The Fund recorded a modest, positive total return of 0.55% in July (C Accumulation GBP) with a majority of underlying portfolio companies contributing positively to performance. GCP Infrastructure Investments generated the highest positive return (+6.52%) and was the single greatest contributor during the period.

Primary Health Properties provided a solid HY Trading Update with net rental income +3.1% year-on-year to £78.6m. The update comes at an important time for the company as it seeks to gain support for a merger with peer, Assura Group. PHP’s CEO Mark Davies stated, “The improving rental growth outlook and a stabilisation of our property yields at 5.25% signal that we've moved through a key inflexion point in the property cycle with a very encouraging outlook ahead”. The Investment Manager to the Fund views a combination of PHP and Assura as being desirable, allowing continued exposure to a high-quality combined platform of assets operating in a crucial segment of UK social infrastructure and one that should stand to benefit from the government’s recently published 10 Year Health Plan.

Gresham House Energy Storage delivered more progress in relation to its 3-year plan by announcing long-term floor agreements on 789MW of projects (74% of the company’s portfolio) with two investment grade counterparties. The floor-pricing agreements come into force once existing tolling agreements with a separate entity (Octopus Energy) expire from 2027 onwards. The agreements help to provide contracted revenue streams for Gresham House (whilst retaining some ability to participate in any upside) and will be critical in enabling the company to re-establish dividend distributions.

Greencoat UK Wind reported poor HY results with generation 14% below budget and a NAV total return of -1.8% that was impacted by lower forecast power prices at the near and long ends of the curve. In line with this, DESNZ’s Energy Trends have showed that wind resource for the period between March and May 2025 was the lowest for this period since DESNZ’s data series commenced in 2001. It is also interesting to note that Greencoat’s power curve consultant assumes a 1.65x increase in electricity demand by 2050, materially lower than all demand scenarios modelled by the National Energy System Operator, which range from 1.9-2.7x. Post period-end, Greencoat agreed the partial disposal of three wind farms with a total value of £181m, all in line with the 30^th June NAV. Proceeds will be used to reduce gearing and support the ongoing buyback programme. However, with regards to the latter, the rationale for buying back shares over-and-above deploying capital on new investments has become less clear.

International Public Partnerships announced it has committed £250m (c.3% of project equity) alongside commitments from the UK government and other private investors into the Sizewell C nuclear project. The company will fund the investment, which will amount to c.£50m per annum over the next five years, principally using cash proceeds from the disposal of lower-returning assets (we note the recent disposal of a UK education PPP portfolio). Sizewell C is the first nuclear project to be procured under the RAB model, where investors will receive revenues through the construction phase (which commences in Q4 2025) in exchange for upfront capital commitments. The project is expected to support 10,000 jobs once operational. The project will represent c.10% of International Public Partnership’s portfolio once fully invested and the company highlights the expected return over the medium to longer-term is above the return being achieved by its ongoing share buyback programme. The company further highlights that the project’s “…design, construction, operations and financing adopt mature and proven approaches from nuclear power in the UK and globally”. This includes a high proportion of the design being replicated from another nuclear site under construction; Hinkley Point C, and the benefit of an established supply chain.

A new position in SSE was added to the portfolio during the period, representing in part a reallocation of some of the capital “released” following the recently completed takeovers of Care REIT and BBGI Global Infrastructure. SSE provides exposure to a portfolio of UK-based power infrastructure spanning generation assets (wind, solar, hydroelectric, gas), flexible generation (BESS), electricity transmission & distribution networks (5,000km of transmission infrastructure), as well as exposure to digital infrastructure assets via a stake in a core fibre network joint venture. Electricity networks (transmission & distribution) and renewables form the core business units and account for 87% of group operating profit combined. A material proportion of revenues are contracted. SSE’s inclusion has immediately contributed to the Fund’s income generation as the company went ex its FY 2025 dividend in July. SSE reiterated its commitment to increasing its dividend distributions in the range of 5-10% year-on-year to FY 2027, which should be supported by expected earnings growth. To this point, the company has reiterated guidance of 13-16% CAGR in earnings per share over the five-year period ending FY 2027.

Positions in Sequoia Economic Infrastructure and Foresight Solar Income were trimmed during the period. Sales occurred after each company was trading ex-dividend.