Ecofin Global Utilities and Infrastructure Trust plc Fund Data

Resilient global activity and strong corporate earnings supported more cyclical pockets of the market in August. In this context, EGL NAV performance (-2.9%, in GBP total return terms) was broadly in line with the MSCI World Utilities index (-2.6%) but underperformed the S&P Global Infrastructure index (-0.2%) and the MSCI World index (+0.5%). This is largely due to EGL's utilities bias and despite having increased exposure to transportation infrastructure to c.17% on average over the month from c.11% in January. Strength in sterling (+c.2.5% vs. USD) has also been detrimental to the NAV performance. Year-to-date, EGL NAV performance (+18.1%) remains well ahead of underlying sector indices such as S&P Global Infrastructure (+8.7%) and MSCI World Utilities (+9.4%). APAC ex-Japan holdings were the main positive performance contributors (+1.6%), while the Europe ex-UK book was flat and the UK (-4.7%) and North America (-5.1%) both detracted. At sub-sector level, transportation infrastructure was the top performance contributor (+3.4%, notably with ENAV +9.4%, Flughafen Zurich +5.7% and AENA +5.1%). Renewables & nuclear (-5.3%, with Constellation -13.2%, Drax -8.4%) and integrated utilities (-4.1%, with Vistra -11.2%, Public Service Enterprise -10.2%, BKW -8.5%) were the main detractors while regulated utilities held up relatively better (-2.2%). IPP and data centre dealmaking was light in the month of August, with no new data centre PPAs of scale signed across the space. EGL data centre exposed names Constellation (-13.2%), Vistra (-11.2%) and Public Service Enterprise (-10.2%) underperformed the group given the lack of announcements on second quarter earnings. For the regulated utilities, the second quarter reaffirmed the robust data centre backlog in most jurisdictions. In August, the Treasury Department provided revised guidance on renewable project eligibility for tax credits, which should allow developers (NextEra and AES) and utilities with renewables to execute on their plans through the end of the decade. In Europe, the French prime minister Francois Bayrou called a vote of no confidence in his minority government, scheduled for September 8th, after he was unable to gather support for budget cuts. Parties forming a majority of seats in the French parliament said they would vote against the government, resulting in heightened volatility in French markets. Bayrou's budget plan, announced in mid-July, aimed to reduce France's fiscal deficit by cutting public spending, including freezing welfare benefits and eliminating public holidays, but this austerity approach faced widespread opposition from both left and right factions, intensifying political divisions. Despite their substantial international exposure, French holdings underperformed in this uncertain context (Engie -9.8%, Veolia -4.9%, Vinci -4.5%). During the month, we took some profits in strong year-to-date performers such as RWE (+27.5%), Snam (+33.2%) and AENA (+24.2%). We also increased our new position in Pennon, added to our Drax holding on weakness and topped up Xcel Energy which has been lagging so far this year. Portfolio gearing remained broadly similar this month at 11.9%, following the reduction highlighted in July (13.9% to 10.8%).

Resilient global activity and strong corporate earnings supported more cyclical pockets of the market in August. In this context, EGL NAV performance (-2.9%, in GBP total return terms) was broadly in line with the MSCI World Utilities index (-2.6%) but underperformed the S&P Global Infrastructure index (-0.2%) and the MSCI World index (+0.5%). This is largely due to EGL's utilities bias and despite having increased exposure to transportation infrastructure to c.17% on average over the month from c.11% in January. Strength in sterling (+c.2.5% vs. USD) has also been detrimental to the NAV performance. Year-to-date, EGL NAV performance (+18.1%) remains well ahead of underlying sector indices such as S&P Global Infrastructure (+8.7%) and MSCI World Utilities (+9.4%). APAC ex-Japan holdings were the main positive performance contributors (+1.6%), while the Europe ex-UK book was flat and the UK (-4.7%) and North America (-5.1%) both detracted. At sub-sector level, transportation infrastructure was the top performance contributor (+3.4%, notably with ENAV +9.4%, Flughafen Zurich +5.7% and AENA +5.1%). Renewables & nuclear (-5.3%, with Constellation -13.2%, Drax -8.4%) and integrated utilities (-4.1%, with Vistra -11.2%, Public Service Enterprise -10.2%, BKW -8.5%) were the main detractors while regulated utilities held up relatively better (-2.2%). IPP and data centre dealmaking was light in the month of August, with no new data centre PPAs of scale signed across the space. EGL data centre exposed names Constellation (-13.2%), Vistra (-11.2%) and Public Service Enterprise (-10.2%) underperformed the group given the lack of announcements on second quarter earnings. For the regulated utilities, the second quarter reaffirmed the robust data centre backlog in most jurisdictions. In August, the Treasury Department provided revised guidance on renewable project eligibility for tax credits, which should allow developers (NextEra and AES) and utilities with renewables to execute on their plans through the end of the decade. In Europe, the French prime minister Francois Bayrou called a vote of no confidence in his minority government, scheduled for September 8th, after he was unable to gather support for budget cuts. Parties forming a majority of seats in the French parliament said they would vote against the government, resulting in heightened volatility in French markets. Bayrou's budget plan, announced in mid-July, aimed to reduce France's fiscal deficit by cutting public spending, including freezing welfare benefits and eliminating public holidays, but this austerity approach faced widespread opposition from both left and right factions, intensifying political divisions. Despite their substantial international exposure, French holdings underperformed in this uncertain context (Engie -9.8%, Veolia -4.9%, Vinci -4.5%). During the month, we took some profits in strong year-to-date performers such as RWE (+27.5%), Snam (+33.2%) and AENA (+24.2%). We also increased our new position in Pennon, added to our Drax holding on weakness and topped up Xcel Energy which has been lagging so far this year. Portfolio gearing remained broadly similar this month at 11.9%, following the reduction highlighted in July (13.9% to 10.8%).