Brett Owens, Chief Investment Strategist
Updated: October 14, 2026

Yeah, we’re here for the dividends. But isn’t it nice when we buy a stock and it goes up, like, right away?

And it happens for us. We are contrarians! We buy payers when they are out of favor because that maximizes our yield (more dividends per dollar!) and minimizes our downside (everyone has already sold!).

Sometimes this works and we buy, say, a 6% dividend stock that quickly gains 10%. The hated setup gave us a quick paper buck. Cool—but now what do we do?

Well, we need to understand that a dividend acts like an anchor in both directions. This stock attracted income investors because it used to pay, say, 5%, but its price dropped, that yield became 6%, and people started buying because, “hey, Great Stock pays us more!”

But then, a 10% rise can move its yield closer to that previous 5% mark. So, our “next move” depends upon our timeframe and return goals. If we are here truly just for the divvie, then we hold. We locked in a 6% yield when we bought, which means this price movement is just noise. (True, potentially loud noise, but clamor to be ignored nonetheless.)

That said, we have to be OK with our gains retracing. And maybe we’re not. Perhaps we don’t mind having a shorter timeframe to lock in that 10%. Or even 17%, in an example I’ll show you now. This was a stock I recommended back in March. Since then, in aggregate, it’s gone absolutely nowhere. But we made 20% off of it anyway!

The landlord I’m talking about was Broadstone Net Lease (BNL), which I recommended to my Dividend Swing Trader readers earlier this year.

Most investors, even income-focused ones, don’t know the name because BNL rarely makes financial headlines. It quietly operates in the background with hundreds of single-tenant properties. These are mostly industrial buildings and a little bit of retail. BNL leases them out on long-term contracts and in net lease format, which means the tenants cover the property taxes, insurance and upkeep.

What does BNL do? It collects the rent and pays out most of it to shareholders in the form of dividends. Not a bad business.

We bought it low because BNL had been undervalued for some time. The company went public in late 2020, just in time for the Federal Reserve’s 2022 rate hikes. Not great for landlords like BNL who borrow money to grow, and therefore compete with the bond market for income investors. When rates jumped in 2022, investors dumped the whole REIT group, good landlords and bad. BNL slid from $26 to $14. By March of this year, it had clawed back to around $19, which I still considered cheap.

We bought, because BNL’s operating numbers told a steadier story. Occupancy was above 99%, about as good as it gets (duh!). AFFO, an earnings measure that accounts for non-cash items, grew 4% in 2025. Management had just raised its quarterly dividend again to 29.25 cents. Plus, the current leases had plenty of room to run, an average of 9.6 years, and they included built-in rent increases of about 2.1% per year.

BNL is growing cash flow by building new properties for current and future tenants, such as Amazon, Sprouts Farmers Market and Academy Sports. These companies have all signed long-term leases with BNL before construction.

We bought a little above $19 for a yield of 6%, and then the shares began to reward us. Over the next four months, BNL climbed to $22.79 per share, and along the way it paid two quarterly dividends totaling 58.5 cents per share, rewarding us with about 3% on our purchase price.

I told DST readers that Wall Street had caught on, and we sold for a 20.7% total return in about four months. Here’s what that looked like:

(Note: The chart above is price only. Our trade generated a $3.43 price gain plus $0.585 in dividends, a 20.7% total return.)

You see that most of our return came from price growth and not the dividend. And that is my point!

Last week, BNL traded at $18.28, below where we bought it in March. If you bought it then and held on, you’re down about 1%, even after collecting three dividends. At DST we banked 20.7%.

Why? Because the stock rallied to the upper end of its likely trading range. My DST system flashed a “take profits!” signal, so that’s what we did. There was no need to grit our teeth and endure a pullback. We took the money and ran!

In Dividend Swing Trader, we look for shorter term total-return opportunities in the same types of dividend-paying stocks and funds that you and I know and love. In these situations, we’re looking to collect our payouts and pursue price gains in the months ahead. That’s why I begged my editors to launch DST.

BNL shows what we’re looking for: a dividend worth collecting and enough price upside to make a shorter holding period worthwhile.

Now (as Tax-Loss Selling Starts Early)

Brett Owens, Chief Investment Strategist
Updated: October 13, 2026

This year, Christmas (for dividend investors!) is set to arrive two months early.

Our gift?

A chance to grab our favorite high yielders—closed-end funds (CEFs) paying 10% and more—on an early “year-end” sale.

How cheap are we talking here? How about 90 cents on the dollar? In some cases less.

