Ecofin Global Utilities Trust Delivers 15% NAV Return and Announces Dividend Increase in Annual Results

Performance versus the sector: competitive and consistent

For the 12 months to 30 September 2025, NAV total return of 15.0% compared with 15.4% for the S&P Global Infrastructure Index and 11.7% for the MSCI World Utilities Index (all sterling). The share price total return of 16.6% reflected some discount movement and the impact of buybacks.

Since launch in 2016, annualised returns are 10.7% for NAV and 12.3% for the share price, comfortably ahead of both sector comparators at 7.8% per annum. That track record matters: it suggests the manager’s stock selection and use of the closed-ended structure have added value over a full cycle.

What drove returns in 2025

• Regions: Europe ex-UK (+21.0%) and Asia Pacific ex-Japan (+18.2%) led. North America was positive (+9.3%), while the UK lagged (+1.5%).
• Sub-sectors: transportation infrastructure (+19.7%) and integrated utilities (+19.1%) were stand-outs, with notable contributions from Ferrovial (+35.1%), Vinci (+21.3%) and Vistra (+64.2%).
• Gearing: actively managed borrowings contributed about 1.8% to shareholder returns. Gearing peaked above 17% in July and finished the year at 10.2%.

The manager highlights a powerful industry theme: long-term power purchase agreements signed by “hyperscalers” (the largest data centre operators) with nuclear and hydro generators. Examples cited include Constellation’s deal with Meta, Talen’s contract with Amazon, and Brookfield Renewable’s framework with Google for up to 3GW. Vistra announced a 20-year agreement for 1.2GW at Comanche Peak, expected to be 8-10% free cash flow accretive. These deals lock in premium pricing for years, supporting earnings visibility for baseload producers.

Meanwhile, high-profile power outages in Iberia underscored the reality of tight generation capacity in Europe as electricity demand rises. The manager argues listed infrastructure valuations remain attractive versus history and private market marks.

Portfolio activity and positioning

Earlier in the year the trust reduced North American exposure and rotated into undervalued Europe, which helped returns. Profits were taken in E.ON, Vistra, RWE, Vinci, Enel, National Grid, Snam, Iren and Terna; a small EDP stake was sold. Toppings-up included Xcel, Brookfield Renewable Partners, Public Services Enterprise, Drax, Dominion and Exelon, and the trust participated in Iberdrola’s €5 billion raise.

New positions were initiated in Pennon – a regulated UK water operator on a substantial valuation discount with an approximately 6% dividend yield – and Eversource, which targets at least 5% EPS growth with a circa 5% dividend yield and trades on 13x earnings, well below its history and peers.

Costs and operational updates

The ongoing charges ratio improved to 1.29% from 1.39%. Frostrow Capital LLP was appointed as AIFM, company secretary, administrator and investor relations provider on 1 July 2025, with Montfort Communications engaged for PR. The trust has launched a redesigned website for shareholders at eglplc.com and offers email alerts at this link.

The balance sheet and income at a glance

• Income: investment income rose to £12.0 million; revenue return per share increased to 7.45p.
• Dividends: £9.035 million paid in the year; proposed fourth interim of 2.125p relates to 93,949,624 shares on the 31 October 2025 record date.
• Borrowing: prime brokerage borrowings were £25.5 million at year end.

Risks and what could go wrong

• Discount risk: despite buybacks, the discount averaged around 10.8% and ended at 11.3%.
• Dividend cover: revenue covered 88.4% of the 2025 dividend. The special reserve provides flexibility, but sustained cover improvement would be reassuring.
• Market and regulatory: utilities and infrastructure face regulatory reviews, political shifts and FX movements; gearing will amplify moves in both directions.

Outlook: constructive, with tangible catalysts

The board and manager see listed infrastructure as still undervalued, with earnings supported by regulated and contracted revenues. Structural drivers – electrification, grid upgrades, data centre demand and the clean energy transition – remain intact. Since the year end, to 9 December 2026, NAV per share and the share price have risen by 3.7% and 12.0% respectively.

My take: this is an attractive mix of dependable cash flows and visible growth, wrapped in an 11.3% discount. The higher dividend and ongoing buybacks are helpful. If sector re-rating continues and buybacks persist, the discount has room to narrow. Keep an eye on dividend cover, the pace of income growth, and how gearing is deployed if markets wobble.

Diary date and how to engage

The AGM is scheduled for Thursday, 5 March 2026 at 12:30 p.m. at Barber-Surgeons’ Hall, London EC2Y 5BL, with a presentation by the portfolio manager and a recording to be uploaded afterwards. Shareholders can explore documents and updates at eglplc.com and register for email alerts here.