Ecofin Global Utilities and Infrastructure Trust – Unrecognised outperformance

Year-to-date, Ecofin Global Utilities and Infrastructure Trust (EGL)’s manager, Jean-Hugues de Lamaze, has avoided the fall-out from the bankruptcy of Californian utility Pacific Gas & Electric (see page 4), and the trust’s NAV performance has been strong (a total return of 10.9% to the end of March 2019), outperforming both the MSCI World Utilities and S&P Global Infrastructure Indices… Read more

Despite this, EGL has been trading at the wider end of its discount range (it reached a 12-month high of 17.4% on 21st March 2019), which may have provided investors with chances to buy shares at attractive levels. Jean-Hugues feels that EGL’s portfolio is well positioned to benefit from improving earnings quality and cash flow growth from its underlying holdings.

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, NorthAmerica 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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