The Fund recorded a modest loss of 1.13% in September (C Accumulation GBP). Whilst more underlying portfolio companies contributed positively to performance than detracted by count, poor performance from a handful of UK-listed renewable energy generators including Bluefield Solar, NextEnergy Solar, Foresight Solar and Foresight Environmental Assets shifted the overall balance of returns at Fund level. The performance of this cohort was largely a continuation in trend from August although it should be noted that the Fund’s largest exposures towards renewable energy infrastructure – Greencoat UK Wind and The Renewables Infrastructure Group – delivered modest positive performance during the period. Core social infrastructure exposures such as International Public Partnerships and HICL contributed well, while 3i Infrastructure recorded the strongest individual performance and positive contribution.

Several Trading Updates were published by portfolio companies. Water utility Pennon Group stated it was on track to meet its 7% RORE target in FY 2026 (March year-end) with a strong return to profitability reflected in an approximate 60% year-on-year increase in EBITDA (net of deferred revenue). Pennon aims to increase its regulated capital value by more than 70% over the course of the current regulatory period (2025 – 2029). By FY 2027, Pennon’s initiative to construct four major energy projects in Scotland is expected to be complete and “Pennon Power’s” renewable energy portfolio will generate the equivalent of 40% of the Group’s total consumption (excluding SES Water).

3i Infrastructure provided a positive update with the HY 2026 (March year-end) portfolio return “likely to be ahead of expectations set at the start of the year”. Strength has been driven by performance at TCR, an airport ground handling equipment business, which “outperformed expectations set in March 2025, driven by higher rental margins and cost efficiencies. It has continued to expand its global footprint and the strategic focus on electrifying the fleet has been a catalyst for further leasing penetration. Following several years of outperformance, diversification of customers and equipment types, development of the integrated airport solutions business line and the recent growth into the US market, TCR is now a leading global platform with a sustainable, well-defined growth outlook, attracting increasing interest from larger private infrastructure funds”. The market has speculated that the company is exploring a possible exit from its investment in TCR, which could prove meaningfully accretive to 3i Infrastructure’s NAV based on suggested valuations for the business.

Cordiant Digital Infrastructure reported a strong start to FY 2026 (March year-end). First quarter revenue of £85.3m and EBITDA of £41.3m represent year-on-year growth of 9.0% and 9.6%, respectively (constant currency basis) driven by positive performance at Emitel, CRA and Speed Fibre, as well as the addition of Datacentre United to the portfolio. Specific drivers included contract wins, cost controls, and the benefits of contractual and other price escalators. We note Cordiant’s management continue to buy meaningful amounts of Cordiant stock.

During the period, positions in Foresight Environmental Assets, GCP Asset Backed Income, GCP Infrastructure Investments, HICL Infrastructure, International Public Partnerships and Sequoia Economic Infrastructure were reduced at the margins in order to maintain prudent allocations. The recently established position in SSE was added to and represented a 1.84% allocation within the Fund at month end. The SSE equity exposure is in addition to an approximate 1% allocation to an 8.375% coupon SSE-issued bond, which has been held in the Fund since March 2023 and matures in November 2028.

Third quarter distribution announced

Income distributions for the third quarter of 2025, payable in October 2025, amounted to 1.3110p per C Income GBP unit and 1.3312p per I Income GBP unit. Third quarter income distributions are up marginally when compared with the comparable period in 2024. As at 30^th September, the Fund’s trailing 12-month yield was 6.09% and 6.19% for the C Income GBP and I Income GBP units, respectively.