Stock Analysis & Valuation Abrdn Global Infrastructure Income Fund (ASGI)

• Previous Close: $22.94
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	88.19	284
Intrinsic value (DCF)		n/a
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Abrdn Global Infrastructure Income Fund (ASGI) is a non-diversified, closed-end management investment company focused on delivering total returns with an emphasis on current income. Headquartered in Philadelphia, PA, ASGI invests in a diversified portfolio of public and private infrastructure assets, including utilities, transportation, and energy projects. Operating in the Financial Services sector under Asset Management - Income, the fund targets stable, long-term cash flows from essential infrastructure assets, appealing to income-seeking investors. With a market cap of approximately $554 million, ASGI provides exposure to global infrastructure, a sector known for its inflation resilience and low correlation to broader equity markets. The fund's strategy combines yield generation with capital appreciation potential, making it a compelling option for investors looking to diversify into defensive, income-producing assets.

Investment Summary

ASGI presents an attractive investment opportunity for income-focused investors, offering a high dividend yield of $2.42 per share (approximately 6.1% based on current pricing). The fund's infrastructure focus provides inflation-hedging benefits and stable cash flows, supported by a diversified portfolio of essential assets. However, risks include interest rate sensitivity, as rising rates could pressure valuations, and potential liquidity constraints due to its closed-end structure. The fund's lack of leverage (zero total debt) is a positive, but its relatively small cash position ($58K) may limit flexibility. With a beta of 0.86, ASGI exhibits lower volatility than the broader market, aligning with its defensive positioning. Investors should weigh its income appeal against sector-specific risks like regulatory changes and project delays.

Competitive Analysis

ASGI competes in the niche infrastructure income fund space, differentiating itself through a hybrid approach that blends public and private infrastructure investments. Its competitive advantage lies in abrdn's global infrastructure expertise and the fund's ability to access direct, high-yield private deals—a edge over pure-play public infrastructure ETFs. However, its closed-end structure may limit liquidity compared to open-end peers. The fund's 6%+ yield is competitive but must be evaluated against credit risk and fee structures. ASGI's small size ($554M AUM) could restrict scalability versus larger infrastructure funds like Brookfield Infrastructure Partners (BIP). Its zero-debt policy reduces financial risk but may also cap returns in a low-rate environment. Performance hinges on abrdn's asset selection, particularly in navigating regulatory risks in utilities and energy transitions in transport assets.

Major Competitors

• Brookfield Infrastructure Partners (BIP): BIP is a global leader with $25B+ market cap, offering diversified infrastructure exposure and higher scale. Strengths include ownership of hard-to-replicate assets (e.g., toll roads, data centers) and active management. However, its higher leverage (∼60% debt-to-capital) increases risk versus ASGI's unlevered balance sheet. BIP's 4.5% yield is lower but backed by stronger cash flow diversification.
• Cohen & Steers Infrastructure Fund (UTF): UTF is a closed-end peer with $2.5B AUM, focusing on utilities (∼60% portfolio). Its larger size provides better liquidity, but heavy utility exposure lacks ASGI's private asset variety. UTF's 8.5% yield is higher but reflects greater leverage (22% debt). ASGI's global mandate offers broader geographic diversification compared to UTF's North America tilt.
• iShares U.S. Infrastructure ETF (IFRA): This ETF provides low-cost (0.30% fee) exposure to U.S. infrastructure equities. While more liquid and transparent than ASGI, it lacks private assets and has a lower yield (∼3%). ASGI's active management and income focus appeal to yield seekers, but IFRA suits passive investors preferring tradability.