The Fund recorded a modest positive return of 0.21% in September (C Accumulation GBP), which masks a relatively unsettled period for the strategy. Having trended lower in the first half of the month, performance rebounded sharply – marking a new high on 22nd September – before trailing off again. The swings largely mirror the inverse of movements in UK borrowing costs and as we move closer to the Autumn Budget, yields are likely to exhibit continued volatility. 
For the third quarter overall, the Fund delivered a 4.09% return (C Accumulation GBP). 

Renewable energy generators including core positions in Greencoat UK Wind (+4.8% in September) and The Renewables Infrastructure Group (+3.9%) continued to lead in terms of positive contributions. 

The greatest individual performance came from Kier Group (+8.6%) as recent positive momentum in the shares was compounded by a strong FY results announcement (financial year end June), which included revenue growth of 7.5%, a stable operating margin, and an 8% increase in the overall dividend distribution for the year. A robust order book, expanding pipeline, and recent framework awards provided the basis for management to guide towards the top end of prior earnings expectations for FY 2027. Looking forward, a strategic focus on the core Infrastructure and Construction business (the company will no longer pursue property developments) is expected to lead to margin expansion and accelerate earnings growth in the medium term.

Although a significant majority of underlying holdings detracted from performance, share price declines were generally quite modest. Primary Health Properties (-4.0% in September) and Tritax BigBox (-7.2%) provided the only meaningful headwinds on an individual basis. The specialist REITs held within the Fund are typically highly sensitive to moves in yields as capitalisation rates dictate market values ascribed to their assets.

Positions in Cordiant Digital Infrastructure, GCP Infrastructure, Greencoat UK Wind and The Renewables Infrastructure Group were reduced at the margins, primarily to maintain prudent allocations within the portfolio following relative outperformance. Capital was deployed into Renew Holdings as share price volatility provided an opportunity to acquire stock below the Fund’s average book cost on the name. The Fund has demonstrated price discipline and patience while building its position in Renew, recognising the stock’s tendency for volatility within a reasonably wide trading range. 

The Fund retains a useful level of cash available for deployment (approx. 4% by weight at 30/09/26) and is well placed to seize opportunities as they may arise in the build up to the Autumn Budget scheduled for 28th October.

Third quarter distributions

Income distributions relating to the third quarter of 2026, payable in October 2026, amounted to 1.3271p per C Income GBP unit and 1.3462p per I Income GBP unit. As anticipated (and previously communicated), third quarter distributions are lower when compared with the same period in 2025. However, overall distributions declared for the first nine months of 2026 are broadly flat year-on-year. As at 30th September, the Fund’s trailing 12-month yield was 6.27% for the C Income GBP units.