Why Invest?

A focus on regular, stable income with opportunity for NAV upside  

SEQI has provided investors with eight years of quarterly income, consistently meeting its dividend targets from stable portfolio cashflows.

The annual dividend per share has grown from 5p in 2015 to 6.875p per share in 2023, cash-covered with an average annual dividend growth of over 4%. SEQI also offers the potential for gradual NAV growth, as an era of higher interest rates may allow for re-investment, at higher average yields, of loan redemptions and surplus cash flows after dividends.

94.37

NAV per share

6.875 p

Target annual dividend per share

9.08 %

Dividend yield

£ 1.5 bn

Total net assets

All data correct as of 31 October 2024.

Infrastructure credit market resilience 

SEQI’s infrastructure credit investments are designed to provide exposure to strong underlying long-term cash flows.  These are typically non-cyclical, in infrastructure in industries that provide either essential public services or, on the commercial side, that are in evolving segments such as energy transition, digitalisation or healthcare. Real asset-backing may also be a material part of the investment thesis for many infrastructure credits.  Together, these elements can allow infrastructure credit to offer superior returns with resilient performance, distinct from the broader corporate credit market.

Access to investment expertise

SEQI benefits from access to a specialist investment manager wholly focused on infrastructure credit which is often private or illiquid and not accessible by a wide pool of investors. Sequoia Investment Management Company was founded in London in 2010 and has a highly experienced international team of over 20 dedicated executives, all of whom work on the SEQI strategy, drawing on their backgrounds in infrastructure credit investment, risk management, institutional portfolio management, capital markets and ESG. SIMCo’s experience in providing solutions for borrowers consistent with attractive returns for investors is exemplified by the maintenance of the SEQI fund’s historic average annual loss rate (over 200 investments in 8 years since IPO) at a level comfortably lower than the equivalent loss rate for the broader market for rated corporate loans at an equivalent credit rating level of BB and B.

Portfolio diversification

SEQI invests in a wide pool of infrastructure credits, diversified across 8 broad sectors and over 25 distinct sub-sectors, 12 mature jurisdictions and a range of credit structures (floating and fixed rate loans; senior, subordinated and holding company loans).  With an average loan life of typically around 4 years, the actively managed portfolio rapidly recycles capital, providing access to new evolving themes, as well as time-based diversification as newer loans are set at prevailing rates, helping defray interest rate risk. This diversification helps provide a compelling risk-adjusted return which has now been proven over eight years of investment across a range of market conditions.

Transparency and liquidity

As the largest credit fund listed on the London Stock Exchange by portfolio size and market value, SEQI provides investors with leading transparency with monthly reporting of NAV and portfolio performance. Shareholders also benefit from ongoing liquidity, with the SEQI stock supported by a wide range of institutional, intermediary and individual investors in the UK and internationally. SEQI, a member of the FTSE-250 index, is covered regularly by leading market research analysts.

Sustainable mission

SEQI, classified as an EU SFDR article 8 fund, seeks to take a lead in evaluating the performance of, and seek continuous improvement in, its portfolio, across the dimensions of environment, society and governance.  The Manager works closely with its portfolio borrowers and equity partners to identify and measure improvements in sustainability, which the Manager supports with its dedicated staffing as well as incorporating external third-party ESG analysis on a continuous basis across the SEQI portfolio. These initiatives have resulted in SIMCo winning, on the back of its performance at SEQI, the Capital Finance International 2022 global award for “Best ESG Infrastructure Investment Strategy”.

Infrastructure credit market resilience 

SEQI’s infrastructure credit investments are designed to provide exposure to strong underlying long-term cash flows.  These are typically non-cyclical, in infrastructure in industries that provide either essential public services or, on the commercial side, that are in evolving segments such as energy transition, digitalisation or healthcare. Real asset-backing may also be a material part of the investment thesis for many infrastructure credits.  Together, these elements can allow infrastructure credit to offer superior returns with resilient performance, distinct from the broader corporate credit market.

Access to investment expertise

SEQI benefits from access to a specialist investment manager wholly focused on infrastructure credit which is often private or illiquid and not accessible by a wide pool of investors. Sequoia Investment Management Company was founded in London in 2010 and has a highly experienced international team of over 20 dedicated executives, all of whom work on the SEQI strategy, drawing on their backgrounds in infrastructure credit investment, risk management, institutional portfolio management, capital markets and ESG. SIMCo’s experience in providing solutions for borrowers consistent with attractive returns for investors is exemplified by the maintenance of the SEQI fund’s historic average annual loss rate (over 200 investments in 8 years since IPO) at below 0.5%. This represents less than half the level of annualised losses seen in broader rated corporate loans at an equivalent credit rating level of BB and B.

Portfolio diversification

SEQI invests in a wide pool of infrastructure credits, diversified across 8 broad sectors and over 25 distinct sub-sectors, 12 mature jurisdictions and a range of credit structures (floating and fixed rate loans; senior, subordinated and holding company loans).  With an average loan life of typically around 4 years, the actively managed portfolio rapidly recycles capital, providing access to new evolving themes, as well as time-based diversification as newer loans are set at prevailing rates, helping defray interest rate risk. This diversification helps provide a compelling risk-adjusted return which has now been proven over eight years of investment across a range of market conditions. 

Transparency and liquidity

As the largest credit fund listed on the London Stock Exchange by portfolio size and market value, SEQI provides investors with leading transparency with monthly reporting of NAV and portfolio performance. Shareholders also benefit from ongoing liquidity, with the SEQI stock supported by a wide range of institutional, intermediary and individual investors in the UK and internationally. SEQI, a member of the FTSE-250 index, is covered regularly by leading market research analysts. 

Sustainable mission

SEQI, classified as an EU SFDR article 8 fund, seeks to take a lead in evaluating the performance of, and seek continuous improvement in, its portfolio, across the dimensions of environment, society and governance.  The Investment Adviser works closely with its portfolio borrowers and equity partners to identify and measure improvements in sustainability, which the Investment Adviser supports with its dedicated staffing as well as incorporating external third-party ESG analysis on a continuous basis across the SEQI portfolio. These initiatives have resulted in SIMCo winning, on the back of its performance on SEQI, the Capital Finance International 2022 global award for “Best ESG Infrastructure Investment Strategy”.