| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 59.56 | -25 |
| Intrinsic value (DCF) | 33.08 | -58 |
| Graham-Dodd Method | 0.12 | -100 |
| Graham Formula | n/a |
Sequoia Economic Infrastructure Income Fund Limited (SEQI.L) is a London-listed investment fund specializing in private loans and bonds tied to economic infrastructure projects. Operating within the Financial Services sector, the fund targets stable, low-risk jurisdictions to generate equity-like returns with the security of debt instruments. Its diversified portfolio spans multiple industries, including transportation, utilities, and social infrastructure, providing investors with steady income streams and capital preservation. With a market capitalization of approximately £1.19 billion, SEQI.L is a key player in the infrastructure debt market, appealing to income-focused investors seeking exposure to essential, long-term assets. The fund's disciplined investment approach and focus on high-quality borrowers position it as a resilient option in volatile markets. Its commitment to a 6.875p dividend per share underscores its income-generating strategy.
Sequoia Economic Infrastructure Income Fund offers an attractive proposition for income-seeking investors, combining the stability of infrastructure debt with equity-like returns. The fund's low beta (0.52) suggests lower volatility relative to broader markets, making it a defensive play. With no debt on its balance sheet and strong operating cash flow (£115.98 million), SEQI.L demonstrates financial resilience. However, its reliance on private loans and bonds exposes it to credit risk, particularly in economic downturns. The fund’s geographic focus on stable jurisdictions mitigates some risk, but investors should monitor interest rate trends, as rising rates could pressure borrowing costs for infrastructure projects. The current dividend yield, supported by robust net income (£110.42 million), is a key draw, but sustainability depends on continued loan performance.
Sequoia Economic Infrastructure Income Fund differentiates itself through a niche focus on private infrastructure debt, a segment less saturated than public infrastructure equities or bonds. Its competitive edge lies in accessing non-bank lending opportunities, often securing higher yields than traditional fixed-income products. The fund’s rigorous due diligence process and emphasis on low-risk jurisdictions enhance credit quality, reducing default risk. However, its private debt focus limits liquidity compared to publicly traded infrastructure securities. Competitors often blend equity and debt exposures, whereas SEQI.L’s pure-debt approach appeals to conservative investors but may lag in bull markets. The fund’s scale (£1.19 billion AUM) provides bargaining power with borrowers, though larger asset managers boast broader diversification. Its lack of leverage (zero debt) is a strength but may constrain returns versus leveraged peers. SEQI.L’s performance hinges on maintaining a robust pipeline of infrastructure loans amid rising competition from private credit funds.