We’ve got an early start to the year-end tax-loss selling season to thank for this opportunity.

Forget Year-End: The Best Dividend Deals Are Right Now

Our play starts with the fact that CEFs are a small market, with only around 365 out there. That means they’re mainly held by individual investors, since most CEFs aren’t big enough to move the needle for the big guys.

And when I say these funds are mainly held by everyday folks, I mean it. Individuals make up around 90% of CEF owners, according to one source.

You and I both know the mainstream crowd is highly likely to overreact to the headlines. That’s our “in,” because I expect these folks to get a little uncomfortable in the weeks ahead. As they do, they’ll sell—and we’ll be there to scoop up the bargains!

Here’s what I see driving that selling pressure:

• Midterms are coming, cranking up the anxiety level with each passing day.
• October is historically the most volatile month for stocks.
• Soaring bond yields are scaring investors into selling anything that looks like a bond (hint!).

This is already happening: According to the Q3 CEF review from First Trust, the average CEF discount to net asset value (NAV, or the value of its underlying portfolio) widened to 8.4% at the end of Q3 from 6% at the end of June.

Taxable-bond CEFs (hint! hint!) saw their discounts widen further, from 6.6% to 9.98%.

That’s where those early tax-loss sales come in, because despite all the worry these days, the go-to stock ETF, the SPDR S&P 500 ETF Trust (SPY), has gained 15% this year.

That’s going to prompt some nervous folks to take money off the table. As they do, they’ll offset those gains by booking losses. Bond CEFs, which have taken a beating, are prime candidates to be tossed over the side.

The result? Those already wide 9.98% average discounts could get even bigger, pushing these funds’ yields higher still.

Here’s the twist: When these folks clear the IRS’s “wash-sale rule” (which disallows the loss if you buy the same fund within 30 days before or after you sell it), they’ll likely re-buy those same high-yielding bond CEFs.

It’ll pay to be in before that happens. Then you could either sell later this year or early next, when a nice gain may be on the table—or simply hang on for the income.

Here are two CEFs to target, each kicking out dividends near 11%.

(Early) Tax-Loss Bargain #1: A 10.8%-Payer With a 10% “Red Tag Deal”

The BlackRock Credit Allocation Income Trust (BTZ) delivers a nice blend of stability and value, with 45% of the portfolio in investment-grade bonds. The rest is split among high-yield corporates, foreign debt, agency mortgages and bank loans.

The fund’s “goldilocks” effective duration (4.87 years) is another plus. It positions BTZ to gain if rates fall, while limiting losses if rates go higher than expected.

Which brings us to leverage—a tool many CEFs use. Here, management has taken a pragmatic approach, borrowing against 27% of the portfolio. That, like BTZ’s duration, is modest enough to boost income without layering on too much risk if rates keep rising.

The yield? 10.8%, and that payout has held up well over the last decade, with a small cut in 2017 more than offset by a hike in 2019. It’s been “no drama” since.

Source: Income Calendar

The discount plays a role in the payout: If you divide the yearly dividend by the fund’s NAV, not its 10%-discounted market price, you get 9.7%. That’s what management needs to earn to cover the dividend, and while NAV is down slightly this year as rates have climbed, its total NAV return was 10.1% in 2025.

But this year’s NAV weakness looks more than priced in: Right now, BTZ’s 10% markdown is much wider than its five-year average of 6.6% and double the 5% at which the fund traded at the start of the year.

That makes this one a smart play on “early” tax-loss selling. If the discount narrows later this year or early next, we’ll have a nice return to take off the table. And if rates fall, NAV returns would likely rise. That would bolster dividend coverage—and could shift BTZ from a short-term discount play to something more.

 (Early) Tax-Loss Bargain #2: A 10.9% Payer With a “Blown Out” Discount

The PGIM High Yield Bond Fund (ISD) provides the clearest evidence yet that our tax-loss selling party is kicking off early. This 10.9%-payer (complete with a monthly dividend) trades at an 11.5% discount.

Compare that to the average over the last year (just 2.2%!).

One chart clearly shows us that this deal is all about investors panic-selling ISD in their rush away from bonds:

ISD’s Portfolio Is Fine. Its Market Price Has Tanked

Above we see that the fund’s total return NAV (or its portfolio performance) has been flat, while its return on the public markets (in orange) has plunged. Investors are dumping a portfolio that’s doing just fine!

The result is an 11.5% discount that’s done nothing but grow wider over the last few months, again suggesting the crowd is looking to book its losses here.

