Ecofin Global Utilities and Infrastructure Trust plc (EGL) Hits 5-Year Mark with Strong Performance
We are socially minded, ESG-attentive investors, harnessing years of expertise investing in sustainable infrastructure, energy transition, clean water & environment and social impact.
Ecofin is marking the 5-year anniversary of Ecofin Global Utilities and Infrastructure Trust plc (“EGL” or “the Company”), the closed-end fund it manages which invests in listed infrastructure securities (utilities, transportation and environmental services) globally. EGL targets a total return (including dividends) of 6-12%, and since the Company’s admission to the London Stock Exchange on 26 September, 2016, has grown net assets significantly (by 71.2%, or 11.3% per annum) and delivered a total shareholder return of 120.2%, or 17.1% per annum (to 30 September, 2021, assuming a reinvestment of dividends), significantly outperforming the returns on the sector indices (the S&P Global Infrastructure Index and the MSCI World Utilities Index) and the MSCI ACWI over the same period.
Ecofin’s listed infrastructure strategy seeks to deliver long-term capital growth and attractive levels of dividend income to shareholders by investing in companies whose core assets respond to essential needs, operate within solid regulatory frameworks, and have predictable and sustainable cash flows. Infrastructure globally requires major investment as a significant proportion is obsolete, in poor condition, or inadequate to cope with the development of and demand for renewable energies. The policy environment is rapidly becoming much more supportive too, in view of increasingly ambitious government and corporate sustainability commitments, just as renewables have become the cheapest sources of electricity in most areas of the world. Capital expenditure targeted at the decarbonisation of the energy system underpins the profitable growth which EGL’s portfolio companies will enjoy over the coming years.
“Business models in EGL’s sectors are rapidly adapting to a world which increasingly prioritizes decarbonisation, prompting a gradual re-rating of the investment universe and a narrowing of the valuation gap with equivalent privately held infrastructure assets,” said Jean-Hugues de Lamaze, EGL’s Portfolio Manager. “Companies are on the verge of substantial improvements in their growth trajectories driven by shifts in capital allocation, whether through transformational transactions (acquisitions, disposals or spin-offs) or more gradually. These corporate actions and recalibrations are offering, we believe, significant value-creation opportunities.”
| Performance (to 30 September 2021) | ||||
|
(all total returns in £) |
1 Y % |
3 Y % |
5 Y % |
Since Admission* % |
|
EGL NAV |
22.9 |
52.4 |
73.4 |
71.2 |
|
EGL Share Price |
28.9 |
80.1 |
105.3 |
120.2 |
|
S&P Global Infrastructure Index |
17.1 |
14.5 |
23.1 |
22.1 |
|
MSCI World Utilities Index |
3.5 |
23.3 |
37.0 |
34.1 |
|
*26 September 2016. |
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|
Performance is shown on a total return basis, i.e., assuming reinvestment of dividends. |
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Please click here for standardized performance and to learn more about the Company.
Performance presented is in Sterling. Past performance is not a guarantee of future results.
About Ecofin
Ecofin is a sustainable investment firm dedicated to uniting ecology and finance. Our mission is to generate strong risk-adjusted returns while optimizing investors’ impact on society. We are socially minded, ESG-attentive investors, harnessing years of expertise investing in sustainable infrastructure, energy transition, clean water & environment and social impact. Our strategies are accessible through a variety of investment solutions and seek to achieve positive impacts that align with UN Sustainable Development Goals by addressing pressing global issues surrounding climate action, clean energy, water, education, healthcare and sustainable communities. Ecofin Investments, LLC is the parent of registered investment advisers Ecofin Advisors, LLC and Ecofin Advisors Limited (collectively "Ecofin"). To learn more, please visit www.ecofininvest.com.
This document is issued in relation to Ecofin Global Utilities and Infrastructure Trust plc (“EGL”) by Ecofin Advisors Limited (the “Investment Manager”) which is authorised and regulated by the Financial Conduct Authority. EGL is an investment trust incorporated in the United Kingdom and whose shares are listed on the premium segment of the Official List and trade on the main market for listed securities of the London Stock Exchange. The promotion of EGL and the distribution of this document inside and outside the United Kingdom is also restricted by law.
This document does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, any shares in EGL. The information contained in this document is for background purposes only and does not purport to be full or complete. The Investment Manager believes that the source of the information disclosed in this document is reliable. However, no representation, warranty or undertaking, express or implied, is given as to the completeness of the information contained in this document by the Investment Manager, and no liability is accepted by the Investment Manager for the completeness of any such information.
The S&P Global Infrastructure Index is designed to track 75 companies from around the world chosen to represent the listed infrastructure industry while maintaining liquidity and tradability. To create diversified exposure, the index includes three distinct infrastructure clusters: energy, transportation, and utilities. The MSCI World Utilities Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets in the utilities sector. The MSCI ACWI Index captures large and mid cap representation across developed markets and emerging markets countries. The index covers approximately 85% of the global investable equity opportunity set. It is not possible to invest directly in an index.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although EGL and Ecofin believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in EGL’s reports. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, EGL and Ecofin do not assume a duty to update this forward-looking statement.
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