Premier Global Infrastructure Trust – Swings and roundabouts – Premier Global Infrastructure Trust (PGIT) has had a difficult start to 2018. Global markets have been focusing on growth and neglecting areas that are perceived as being defensive, such as utilities and infrastructure. PGIT’s capital structure has amplified the impact on the ordinary share NAV. However, valuation measures have improved significantly. These sectors could once again find favour should markets become more bearish, perhaps as a result of a slowdown in economic activity or the impact of some geopolitical event. After a long period of recovery, the global economy may soon run out of steam. PGIT’s managers recognise these risks and have increased their focus on capital preservation and delivering positive returns.
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; companies that pay a predictable level of income (yieldcos) and investment companies (45%, 32% and 23% of the fund respectively at the end of April 2018).
PGIT : Premier Global Infrastructure Trust – Swings and roundabouts