2025 could be pivotal year for the listed infrastructure investment company sector
Against the current uncertain market and geopolitical backdrop, Colette Ord, Head of Real Estate, Infrastructure and Renewable Funds Research, Andrew Rees, Vice President, Investment Companies Research, and Justin Bell, Director, Investment Companies Sales, hosted a webinar last week to share their insights on the listed Infrastructure Investment Company (IIC) space and highlight their preferred exposure within it.
Depressed sentiment is currently impacting the IIC sector, with an average discount to net asset value of 29% and a yield of 7.9%, which is even wider than that seen during the Global Financial Crisis. Nonetheless, the team explained why they feel 2025 will be a pivotal year for the sector, as boards respond more decisively to investor pressure to close discounts.
They consider there is potential for positive share price momentum from here and longer-term, expect M&A to result in a smaller, but more liquid, high-quality peer group, which can part self-fund growth potential and continue to provide investors with lower-risk access to major infrastructure themes.
The team advocates owning a basket of infrastructure strategies to access the best mix of risk-adjusted returns between capital and income growth. Their core buys are businesses that they believe have potential to deliver, or exceed, target returns over the long-term and navigate the current market malaise as a result of high-quality portfolios and robust capital structures.
To find out more about our investment companies offering, visit funds.numis.com.
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Against the current uncertain market and geopolitical backdrop, Colette Ord, Head of Real Estate, Infrastructure and Renewable Funds Research, Andrew Rees, Vice President, Investment Companies Research, and Justin Bell, Director, Investment Companies Sales, hosted a webinar last week to share their insights on the listed Infrastructure Investment Company (IIC) space and highlight their preferred exposure within it.
Depressed sentiment is currently impacting the IIC sector, with an average discount to net asset value of 29% and a yield of 7.9%, which is even wider than that seen during the Global Financial Crisis. Nonetheless, the team explained why they feel 2025 will be a pivotal year for the sector, as boards respond more decisively to investor pressure to close discounts.
They consider there is potential for positive share price momentum from here and longer-term, expect M&A to result in a smaller, but more liquid, high-quality peer group, which can part self-fund growth potential and continue to provide investors with lower-risk access to major infrastructure themes.
The team advocates owning a basket of infrastructure strategies to access the best mix of risk-adjusted returns between capital and income growth. Their core buys are businesses that they believe have potential to deliver, or exceed, target returns over the long-term and navigate the current market malaise as a result of high-quality portfolios and robust capital structures.
To find out more about our investment companies offering, visit funds.numis.com.