Between the end of March and end of September, Sequoia Economic Infrastructure Income Fund (LON:SEQI) has boasted “solid progress despite [a] challenging environment”.
During the six-month period, the company reported a share price return of 14.4% during the period, with a 37.8% increase posted in the three-month period between March 18 and June 18 2020.
Speaking on its portfolio structure, the company boasts 74 investments across 8 sectors, 28 sub-sectors and 12 mature jurisdictions. Specialising in infrastructure debt, 93% of its investments are in private debt, with 63% of its portfolio being floating rate investments, short weighted average life of 5.6 years, and a weighted average equity cushion of 34%.
On a bright note, the Sequoia EII Fund’s ongoing charges ratio fell from 0.96% to 0.89% during the period, while its dividends rose from 96.69p a share, to 100.17p – with a 2020/21 target of 6.25p. Further, the company’s total net assets grew from £1.599 billion, to £1.659 billion, and it stated that the “ESG score of the portfolio is on a long-term and sustainable upward trend”.
On a sad note for prospective new entrants, the fund finished the six-month period 14.4p more expensive than where it began. This saw its price swing from a 2.8% discount, to a 4.2% premium.
Speaking on the Sequoia EII Fund’s performance, Robert Jennings, Chairman of the Company, said:“Amid a very uncertain and testing environment which endured throughout the first six months of our financial year, I am pleased to report that overall our portfolio has shown resilience. NAV per share has risen from 96.69p to 100.17p after paying dividends of 3.125p per share. With vaccine protection expected to be rolled out over the coming months, it seems reasonable to hope that the economic environment in the second half will be less challenging. Our expectation that our target dividend pay-out for 2020/21 will be fully cash covered reinforces the Board’s confidence in our ability to continue delivering on the Company’s objectives.”
Despite the seemingly positive update, Sequoia Economic Infrastructure Income Fund shares were trading down 0.55% at the end of Monday trading, at 107.60p. This price is consistent with its six-month trends, but short of its six-month high of 110.00p per share, seen on August 21.