Sequoia Economic Infrastructure Income Fund Limited Ptg.Shs GBP · LSE:SEQI
Sequoia Economic Infrastructure Income Fund Limited Ptg.Shs GBP — Sequoia Economic Infrastructure Income Fund — FY2023 Earnings Presentation
13 slides from Sequoia Economic Infrastructure Income Fund Limited Ptg.Shs GBP's earnings presentation, Jun 29, 2023
Slide 1: Sequoia Economic Infrastructure Income Fund Annual Results FY2023
Sequoia Economic Infrastructure Income Fund Annual results for the year to 31 March 2023 29 June 2023
Slide 2: Table of contents
Table of contents Introduction 2 Highlights of Annual Results for FY2023 3 NAV bridge for the financial year 4 Pull-to-par upside 5 SEQI portfolio at a glance 6 Portfolio credit performance 7 Addressing the NAV discount 8 Environmental, social & governance 9 Closing remarks 10 1
Slide 3: Introduction – Annual Results for FY2023
Introduction – Annual Results for FY2023 SEQI: A platform with scale, proven through cycles • 8+ year track record of meeting dividend targets, weathering an extraordinary range of market conditions • Market-leading listed credit fund with scale: NAV of c. £1.6bn • Low costs at 96bp per annum OCR •
Slide 4: Highlights of Annual Results for FY2023
Highlights of Annual Results for FY2023 (Year to) 31 March 2023 (Year to) 31 March 2022 Portfolio yield-to-maturity 11.95% 8.4% Total net assets £1.62bn £1.78bn Net asset value (“NAV”) per Ordinary Share 93.26p 100.50p Ordinary Share Price (1) 80.4p 102.8p Ordinary Share premium/(discount) to NAV (1
Slide 5: NAV per share bridge for FY2023
NAV per share bridge for FY2023 +10.61 +0.19 Expected to be offset over time by 6.8p of “pull to par” upside (1) 100.50p -9.86 -0.24 +0.18 99.67p -1.71 93.26p -6.41 (1) Pull to par is the expected recovery of NAV reductions that have occurred as a result of the marking-to-market of loans in a rising
Slide 6: SEQI – Pull-to-Par on the portfolio
SEQI – Pull-to-Par on the portfolio Environmental, social & governance Pull-to-par impact on NAV per share(1) (Aggregate of 6.8p per share as at 31 March 2023) 93.26p The “Pull-to-Par” is the unwinding of the NAV per discount rate applied to the portfolio valuation share (mainly in relation to mark-
Slide 7: SEQI portfolio at a glance – March 2023
SEQI portfolio at a glance – 31 March 2023 Portfolio characteristics Portfolio categorisations Number of investments 68 Region UK, 26% North America, 50% Europe, 24% Largest / average size (£m) 61.0 / 23.9 Ranking Senior, 57% Mezz, 8% HoldCo, 35% Average maturity / average life (yrs.) 4.1 / 3.5 Inte
Slide 8: SEQI's portfolio credit performance
SEQI’s portfolio credit performance • Managing some difficult credits is an inevitable – and Credit performance of SEQI vs. similarly-rated international important – part of successful high yield infrastructure Corporate and Infrastructure Credits portfolio management Average 3.5% 70% Recovery • Bro
Slide 9: Addressing the discount to NAV
Addressing the discount to NAV Background • SEQI has not been immune to the broader sell-off in listed alternatives • Amongst other facts, this largely results from substantial “portfolio repositioning” by some UK investors, generally a reaction to exceptional changes in “risk-free” SEQI – NAV per s
Slide 10: Environmental, social & governance
Environmental, social & governance SEQI has implemented a comprehensive sustainability program incorporating broad ESG considerations in its approach to investing and asset management, including a detailed externally-assessed investment scoring system SEQI aims to align its investments with the UN S
Slide 11: Closing remarks
Closing remarks SEQI: offering attractive income and value as the current interest rate cycle peaks Infrastructure backing, plus high proportion of Excellent Portfolio Major themes driving pipeline: energy transition, floating rate loans and short average maturity resilience origination digitalisati
Slide 12: Important information
Important information THE CONTENTS OF THIS DOCUMENT AND THE PRESENTATION ARE STRICTLY CONFIDENTIAL AND MAY NOT BE COPIED, DISTRIBUTED, PUBLISHED OR REPRODUCED IN WHOLE OR IN PART, OR DISCLOSED OR DISTRIBUTED BY RECIPIENTS TO ANY OTHER PERSON. ANY RECIPIENT OF THIS DOCUMENT AND THE PRESENTATION AGREE
Slide 13: Important information (continued)
Important information Continued THE COMPANY HAS NOT BEEN, AND HAS NO INTENTION TO BE, REGISTERED UNDER THE U.S. INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "INVESTMENT COMPANY ACT") AND INVESTORS WILL NOT BE ENTITLED TO THE BENEFITS OF THAT ACT. THE SECURITIES DESCRIBED IN THIS DOCUMENT AND THE
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