The Fund recorded a gain of 2.02% in October (C Accumulation GBP). A reduction in mid-to-longer dated reference yields provided a helpful tailwind for the strategy, with softer-than-anticipated inflation data for September providing the impetus for the UK 10-year gilt yield to hit new lows year-to-date and for the 30-year gilt yield to retrace to levels last seen in March.

Positive contributors outnumbered detractors by an approximate ratio of 2:1 with notable strength among the traditional equities held within the portfolio. Pennon Group and SSE (a relatively recent addition to the portfolio) each generated returns in excess of 10% during October, while National Grid and Vodafone (the Fund’s best individual performer in 2025) gained 6.8% and 6.9%, respectively. Aside from a pre-close update ahead of its half-year results, in which National Grid stated the company was performing in line with expectations, news flow around these companies was otherwise limited.

Other strong contributors included Primary Health Properties and SDCL Efficiency. SDCL issued an Operational Update Statement for the six-month period to 30^th September, which highlighted mixed performance and outlooks across the underlying platform investments but stated overall performance has been “broadly in line with expectations”. The company has made further progress in making disposals to pay down its RCF, which remains a key priority. The company’s 9.5% return during October did not begin to materialise until mid-month (while the update was published on 1^st October). The most significant detractors included Bluefield Solar, Greencoat UK Wind and HICL although in each case losses were modest.

Additional points to note include Sequoia Economic Infrastructure’s full recovery of its Bulb Energy loan, which was announced as part of a solid September NAV update. Problem loans now account for just 0.5% of NAV compared to 2% at the start of the year. The company’s weighted average loan life remains short at approximately three years. Exposure to the US has been reduced over the past six months, while currency exposure is effectively fully hedged. Meanwhile, logistics REIT Tritax BigBox announced the acquisition of an approximate £1bn portfolio of big box and urban logistics assets from Blackstone, to be funded through a combination of debt and equity (Blackstone will take an approximate 9% stake in Tritax BigBox). The deal, which is of scale, is in quick succession to the company’s ultimately unsuccessful bid for Warehouse REIT (lost to Blackstone), which owns similar assets.

During the period, positions in GCP Infrastructure Investments, HICL, International Public Partnerships and Sequoia Economic Infrastructure were reduced modestly. A more material reduction was made in National Grid in order to maintain a prudent exposure following a protracted period of strong relative outperformance. A small top up was made to Bluefield Solar, capturing the company’s October dividend.

As the Autumn budget approaches, it would be reasonable to anticipate some broader market volatility. The UK-listed infrastructure sector will be particularly sensitive to resultant shifts in reference yields. In this regard, should the Chancellor strike a fiscal balance that appeases bond markets, it could prove a positive catalyst for share prices.