A much-improved 2019, helped by lower interest rate expectations, translated into 38.3% gains for Premier Global Infrastructure Trust (PGIT) ordinary shareholders. Before the covid-19 panic caused markets to stumble, PGIT was having a strong start to 2020 as well, with the shares hitting 147p on 21 February… Read more
In unsettled markets, the predictable and reliable cash flows generated by utilities and infrastructure make them an attractive safe haven for investors. The predictable response from the US Federal Reserve to the selloff is another interest rate cut. Relatively speaking, PGIT could be in a good place. The manager remains enthused about the earnings and dividend growth prospects of the portfolio.
This is important, as 2020 is going to be a big year for PGIT. It faces its five-yearly continuation vote in May, and its zero dividend preference shares (ZDPs) mature at the end of November. Shareholders will ultimately have the final say but, for our two penn’orth, we’d like to see it continue.
Geared global utilities and infrastructure exposure
PGIT invests in equity and equity-related securities of companies operating in the utilities and infrastructure sectors, with the twin objectives of achieving high income and long-term capital growth from its portfolio. Its ZDPs provide a high level of gearing to its ordinary shares.
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