In a continuation of recent positive momentum, the Fund recorded a 2.12% gain in June. The Fund has delivered a return of 10.49% over the first six months of 2026 (C Accumulation GBP). A significant majority of underlying exposures contributed positively to performance and while it is reasonable to argue that much of the listed infrastructure sector in the UK deserves to be rated more firmly relative to net asset values, a stream of corporate activity in June helped to refocus investor attention.

Notably (and highlighted in our prior commentary) on 1^st June Bluefield Solar Income announced it had received an offer from Drax Group to acquire the entire issued share capital of Bluefield Solar for 92.574p per share in cash. Delivering a 16.5% total return, Bluefield was the individual greatest contributor to performance during the period as the shares trended close to the takeover price. Tritax BigBox REIT, with a 7.1% total return, was the next best contributor as its data centre development ambitions took a step forward. The company received planning permission for its inaugural Manor Farm data centre, which is targeting a yield on cost of 9.3%. Swiftly following this news, the logistics REIT announced it had entered a development management agreement (“DMA”) with Tritax Management to deliver a further data centre in Chelmsford with a higher target YoC of 10-11%.

Meanwhile, Residential Secure Income REIT (+5.3% in June) announced it had struck a deal to sell its retirement portfolio (the bulk of its asset base) to Social Housing REIT (now renamed Living REIT) for £108m via a combination of cash and shares – albeit the latter component is based on the acquirer’s NAV per share rather than prevailing share price, which sits at a discount. Heads of Terms had already been agreed for the sale of Residential Secure Income’s shared ownership portfolio (to an undisclosed buyer) for £13.5m. GCP Asset Backed Income announced it had exchanged contracts on the sale of a portfolio of loans secured against operational care home projects in the UK at a valuation that is “in line” with the portfolio’s most recent mark. Proceeds of at least £41.4m represent more than a third of the company’s remaining value after a successful wind-up process to date, which has seen >£220m/>60% of issued share capital already returned to shareholders. The company intends to announce a fourth compulsory redemption imminently. The Renewables Infrastructure Group announced the disposal of a 17.5% stake in the Beatrice offshore wind farm for ~£155m – a 4% discount to the December 2025 valuation. TRIG’s board noted the sale represents “meaningful progress against the 12-month £400m capital realisation target set at the Capital Markets Seminar in May 2026”. The sale will reduce borrowing by £375m (RCF plus asset-specific project-level debt).

Finally, shares in Gresham House Energy Storage rallied 7.2% following the publication of an open letter from a large shareholder, PrimeStone Capital, calling for the sale of the business. While highly complementary of the management team on its operational delivery, the letter notes the muted market reaction to these achievements and the very large discount to NAV at which the shares trade. We sympathise with the sentiments expressed by PrimeStone. If public markets will not value such entities appropriately, private market opportunities could prove the best route to realise the inherent value. Despite the improvement in the share price, Gresham House Energy Storage still traded at a 22% discount to the latest 114.56p NAV (which is anticipated to increase once the June valuation is declared as three pipeline projects are expected to move into construction phase and will be factored in on a DCF basis) while last year Harmony Energy Income, a peer BESS player in the UK, was acquired by Foresight Group at prevailing NAV.

SDCL Energy Efficiency Income was the notable detractor from performance in the period. The shares lost 20.8% in value (costing approximately 40 bps of performance owing to a modest allocation) as the board announced it would seek a managed wind-down of the vehicle to realise value for shareholders. The company will suspend dividends with immediate effect with a view to reducing debt in the first instance. The company has become capital constrained, not least given the inability to raise capital while trading at a deep discount to NAV, at a time when underlying investment platforms require access to capital. Initial contact with potential asset acquirors has commenced and while the process may take some time, the Investment Manager believes the initial market reaction to the news is likely to correct given the disconnect between the prevailing share price and the value of the asset base – even if asset sales are accepted/achieved at a discount to carrying value.

Second quarter distributions

Provisional income distributions relating to the second quarter of 2026, payable in July 2026, amounted to 1.3889p per C Income GBP unit and 1.4077p per I Income GBP unit. On this basis, second quarter distributions are approximately 6% higher when compared with the same period in 2025. The Investment Manager anticipates a lower third quarter distribution when compared with that same period in 2025 owing to changes in the composition of the portfolio as a result of M&A across the portfolio and adjustments to the dividend policies of some underlying portfolio companies. As at 30^th June, the Fund’s trailing 12-month yield was 6.37% for the C Income GBP units.