Ecofin Global Utilities and Infrastructure – Delivering the goods
The manager of Ecofin Global Utilities and Infrastructure Trust (EGL), which invests in utilities and other economic infrastructure equities, says that the company’s portfolio has benefitted from having an overweight position in continental European stocks, good stock selection and an upswing in power prices which have moved higher on the back of rising commodity prices.
Earlier this year the manager trimmed exposure to UK utilities, which have suffered as interest rate expectations and regulatory pressures have increased. The manager believes that we are in a new phase of consolidation activity within the utilities sector, which could contribute to future NAV and share price growth for the company. EGL aims to deliver a total return of 6-12% per annum to shareholders over time.
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, North America 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. The portfolio is invested entirely in securities that pay a yield.
EGL : Ecofin Global Utilities and Infrastructure – Delivering the goods