UK “yieldcos” offer better returns and lower volatility than their counterparts in the US and Canada, according to research by Imperial College Business School Centre for Climate and Finance.

Authors Charles Donovan and Jianjun Li considered risk-adjusted returns for yieldcos in North America and the UK. They found that UK yieldcos generated better risk-adjusted returns than the broad equity market and a range of sectoral indices. In contrast, US yieldcos were characterised by high volatility and relatively poor financial returns.