(Alliance News) – Ecofin Global Utilities & Infrastructure Trust PLC said on Friday it expects the momentum seen in the first half to continue.
The Chelmsford, England-based fund said net asset value per share rose 6.9% to 196.15 pence as of March 31, from 183.54 pence six months earlier.
Over the same period, the trust recorded a total return of 9.0%, surpassing the 8.2% return of the S&P Global Infrastructure Index.
Two quarterly dividends totaling 4.00 pence per share were paid, an increase of 5.3% on the 3.80 pence paid in the first half of the previous financial year.
Chairman of the Board of Directors, David Simpson, commented on the event: “The performance of the North American part of the portfolio has been encouraging. Exposure to some US utilities had already been increased, selection of securities has been beneficial and utility valuations have finally started to recover.
“Despite falling natural gas and electricity prices in Europe for most of the half-year, the portfolio’s diversified group of pan-European stocks, spanning utilities, transport infrastructure and environmental services, also contributed positively to the net asset value.”
Going forward, the company believes that the utilities in the portfolio will likely continue to grow earnings regardless of economic conditions because much of the revenue is fully contracted or regulated.
The adoption of artificial intelligence and data centers will lead to an increase in demand for electricity, and the trust says there are further opportunities among companies operating and investing to improve environmental services as well as transport infrastructure.
Shares in Ecofin GUI were down 1.2% at 182.79 pence each in London on Friday afternoon.
By Elijah Dale, Alliance News reporter
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