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SEQI - Sequoia Infrastructure fund

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
richfool
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SEQI - Sequoia Infrastructure fund

#283376

Postby richfool » February 10th, 2020, 8:34 am

I have held the above for about 9 months, for the dividend yield c5.4%, the diversification and because I believe it will be somewhat defensive in the event of market falls. It invests in infrastructure debt as opposed to equity.

I have however noticed that its capital value is going nowhere and and past performance looks similar. I am therefore pondering whether to offload it for something with more growth prospects.

Any particular thoughts on this?

tjh290633
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Re: SEQI - Sequoia Infrastructure fund

#283385

Postby tjh290633 » February 10th, 2020, 9:15 am

I'm surprised that you were expecting growth from it. If interest rates rise, I would expect it to fall, but I could be wrong.

TJH

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Re: SEQI - Sequoia Infrastructure fund

#283414

Postby toofast2live » February 10th, 2020, 11:43 am

richfool wrote:I have held the above for about 9 months, for the dividend yield c5.4%, the diversification and because I believe it will be somewhat defensive in the event of market falls. It invests in infrastructure debt as opposed to equity.
So continue to hold it

I have however noticed that its capital value is going nowhere and and past performance looks similar. I am therefore pondering whether to offload it for something with more growth prospects.
you want diversification. It will stall/decline when equities are rising

Any particular thoughts on this?


Yes, keep it. It provides diversification and a juicy dividend

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Re: SEQI - Sequoia Infrastructure fund

#283475

Postby PrefInvestor » February 10th, 2020, 5:09 pm

Hi richfool, I too have held SEQI for just over 12 months in all, bought some at 111.8 last Feb and some more in their open offer in June for 108. With dividends I make the total return so far as 7.78% which is quite acceptable to me.

With these debt investments the share price never does much, its the dividends that add up. Take NCYF as another example, I bought two tranches both at close to 62p back in Dec 2017 & Jan 2018, so with the current SP of 59p thats a LOSS in price terms of close to 5% right ?. But with the 7+% dividend my total return performance is a GAIN of 10.75%.

I'm not sure if you monitor the total return on your investments ? as doing a pure price comparison makes these investments look bad. See charts produced using Hargreaves Fund comparison tool (which allows you to compare total return or price)

NCYF Total Return Comparison

Image

NCYF Price Comparison

Image

Somewhat different eh ?.

Personally Im not too worried about interest rates going up, if anything I think they are more likely to get cut again TBH what with brexit and the likely economic impact. Just my opinion you understand.

ATB

Pref
Last edited by PrefInvestor on February 10th, 2020, 5:22 pm, edited 1 time in total.

Bagger46

Re: SEQI - Sequoia Infrastructure fund

#283477

Postby Bagger46 » February 10th, 2020, 5:20 pm

https://www.londonstockexchange.com/exc ... 17738.html

The above might be of interest to your discussion.

Bagger

PS I don't hold. But a few income investors among my close friends have done fine in the past few years out of Debt ITs and some smaller REITs, used as diversifiers. Steadily increasing divis, plus some capital gain, unlike many a so called income stalwart I can think of.

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Re: SEQI - Sequoia Infrastructure fund

#283481

Postby PrefInvestor » February 10th, 2020, 5:40 pm

Yes, another fund raising exercise with a placing and an option for existing shareholders to obtain shares at 112p on a 2 for 15 basis by the look of it. Also to be a facility to apply for further shares if you want and a placing (to new parties) by the look of it. Similar sort of deal as when I bought more at 108p I suspect, there were no transactions costs on that occasion.

As a result the share price is likely to dip closer to 112p now ?.

Prospectus and details available on the SEQI website, or via the links in baggers post.

ATB

Pref

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Re: SEQI - Sequoia Infrastructure fund

#283784

Postby monabri » February 12th, 2020, 1:24 pm

Sequoia Economic Infrastructure Income Fund Ltd (SEQI)

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Re: SEQI - Sequoia Infrastructure fund

#284956

Postby richfool » February 17th, 2020, 3:14 pm

Apologies for the mis-spelling - Sequoia - and the apparent lack of response to your various replies. I have been out in the Far East for a few weeks (and dodging the Coronavirus), but am now back home in self imposed isolation. I find it tedious trying to compile comprehensive posts on my smartphone, hence my apparent silence. So firstly, thank you all for your replies and input.

PrefInvestor wrote:Yes, another fund raising exercise with a placing and an option for existing shareholders to obtain shares at 112p on a 2 for 15 basis by the look of it. Also to be a facility to apply for further shares if you want and a placing (to new parties) by the look of it. Similar sort of deal as when I bought more at 108p I suspect, there were no transactions costs on that occasion.

As a result the share price is likely to dip closer to 112p now ?.

Prospectus and details available on the SEQI website, or via the links in baggers post.

Thanks for the information on the offer. I had in fact sold my (full) holding shorty after submitting my post. However, upon further reflection and seeing the further fall in the SP, I then bought a lesser quantity at a reduced price. Since then I have received the offer notification (with a calculation based on my original full holding) and have applied to take that up, plus a few more, at the 112p offer price.

