Ecofin Global Utilities and Infrastructure Trust – Utilities and infrastructure at low tide

In recent months, macroeconomic conditions appear to have weighed on the utilities and infrastructure sectors and on the returns generated by Ecofin Global Utilities and Infrastructure (EGL). Now, as the peak of interest rates hopefully draws nearer and economic growth seems to be faltering, EGL’s manager, Jean-Hugues de Lamaze feels that the tide may be about to turn in EGL’s favour. He highlights the strong earnings of the companies in its portfolio, which have exacerbated the undervaluation of some of these.

In common with most London-listed investment companies, EGL has experienced some modest discount widening recently. The board is tackling this with share buy backs, but the current above average discount is potentially a more attractive opportunity for investors looking to get exposure to the trust.