Sequoia Economic infrastructure said on Monday that its net asset value rose 0.13% from May to 102.41 pence a share.
The FTSE 250 infrastructure investor said interest income rose 0.48% and exchange rate movements lifted net asset value by 0.01p per share, while asset valuations themselves were 0.36p lower month-on-month.
The decline in assets was mainly due to the devaluation of several sizable US power positions and a “significant” price decline in one of the least liquid positions, which was based on a small secondary trade in the bond in late May.
“The Investment Adviser, Investment Manager and PwC, the independent rating agency, have continued their detailed analysis of the impact of Covid-19 on the Company’s portfolio,” Sequoia’s board of directors said in its statement.
“The Investment Adviser expects the previously noted increase in valuations of assets where Covid-19 has impacted performance to continue.
“This trend is expected to continue as economies continue to recover and lockdowns continue to be eased around the world.”
Sequoia said it had £84.7m in cash as of May 28 and had drawn £83.6m on its £280m revolving credit facility.
It also had undrawn commitments on existing investments totaling £72.6m, while its invested portfolio consisted of 63 private debt investments and 11 infrastructure bonds across eight sectors and 30 sub-sectors.
The company said it has an annualized yield-to-maturity of 9.0% and a cash yield of 5.6%, with a weighted average portfolio life of around 4.3 years.
Private debt investments accounted for 94% of the total portfolio and 55% of the portfolio consisted of floating rate assets.
The weighted average purchase price of Sequoia’s investments was 98.9% of face value, and pre-commissioning investments accounted for 11.1% of total assets.
Sequoia Economic Infrastructure said its invested portfolio has remained “geographically diverse,” with 48% located in the United States, 20% in the United Kingdom, 26% in Europe, and 6% in Australia and New Zealand.
Currently, the company said it does not invest in Portugal or Italy, but has selectively invested in opportunities in Spain.
“The Company’s pipeline of debt investments in economic infrastructure remains strong and diversified by sector, sub-sector and jurisdiction,” the board said.
“At month end approximately 99% of the company’s net asset value was either sterling assets or sterling hedged.
“The Company has sufficient resources to cover margin calls in its hedging book.”
At 0814 BST, shares in the Sequoia Economic Infrastructure Income Fund were up 0.73% to 110.2p.
