Premier Global Infrastructure Trust – Evolution, not revolution

Premier Global Infrastructure Trust (PGIT), formerly Premier Energy & Water, has announced a change of investment emphasis within its portfolio. PGIT’s investment objectives remain unchanged (high income and long-term capital growth – see below) but fuller use is now being made of the existing authority to invest in non-utility infrastructure – areas such as ports and roads. A more concentrated portfolio is also to be revised into three distinct areas: income equities, growth equities and yieldcos (approximately one-third to each). The managers describe this process as “evolution, not revolution”. They believe that the changes have enhanced PGIT’s return prospects while simultaneously providing no increase in risk.

Geared global utilities and infrastructure exposure

PGIT invests in equity and equity-related securities of companies operating in the utilities and infrastructure sectors, with the twin objectives of achieving high income and long-term capital growth from its portfolio. Since the change of management and stock selection in June 2012, the portfolio has had greater emphasis on emerging markets; smaller companies; and special situations; and lower weightings to traditional, developed market, utility companies.

The name change reflects the shift in emphasis

On 1 November 2017, PGIT announced that it had changed its name from Premier Energy and Water Trust, to Premier Global Infrastructure Trust, to reflect a change in investment emphasis that now gives a greater prominence to infrastructure investments. It should be noted that the trust still focuses primarily on energy and water, which will continue to comprise at least 75% of gross assets (at the time of investment).

PIGT : Premier Global Infrastructure Trust – Evolution, not revolution