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 — FY2021 Earnings Presentation
21 slides from Sequoia Economic Infrastructure Income Fund Limited Ptg.Shs GBP's earnings presentation, June 2021
Slide 1: Annual results FY21
Annual results FY21 June 2021
Slide 2: Overview of SEQI
Overview of SEQI The Sequoia Economic Infrastructure Income Fund (SEQI) offers a diversified portfolio of private loans backed by infrastructure projects • SEQI is a mature fund with a track record of over six years. Since the IPO and through the end of March 2021, the total return has been approx.
Slide 3: Financial highlights
SEQUOIA INVESTMENT Financial highlights
Slide 4: Goals for the year
Goals for the year Goal Commetary Achieved The fund is fully invested with a portfolio that yields in Gross portfolio return of 8-9% excess of 8% NAV growth of 6.49p per share, arising predominantly from Manage the portfolio responsibly through the Covid-19 period credit spreads tightening over th
Slide 5: Financial highlights for the year
Financial highlights for the year Highlight March 2021 Change on year Comments Driven by: • Capital raise of £110 million in February 2021 plus Total net assets £1.82 billion Increase of £219 million, or 13.7% • NAV growth of £109 million (net of dividends paid) This is the increase after the paymen
Slide 6: NAV bridge for the Financial Year
NAV bridge for the Financial Year Pence per share 5
Slide 7: Six-year track record shows strong, steady performance
Six-year track record shows strong, steady performance Growth in the size of the fund Relative performance Performance attribution (£ millions) (cumulative total return since the inception of the fund) (2) (pence per share) Share price 42% +42.7 Capital Raising and Deployment 40 since IPO 145 SEQI t
Slide 8: Portfolio and Performance of the Company during the financial year
Portfolio and Performance of the Company during the financial year 7
Slide 9: Managing the portfolio through the Covid period
Managing the portfolio through the Covid period Selective approach to new investments Carefully managing loans exposed to Covid lockdowns • SEQI’s investment strategy is to add very selectively to the portfolio. Overall, the portfolio demonstrated credit resilience. Some sectors The fund rejects abo
Slide 10: Portfolio generates a 9.0% gross return diversified across sectors
Portfolio generates a 9.0% gross return diversified across sectors 15 largest investments (1) Cash-on- Yield to Value £m % of Type Transaction name Ranking Ccy Sector Sub-sector cash mat. / (2) NAV yield worst Private Infinis Energy Senior GBP 65.0 3.6% Renewables Landfill gas 5.00 5.00 Private Madr
Slide 11: Portfolio characteristics at the end of the Financial Year
Portfolio characteristics at the end of the Financial Year (1) Portfolio characteristics Number of investments 72 Largest / avg. size(£mm) 65.0 / 23.8 Avg. maturity / avg. life (yrs.) 5.6 / 4.5 Portfolio modified duration 2.3 Average equity cushion 34% Construction risk 8.1% Defensive sectors (2) 47
Slide 12: ESG
ESG 11
Slide 13: ESG is integral to our investment framework
ESG is integral to our investment framework Incorporating the UN Principles for Responsible Investment in our investment processes and decisions ESG implementation Climate Change Pledge 1. We support the Paris climate goals to limit the global average SEQI Climate Pledge • Negative screening / exclu
Slide 14: ESG milestones and scoring criteria
ESG milestones 2020 ESG milestones ESG scoring • All the identified “non-compliant” legacy • The Fund has developed a ESG scoring framework Alignment with community goals Examples of scoring criteria investments in the portfolio have which blends environmental, social and governance matured or been
Slide 15: The Board and the Investment Adviser
The Board and the Investment Adviser 14
Slide 16: Management and the Board
Management and the Board An experienced investment advisory team A strong, independent board Randall Sandstrom Managed $6 billion notional in global debt funds Non-Executive Director of 3i Infrastructure CEO and CIO Robert Jennings, Board of Directors, LCF Rothschild and MD of Structured Former Non
Slide 17: Sequoia Investment Management Company, the Investment Adviser
Sequoia Investment Management Company, the Investment Adviser Sequoia profile (www.seqimco.com) Sequoia value added Change over the financial year Seasoned infrastructure, asset management and Assets under management grew from Founded 2009 capital markets professionals $2.15 billion to $2.88 billion
Slide 18: Case Studies
EQUOIA INVESTMENT Case Studies 7
Slide 19: Case Studies: Landfill Gas / Residential Solar / Agricultural Infra
Case Studies: Landfill Gas / Residential Solar / Agricultural Infra Infinis is a leading UK renewable energy platform with 472MW of installed capacity and the UK’s largest generator of low carbon power from captured methane. The operating platform currently spans 150 sites and four business division
Slide 20: 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 21: 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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