Ecofin Global Utilities and Infrastructure Trust – Structural growth, low volatility and high income
Ecofin Global Utilities and Infrastructure Trust (EGL) invests in utilities and other economic infrastructure equities (see definition on page 4) and is looking to deliver a total return (capital gains and income) of 6-12% per annum to shareholders over time. These sectors are traditionally less volatile than global equities in general, and the manager expects strong demand for infrastructure spending globally and attractive returns for providers of capital. EGL, with its focus on growth, capital preservation and a high level of income (EGL currently offers a yield of 5.2%), could be attractive to investors looking for stable income. The current discount of 12.9% may also offer an opportunity.
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, through investing principally in a portfolio of equity and equity‐related securities of utility and infrastructure companies which are listed on recognised stock exchanges in European countries, the United States 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 to achieve this. The portfolio is invested entirely in securities that pay a yield.