Renewables rising – Sector primer

With regard to renewables, those lyrics, “Here Comes the Sun”, finally seem to be coming to fruition, as evidenced by the recent performance of many companies in the alternative energy/renewables sector. The recent plethora of yield company spin-offs, as well as similarly missioned “total return” companies, has provided visibility to the sector, validating it further, and offering investors a unique way to play the alternative energy/renewables space in terms of both yield and growth potential. While volatility is likely to be high, overall, we are bullish on the alternative energy/renewables sector, and believe the “total return” concept offers investors the potential for diversification, higher yield and more secured cash flows associated with renewable assets. In this report, we initiate coverage of the alternative energy/renewables sector, and present an overview of climate change, snapshots of the main subsectors and spotlights on select “yieldco/total return” companies in the space.

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