The Fund recorded a gain of 4.02% in April (C Accumulation GBP) against a volatile backdrop for capital markets, as the outlook for the global economy was jolted by the U.S. President’s intention to impose wide-reaching and punitive tariffs on its trading partners. Over the course of the month, interest rate probabilities discounted the prospect of more aggressive rate cuts in the UK during 2025, providing a tailwind for the UK-listed infrastructure sector.

A significant majority of underlying portfolio companies contributed positively to performance. The Fund’s exposures to water utilities and National Grid Plc were notably strong performers as traditionally defensive equities attracted investors. SDCL Energy Efficiency and Sequoia Economic Infrastructure were among the few detractors, likely moving against the general trend owing to association, with each company having some underlying exposure to US assets.

Shareholders of Care REIT supported the company’s takeover by CareTrust REIT for 108p/share in cash. The Fund had a 2.95% weighting in Care REIT as at 30^th April and the transaction is expected to complete in May. The proposed acquisition of BBGI Global Infrastructure progressed further as shareholders approved the necessary resolutions to facilitate the deal at the company’s General Meeting.  

Tritax BigBox REIT published an encouraging operating update in which the company reported it had disposed of approximately half of the non-strategic assets taken on as part of the acquisition of UK Commercial Property REIT in 2024. UKCM’s non-strategic assets now represent less than 4% of Tritax BigBox’s GAV and management confirmed the full disposal programme remains on track for completion within the original 24-month timeframe that markets were guided towards. The company has made good progress towards capturing the reversionary potential for UKCM’s logistics portfolio, having achieved a +5.6% increase in rental income so far.

The Fund was largely unchanged during the period, with no trading of note occurring. The anticipated completion of the announced takeovers of BBGI Global Infrastructure, Care REIT and Renewi Plc should release significant levels of capital for redeployment in coming weeks and months.