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Re: SEQI - Sequoia Infrastructure fund

#284985

Postby monabri » February 17th, 2020, 5:08 pm

I hold SEQI..in my frozen SVS trading account - thus I can only stand on the byline.

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Re: SEQI - Sequoia Infrastructure fund

#285298

Postby MartynC27 » February 18th, 2020, 11:01 pm

I have received This message from my platform (Best Invest) :-

Holding: Sequoia Economic Infrastructure Income Fund Limited
Event Type: Open Offer
Sequoia Economic Infrastructure Income Fund Limited has announced the terms of an Open Offer.
As a holder of Sequoia Economic Infrastructure Income Fund Limited ordinary shares, you have received 2 Sequoia Economic Infrastructure Income Fund Limited Open Offer share for every 15 Sequoia Economic Infrastructure Income Fund Limited ordinary shares held.
For each Sequoia Economic Infrastructure Income Fund Limited Open Offer share exercised, you will receive 1 New Sequoia Economic Infrastructure Income Fund Limited ordinary share.
Subscription Price: GBP1.12
Subscription Date: 26th February 2020
Excess applications are permitted, but are limited to a maximum of 5 times the basic entitlements as at the record date. Excess applications above this maximum amount, but may be subject to scaling back.
Summary Details
Option 1) Exercise Open Offer shares at a price of GBP1.12 per share.
Option 2) Exercise Open Offer shares at a price of GBP1.12 per share and apply for excess shares. Please advise the number of excess shares you wish to exercise.
Option 3) Take No Action (DEFAULT, NO ELECTION REQUIRED)
Next Steps
In order to take up the Open Offer you must contact us with your investment decision by 5.00pm on 24th February 2020 (“the response deadline”).


I have not seen an Open Offer before.
I assume Options 1 & 2 will require payment of a sum of cash into the Platform ?
If any one of the offers are exercised then is this normally classified as a 'BUY' by the platform with the standard fee ?

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Re: SEQI - Sequoia Infrastructure fund

#285348

Postby tjh290633 » February 19th, 2020, 10:40 am

MartynC27 wrote:I have not seen an Open Offer before.
I assume Options 1 & 2 will require payment of a sum of cash into the Platform ?
If any one of the offers are exercised then is this normally classified as a 'BUY' by the platform with the standard fee?


If you do not have enough cash in the account, then yes, you will need to top it up before the date on which paymentm is required. It;s a while since I took up an open offer but, on checking my records, I see that neither stamp duty nor brokerage were involved. I just paid for the shares at the quoted price of 210p for Segro shares on 27 July 2009. I suspect that T2 came into play, so another entry shows 31 July 2009.

TJH

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Re: SEQI - Sequoia Infrastructure fund

#285365

Postby richfool » February 19th, 2020, 12:03 pm

tjh290633 wrote:
MartynC27 wrote:I have not seen an Open Offer before.
I assume Options 1 & 2 will require payment of a sum of cash into the Platform ?
If any one of the offers are exercised then is this normally classified as a 'BUY' by the platform with the standard fee?


If you do not have enough cash in the account, then yes, you will need to top it up before the date on which paymentm is required. It;s a while since I took up an open offer but, on checking my records, I see that neither stamp duty nor brokerage were involved. I just paid for the shares at the quoted price of 210p for Segro shares on 27 July 2009. I suspect that T2 came into play, so another entry shows 31 July 2009.

TJH

In the offer letter re SEQI, my broker (X-O) said they required written instructions and cleared funds in my trading account by 21st Feb, and yes no trading fees are incurred.

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Re: SEQI - Sequoia Infrastructure fund

#285522

Postby MartynC27 » February 19th, 2020, 9:52 pm

MartynC27 wrote:I have received This message from my platform (Best Invest) :-

[u]Holding: Sequoia Economic Infrastructure Income Fund Limited[/u]
Event Type: Open Offer
Sequoia Economic Infrastructure Income Fund Limited has announced the terms of an Open Offer.
As a holder of Sequoia Economic Infrastructure Income Fund Limited ordinary shares, you have received 2 Sequoia Economic Infrastructure Income Fund Limited Open Offer share for every 15 Sequoia Economic Infrastructure Income Fund Limited ordinary shares held.
For each Sequoia Economic Infrastructure Income Fund Limited Open Offer share exercised, you will receive 1 New Sequoia Economic Infrastructure Income Fund Limited ordinary share.
Subscription Price: GBP1.12
Subscription Date: 26th February 2020
Excess applications are permitted, but are limited to a maximum of 5 times the basic entitlements as at the record date. Excess applications above this maximum amount, but may be subject to scaling back.
Summary Details
Option 1) Exercise Open Offer shares at a price of GBP1.12 per share.
Option 2) Exercise Open Offer shares at a price of GBP1.12 per share and apply for excess shares. Please advise the number of excess shares you wish to exercise.
Option 3) Take No Action (DEFAULT, NO ELECTION REQUIRED)
Next Steps
In order to take up the Open Offer you must contact us with your investment decision by 5.00pm on 24th February 2020 (“the response deadline”).



