Sequoia economic infrastructure said Monday that its net asset value was up 0.13% from May to 102.41 pence per share.
Infrastructure specialist FTSE 250 said interest income was up 0.48% and currency movements increased net asset value by 0.01 pence per share, while asset valuations themselves were 0.36 pence lower compared to the previous month.
The decline in assets was mainly due to several sizeable US energy positions being written off and a “significant” decline in the price of one of their least liquid positions based on a small secondary trade in the bond towards the end of May.
“The investment advisor, investment manager and PwC, the independent assessor, have continued their detailed analysis of the impact of Covid-19 on the company’s portfolio,” the Sequoia board of directors said in its statement.
“The Investment Adviser anticipates the previously identified surge in asset valuations where Covid-19 has negatively impacted performance to continue.
“This trend is expected to continue as economies continue to recover and lockdowns continue to ease around the world.”
Sequoia said it had £ 84.7 million in cash on May 28 and had drawn £ 83.6 million on its £ 280 million revolving credit facility.
It also had undrawn commitments on existing investments totaling £ 72.6 million, while the invested portfolio consisted of 63 private debt and 11 infrastructure bonds across eight sectors and 30 subsectors.
The company said it had an annualized return to maturity of 9.0% and a cash return of 5.6%, with a weighted average portfolio life of approximately 4.3 years.
Private debt investments made up 94% of the total portfolio and 55% of the portfolio consisted of floating rate assets.
The weighted average purchase price of Sequoia’s facilities was 98.9% of face value and the facilities prior to the operation represented 11.1% of total assets.
Sequoia Economic Infrastructure said its invested portfolio remained “geographically diversified” with 48% in the United States, 20% in the UK, 26% in Europe and 6% in Australia and New Zealand.
Currently, the company has not invested in Portugal or Italy, but selectively in opportunities in Spain.
“The company’s pipeline of investments in economic infrastructure bonds remains strong and diversified across sectors, subsectors and jurisdictions,” said the board of directors.
“At month end, approximately 99% of the Company’s Net Asset Value was either sterling or sterling hedged assets.
“The company has sufficient resources to cover margin calls in its hedging book.”
At 0814 BST, the shares of the Sequoia Economic Infrastructure Income Fund rose 0.73% to 110.2 pence.