Infrastructure investment companies (IICs) and renewable energy infrastructure funds (REIFs) have moved into a far more demanding phase. After a period when capital flowed readily into the sector, sentiment has cooled and discounts to net asset value (NAV) have widened across a number of trusts. For investors, the disconnect between share prices and underlying asset values has become one of the defining themes.
In this episode of Hardman Talks, Nigel Hawkins, Infrastructure and Renewables analyst at Hardman & Co, joins Larissa Adams to examine what is driving this shift. The discussion explores how market conditions, investor expectations and company-level dynamics have combined to reshape performance across the space. It also considers how boards and managers are responding, and how the balance between income, growth and capital management is evolving in the current environment.
With equity markets more selective and confidence no longer assured, the sector appears to be at an important juncture. Are today’s discounts a sign of deeper structural issues, or do they represent a potential opportunity for patient investors? Nigel shares his perspective on what may influence the next phase and the factors that could determine whether the discount gap narrows – or persists.
Watch the full interview for a timely and thoughtful assessment of where IICs and REIFs stand today.
