Positive performance momentum reversed in March as geopolitical events in the Middle East rocked capital markets and sent government bond yields sharply higher. Against a volatile backdrop, the Fund recorded a -5.02% total return (C Accumulation GBP), which compared relatively favourably with domestic equities.

Most portfolio holdings lost value during the month. Specialist REITs Primary Health Properties and Tritax BigBox were the greatest detractors from performance, while listed equities including National Grid and Pennon Group also sold off sharply (regular readers will appreciate that equity risk has been reduced into persistent strength over recent months). However, negative performance was broad-based and reflected an immediate reaction to geopolitical events and rising bond yields. There has been material value recovery across the portfolio in the early stages of April. Tighter energy markets and the prospect of higher electricity prices provided a tailwind for some renewable energy generators. Bluefield Solar and Greencoat UK Wind posted the only meaningful positive contributions during the month.

The Fund continued to build up recently established positions in Kier Group and Renew Holdings, and an opportunistic addition was made to the long-standing holding in Target Healthcare REIT. Positions in Foresight Environmental Assets, HICL Infrastructure, NextEnergy Solar and Sequoia Economic Infrastructure were reduced at the margins.

First quarter distributions

Income distributions for the first quarter of 2026, payable in April 2026, amounted to 1.4303p per C Income GBP unit and 1.4488p per I Income GBP unit. First quarter distributions are approximately 11% higher when compared with the same period in 2025. As at 31st March, the Fund’s trailing 12-month yield was 6.69 % for the C Income GBP units.