Ecofin Global Utilities and Infrastructure Trust – Strong outlook as macro gloom lifts

Over the past 12 months, Ecofin Global Utilities and Infrastructure (EGL), along with the broader utilities and infrastructure sector, appears to have been at the mercy of broader macro-economic conditions. However, the managers note that its recent performance in no way diminishes the secular opportunity that exists for the fund, which, they believe should become more apparent as interest rates retreat from their highs. The company has exposure to a suite of investments that the managers believe stand to benefit from an ever-growing list of tailwinds as global decarbonisation and electrification trends gather momentum. They also note that earnings growth within the portfolio has remained strong, while indiscriminate selling has driven some valuations down to historically low levels, providing what they believe to be an incredibly attractive opportunity for long-term investors.