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- Solid returns for Sequoia Economic Infrastructure despite macro challenges
Sequoia Economic Infrastructure (SEQI) has announced its annual results for the year ended 31 March 2024. The company delivered a NAV total return of 8.1% for the year, in excess of target return of 7-8%. Total dividends were 6.875p per ordinary share, in line with the target of a 10% increase. The share price total return was 9.6%
Commenting on the performance and the company’s positioning, the adviser noted:
“Throughout the fiscal year, our persistent strategic focus has been on the continuous development and administration of a broad-based portfolio of private debt investments, in a diverse range of infrastructure sectors and subsectors, located in regions with low political/regulatory risk. Our main goal has been to maintain our projected returns while prioritising the reduction of credit risk. During this period, we have maintained our cautious investment strategies such as keeping a substantial part of the portfolio in resilient sectors, prioritising senior debt over mezzanine debt and preserving or gradually improving the portfolio’s credit quality.”
The adviser added that current portfolio highlights include:
Commenting on the results, chair James Stewart added:
“I am pleased to announce another resilient year of performance, despite ongoing challenges in the macroeconomic backdrop. Whilst I remain mindful of the continuing economic uncertainty, I am confident that the company has the ability to remain agile in the face of changing market conditions, as seen in the strong track record of resilience SEQI has built in the past nine years. We have continued to prioritise the credit quality of our portfolio and this strategy which, combined with ongoing market demand for infrastructure debt, enables the investment adviser to be extremely selective as it considers the strong pipeline of future opportunities. We believe that the current yield opportunity presented by the portfolio should allow the company to deliver both stable income and improved NAV in the year ahead. The board remains focussed on the discount to NAV at which the company’s shares trade and continues to address this proactively against the challenging market backdrop.”
SEQI : Solid returns for Sequoia Economic Infrastructure despite macro challenges
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