So for option 1) I will be applying to buy 2 Shares for every 15 shares I currently hold at the price of £1.12 each and these have already allocated if I wish to buy them?
and for option 2) I can apply for the allocated shares in option 1) plus excess shares up to 5 times the amount allocated in option 1) ?

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Re: SEQI - Sequoia Infrastructure fund

#285539

Postby tjh290633 » February 19th, 2020, 11:10 pm

MartynC27 wrote:So for option 1) I will be applying to buy 2 Shares for every 15 shares I currently hold at the price of £1.12 each and these have already allocated if I wish to buy them?
and for option 2) I can apply for the allocated shares in option 1) plus excess shares up to 5 times the amount allocated in option 1) ?


Yes, but doing nothing is Option 3.

TJH

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Re: SEQI - Sequoia Infrastructure fund

#285681

Postby Shelford » February 20th, 2020, 2:44 pm

Quite how SEQI could get its estimates of future cash flows from a bunch of oversize compost bins beggars belief. We are not trying to land on Mars here. For those wanting to invest in such technology, perhaps JLEN might be a safer bet. For Fixed income enthusiasts, NCYS might be worth a look.

I intend to hold on to SEQI. They've changed the management team, and compost bins are only part of the portfolio. And I don't like tinkering.

Shelford

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Re: SEQI - Sequoia Infrastructure fund

#285766

Postby MartynC27 » February 20th, 2020, 10:02 pm

Shelford wrote: For Fixed income enthusiasts, NCYS might be worth a look.


Assume you meant NCYF - CQS New City High Yield Fund Ltd ?

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Re: SEQI - Sequoia Infrastructure fund

#286499

Postby richfool » February 24th, 2020, 10:27 pm

My broker today took the funds for the open offer allocation and the additional/excess allocation that I had applied for, - no scaling back.

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Re: SEQI - Sequoia Infrastructure fund

#339700

Postby richfool » September 11th, 2020, 3:14 pm

Shelford wrote:Quite how SEQI could get its estimates of future cash flows from a bunch of oversize compost bins beggars belief. We are not trying to land on Mars here. For those wanting to invest in such technology, perhaps JLEN might be a safer bet. For Fixed income enthusiasts, NCYS might be worth a look.

I intend to hold on to SEQI. They've changed the management team, and compost bins are only part of the portfolio. And I don't like tinkering.

Shelford

I note (Infrastructure sector trust) SEQI has come back up to 105.60p (since March). Yield: 5.92%. Premium: c 10%

My understanding is that it holds debt rather than equity, so it can't be holding "compost bins". It lends to others to hold them.

I continue to hold this, which based on current yield is useful for income, though not sure that I see much upside to the SP.

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Re: SEQI - Sequoia Infrastructure fund

#339809

Postby Parky » September 12th, 2020, 8:17 am

As an alternative I am looking at BBGI Sicav SA (BBGI). Their stated objective is -"BBGI aims to provide investors with a secure and predictable long-term cash flow at the same time as actively managing the investment portfolio to maximise the capital value over the longer term. The investment policy is to invest in equity, subordinated debt and/or similar interests issued in respect of infrastructure projects that have been developed predominantly under the PPP/PFI or similar procurement models. The Company principally invests in projects that are operational and that have completed construction." Looks safe to me (now that there is no longer a risk of a Corbyn UK government), although it is spread over several countries anyway. Yield is 4% plus. One thing I don't understand though is the premium of 30% to NAV. It is either the way PPP/PFI is valued, or a willingness of investors to pay a high premium for safe income. Apart from a short blip, BBGI was hardly affected by the pandemic (so far).

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Re: SEQI - Sequoia Infrastructure fund

#340874

Postby richfool » September 17th, 2020, 11:25 am

I just came across this on Citywire (dated 20th August 2020) - Numis Analysts have made SEQI a core buy, - with related comments:
Sequoia Economic Infrastructure Income, a £1.8bn Guernsey closed-end fund investing in infrastructure debt, has been made a core buy by Numis analysts.

Although the private loan portfolio suffered in March, the investment company was fortunate in raising £300m from shareholders in February, just before the coronavirus market crash.

Lovett-Turner said this gave Sequoia the firepower to not just buy assets cheaply, but also to raise the credit quality of its investments - an important defence as a recession loomed - whilst not sacrificing returns.

Sequoia’s largest sector exposures are transport, technology, media and telecom, and power – both carbon-based and renewable.

The analyst cautioned that three quarters of SEQI’s borrowers were deemed to be ‘moderately underperforming’, although well within their loan agreements. In addition, 5% of the portfolio was invested in assets hit by low oil prices and lockdown restrictions in the energy industry. There was also some exposure to troubled aircraft leases.

Nevertheless, he said: ‘We rate the management team highly and believe that a 5.8% yield is attractive.’

https://citywire.co.uk/wealth-manager/n ... 390630#i=2


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