NAV and Investment Update

pence per share

31 July NAV

90.86

Interest income, net of expenses

0.54

Asset valuations, net of FX movements

0.10

Subscriptions / share buybacks

0.00

31 August NAV

91.50

Performance Highlights

Cumulative Total Returns

1Y

3Y

5Y

NAV

6.45%

22.59%

27.67%

Share Price

18.41%

32.92%

11.71%

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Risk-free rates increased across SEQI's key investment regions during August. The U.S. 5-year Treasury yield rose by approximately 0.04% to 4.49%, the UK 5-year Gilt yield by approximately 0.05% to 4.64%, and the German 5-year government bond yield by approximately 0.12% to 3.03%.

·

Inflationary pressures were most pronounced in the Eurozone, where headline inflation increased from 2.9% in July to 3.3% in August, driven primarily by higher energy prices. UK CPI also rose from 2.6% in June to 2.9% in July, although softer labour-market conditions partly moderated the upward pressure on rate expectations.

·

Central banks continue to balance persistent inflation against signs of weaker economic growth. The Bank of England maintained Bank Rate at 3.75% from July, while markets moved towards pricing a further ECB rate increase in September. The outlook remains sensitive to energy prices, geopolitical developments and the persistence of underlying inflation.

·

In a higher interest-rate environment, SEQI benefits from its dynamic interest-rate positioning, with 56.5% of the portfolio invested in fixed-rate instruments as at 31 August. 

·

Credit spreads remain tight relative to historical averages. Any resulting market dislocation or spread widening may create opportunities for SEQI to originate new loans at attractive risk-adjusted returns, supported by its disciplined credit approach and flexible investment strategy.

·

As at 31 August, SEQI had drawn £120.5 million under its £300 million revolving credit facility and held cash of £91.6 million, inclusive of interest income, principally in preparation for a new loan investment completing shortly after the month end. Net undrawn investment commitments stood at £89.3 million.

·

An increase in the loan to Exeltium S.A.S. a French electricity procurement vehicle supplying approximately 25 industrial clients under long-term take-or-pay contracts, of €7.7 million. The junior secured notes held by SEQI pay a fixed coupon of 9.4% and mature in December 2031.

·

A full repayment of £38.4 million was received in respect of Roseton, a dual-fuel power generation facility in New York State.

·

A full and final deferred consideration of $10.0 million was received as part of the sale to a third party of the Jetpeaks loan.

·

SEQI's invested portfolio as at 31 August consisted of 47 private debt investments and 2 infrastructure bonds, diversified across 8 sectors and 24 sub-sectors.

·

Private debt investments which allow SEQI to capture illiquidity yield premiums, represented 94.1% of the total portfolio.

·

The weighted average loan life was 3.0 years.

·

SEQI's portfolio remained geographically diversified, with 42.5% of investments located in the U.S., 24.1% in the U.K. and 33.4% in Europe.

·

SEQI continues to work towards maximising recovery from two non-performing loans in the portfolio (representing 0.7% of NAV). There are no additional updates on non-performing loans during August.

·

SEQI did not repurchase any ordinary shares during August 2026 as normal investor buying led to a narrowing of the discount to NAV.

·

SEQI first started buying back shares in July 2022 and since then to the end of August 2026, has spent £242.1 million buying back 300,905,720 ordinary shares.

·

The Board applies a dynamic approach to share buybacks which takes into account available portfolio liquidity, the relative trading discount to NAV per share and other relevant factors.

·

The share buyback programme will continue to remain in place and delivers a positive contribution to NAV per share.

·

SEQI is the UK's largest listed debt fund, investing in economic infrastructure private loans and bonds across a range of industries in stable, low-risk jurisdictions, creating equity-like returns with the protections of debt.

·

SEQI's loans are high quality and have robust covenants. It lends to companies that have a track record of consistent cash flow generation and which are backed by physical assets. This enables SEQI to benefit from exposure to an asset class with robust fundamentals as well as the opportunity for attractive returns.

·

SEQI seeks to provide investors with regular, sustained, long-term income with opportunity to benefit from NAV upside from its well diversified portfolio. Investments are typically non-cyclical, in industries that provide essential public services or in evolving sectors such as energy transition, digitalisation or healthcare.

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Since its launch in 2015, SEQI has provided investors with 11 years of quarterly income, consistently meeting its annual dividend per share target, which has grown from 5.0 pence in 2015 to 6.875 pence per share.

·

SEQI has a comprehensive sustainability framework, combining i) negative screening, ii) thematic investing (positive screening), both of which again received independent limited assurance this year, and iii) a proprietary ESG scoring methodology, which has been redesigned this year and now comprises a new ESG Risk Score and a new Externality Score. This new dual-scoring framework represents a significant evolution from the previous single-score approach and is designed to provide more structured, balanced, value-focused decision-useful insights.

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SEQI is advised by SIMCo, a long-standing investment advisory team with extensive infrastructure debt origination, analysis, structuring and investment execution experience.

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SEQI's monthly updates are available here: Seqifund/investors/monthly-updates

Investment Adviser 

Sequoia Investment Management Company Limited

Steve Cook

Dolf Kohnhorst

Randall Sandstrom

Anurag Gupta

+44 (0)20 7079 0480

[email protected]

Joint Corporate Brokers and Financial Advisers

Jefferies International Limited

Gaudi Le Roux

Harry Randall

+44 (0)20 7029 8000

J.P. Morgan Cazenove

Rupert Budge

William Simmonds

+44 (0)20 7742 4000

Public Relations

Sodali

Madeline Gordon-Foxwell

+44 (0)20 7260 2700

[email protected]

Alternative Investment Fund Manager (AIFM)

FundRock Management Company (Guernsey) Limited

Ben Snook

Chris Hickling

[email protected]

Administrator / Company Secretary

Apex Fund and Corporate Services (Guernsey) Limited

Aoife Bennett

+44 (0)20 7592 0419 [email protected]