable energy funds could be set for significant losses after the entire sector shed nearly £300m following damaging news on falling energy prices.
Investment trust John Laing Environmental Assets surprised investors after it lowered expectations on future power prices by 7.5pc. This sent shockwaves through the industry with rival investment trusts all suffering.
The six largest funds – which together hold more than £6bn of investors’ money via generating renewable energy – all saw significant share price falls. John Laing dropped more than 6pc.
The cut in future power prices would be a boon for consumers but badly affect the thousands of investors that have diversified their portfolios into renewable energy and taken advantage of the steady income on offer….