Sequoia Infrastructure NAV falls as bond yields hit valuations
Sequoia Economic Infrastructure Income Fund Ltd on Monday reported a fall in net asset value in July as higher bond yields weighed on investment valuations.
The Guernsey, Channel Islands-domiciled fund, which is run by Sequoia Investment Management Co Ltd, said NAV per share fell by 1.1% to 92.58 pence as of July 31, from 93.62p one month earlier.
Sequoia Economic Infrastructure said the decline in asset valuations "resulted from a combination of the material increase in risk-free rates during July and adjustments to investment valuations". Most of the decline in investment valuations was attributable to further adjustments relating to UK healthcare and complex-care provider Active Care Group.
The company said market sentiment weakened during July as tensions in the Middle East escalated and shipping through the Strait of Hormuz was disrupted. Higher oil prices renewed concerns about energy supplies and inflation.
Sequoia said its weighted average portfolio yield-to-worst was 9.9% at July 31, while portfolio pull-to-par was 4.7 pence per share. Its 12-month share price total return was 17%.
The company's annual dividend target was unchanged at 6.875 pence per share, representing a dividend yield of 7.96% based on its closing share price of 86.40p at July 31.
During July, Sequoia advanced a further £5 million to Active Care Group, taking its total exposure to £92.6 million, or 6.8% of NAV. It also provided additional loans of USD5.0 million to US residential solar company Sunrun and EUR2.8 million to Irish data-centre-linked power asset Grange Backup Power, while drawing EUR1.6 million for Portuguese High-Speed Rail, taking its total commitment to EUR24.0 million.
Sequoia said it continues to work towards maximising recovery from two non-performing loans, which represented 0.7% of NAV.
Shares in Sequoia Economic Infrastructure were down 1.7% at 84.41 pence on Monday morning in London.
Copyright 2026 Alliance News Ltd. All Rights Reserved.