Premier Global Infrastructure Trust’s (PGIT’s) ordinary shares have provided an NAV total return of 34.4% during the last 12 months, boosted by the trust’s split capital structure (see page 13). The returns have been achieved despite PGIT having a significant allocation to Asia, and particularly China, which has faced a headwind from its trade dispute with the US. While the share prices of Asian growth equities struggled, underlying performance was nonetheless strong. PGIT’s managers believe that there is the prospect for these stocks to re-rate when markets are less focused on the big picture and more on fundamentals of the individual companies. After revenue growth of 13.3% in the first half of 2019, the manager expects to see decent growth in the second half, which bodes well for future dividends.
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. The portfolio has a strong emphasis on emerging markets, smaller companies, special situations and lower weightings to traditional, developed-market utility companies. It is split into three distinct areas: income equities; growth equities; and companies that pay a predictable level of income (yieldcos) and investment companies. Its zero dividend preference shares (ZDPs) provide a high level of gearing to its ordinary shares.
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