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LONDON - Sequoia Economic Infrastructure Income Fund (LSE:SEQI) reported a net asset value (NAV) total return of 6.1% for the year ending March 31, 2024, according to a statement based on a press release.
The fund’s share price total return was 5.3% for the period, resulting in a slight widening of the discount to 15.4% from 13.5%. Since the fiscal year end, the discount has narrowed to 12%.
SEQI paid fully cash-covered dividends totaling 6.875p during the period, unchanged from the previous year and in line with targets. These dividends represent a historic yield of 8.6% as of June 26, 2025.
The fund’s allocation to private debt decreased from 97% to 91% over the year as investments in public bonds were made to enhance liquidity and sector diversification. One private loan was refinanced publicly with SEQI’s participation.
Credit quality saw a slight improvement, with senior secured loans increasing by approximately 1% compared to the previous year. The weighted average maturity, duration, and yield-to-maturity all decreased marginally.
The allocation to fixed-rate debt increased to 59.9% from 58.6%, reflecting the fund managers’ anticipation of interest rate cuts in the coming months and years.
Since July 2022, the board has repurchased 13% of the share capital in an effort to address the discount, which has added 1.8p to NAV per share. Cash coverage of the dividend declined slightly from 1.06x to 1x during the year.
SEQI primarily invests in infrastructure debt across sectors including digital infrastructure, data centers, power grid, renewables, roads, ports, and railways.
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