Ecofin Global Utilities and Infrastructure Trust (EGL) has just had its third birthday, and it has much to celebrate. Since launch, the trust has built a compelling track record (NAV and share price total returns of 44.9% and 50.8% respectively) while outperforming a range of comparable indices, including MSCI World Utilities, S&P Global Infrastructure, MSCI World and MSCI UK… Read more
EGL has achieved this while providing an attractive dividend yield and less volatile returns than the MSCI World Index, and against a backdrop that has been challenging for the sectors it focuses on. EGL has recently benefitted from increased investor awareness, following some high-profile press coverage, and its discount has moved in. However, for a number of reasons (see page 13), there is the potential that this could narrow further, to the point where the trust could start to expand, particularly if the manager continues to provide sector-beating returns.
Developed markets utilities and other economic infrastructure exposure
EGL seeks to provide a high, secure dividend yield and to realise long‐term growth, while taking care to preserve shareholders’ capital. It invests principally in the equity of utility and infrastructure companies which are listed on recognised stock exchanges in Europe, North America and other developed OECD countries. It targets a dividend yield of at least 4% per annum on its net assets, paid quarterly, and can use gearing and distributable reserves to achieve this.
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