SEQI Named Shore Capital’s Hot Fund of the Month

Sequoia Economic Infrastructure Income (SEQI): “Fully covered high yielder without the NAV and price volatility seen amongst other alternative trusts.”

Income from Infrastructure Debt

“SEQI’s core return is interest income earned from lending to infrastructure businesses and projects, primarily via private debt (loans and some bonds). This stable cash income supports SEQI’s regular quarterly dividends (historically paid with growth) and comprises most of the total returns.”

“The portfolio is diversified across sectors such as utilities, renewables, telecoms, accommodation and transport — sectors characterised by essential services, long-term cash flows and barriers to entry.”

“It also spans multiple mature jurisdictions (UK, EU, North America, Australia/New Zealand).”

Key Drivers

“Demand for private credit from infrastructure entities is supported by bank lending constraints, which enhances SEQI’s pricing power and the attractiveness of its credit origination.”

“Conservative underwriting, diversification, and emphasis on senior debt help lower default risk and support long-term performance.”

Conclusion

“Access to a well-regarded management team with a proven track record delivering high yield with minimal gearing at fund level and less volatility in both NAV and share price than many other income-focused alternative funds.”

“The current discount represents an attractive entry point, especially should rates continue to drop encouraging investors to seek yield away from risk-free benchmarks.”

Source: Extract reproduced with permission from Shore Capital’s “Hot Funds – January 2026” research note (14 January 2026). All views are those of Shore Capital