ISD’s Discount Widens Heading Into Late 2026

The fund’s portfolio also complements BTZ, with 90% rated BB or below. That focus on non-investment-grade paper is great for us, because it’s where the biggest yields are.

We’ve got history on our side, too. Since its launch in 2012, ISD has posted a 102% return on its market price, even with this pullback. Compare that to around 84% for the State Street SPDR Bloomberg High-Yield Bond ETF (JNK), a proxy for US high-yield bonds.

And on a NAV basis (a better measure of management’s skill), it’s done better. See the purple line below:

ISD’s Portfolio Crushes Its Benchmark

ISD also uses zero leverage. Plus, its effective duration is 3.85 years, again positioning it to benefit from falling rates but not suffer too much if rates head higher.

My take? Tax losses or no, investors are moving off this well-run fund at exactly the wrong time. Taking the other side of that argument—and that sweet 10.9% dividend—is the better play.

My #1 “Christmas in October” Buy: 12% Dividends. 94 Cents on the Dollar

And there are even bigger dividends than these two on sale now.

Like my favorite bond CEF. Check out its resume:

• It yields 12%, paid monthly.
• It usually trades at a premium to NAV. Today you can buy it for 94 cents on the dollar.
• It’s run by a legendary CEF firm—a company I call “the Amazon of CEFs.”
• Its manager is a former Morningstar Fixed Income Manager of the Year.

Yet investors are blindly tossing this smartly run income play in their rush away from bonds. That’s our cue to buy, before the tax-loss selling crowd finishes selling and starts buying back in.

Current income to date £10,896

Current fcast for the calendar year 2026 £13,244, although a couple of dividends may be received in January 2027.

Cash for re-investment £831.00

The SNOWBALL has a comparator share VWRP.

Using the 4% rule that would currently provide income of £6,890.00

The 2027 target for the SNOWBALL is the 2031 figure of £12,064, which would mean the SNOWBALL would be well ahead of the plan.

9.9% Yield, 13% Off. This 100-Year-Old Fund Is Too Cheap by Michael Foster, Investment Strategist Let’s break down this cloud of pessimism hanging over the economy. As far as I can tell, it’s mainly coming from two sources:The bond market.The labor market.Concerns around both are overblown, and that’s been a plus for us at my CEF Insider service. It’s pushed out the discounts to net asset value (NAV) on these funds, setting up some nice buying opportunities over the last few months. It’s increased the dividend yields on some of these funds, too. In some cases near double digits. General American Investors (GAM), one of the more popular equity CEFs, tells the tale here. As I write this the fund’s market price trades at a 13.1% discount to its portfolio value (or its NAV, in other words). That’s cheaper than this 9.9%-yielder was just one year ago. That doesn’t make any sense, both in terms of the composition of its portfolio (which we’ll talk more about in a moment) and the state of the US economy as a whole. Which brings us back to our two “anchors” on investor sentiment. Let’s start with bonds. Even though yields have spiked, defaults are low. According to recent numbers from Fitch, they’re at about 2.8% on a trailing-12-month basis, within the rating agency’s forecast of 2.5% to 3%. But the media, negative-biased as it is, focuses on weaker corporate borrowers, which naturally raises investor fears. In short: While bond yields are up, credit stress isn’t. And corporate America’s results? They’re more than fine. As we can see in the above chart from FactSet, S&P 500 revenue growth has surged over the last year. Moreover, jobless claims are falling, suggesting layoffs are not spiking. And so far at least, AI is not weighing on jobs. This chart comes from a recent academic study by economists at UCLA, and it shows that unemployment among recent college graduates is really just moving in its usual up-and-down range, despite the advent of AI back in 2022. Another study, from Berkeley and LSE economists, shows that the use of AI in software engineering has not hit jobs in that sector. Moreover, it’s boosted programmers’ productivity. In reality, all of this suggests that AI is more like spreadsheets, word processors, the smartphone and, going way back, the printing press: yet another technology that’s making people more productive. An “Old” 9.9%-Paying Fund for a “New” World This new world of both strong economic gains and economic pessimism is one where an investor can position themselves for quiet, solid gains. One channel for doing so is GAM, a nearly 100-year-old fund that has weathered some of history’s biggest crises. The fund survived the pandemic, the 2008/2009 financial crisis, the dot-com bubble, and even older disasters, like the Great Depression. GAM’s IPO was in 1927, so it’ll hit the century mark next year. And my use of the word “survived” sells it short: GAM has thrived, with a 16.2% annualized total return, based on its market price, over the last 10 years. And yet, we have a 13.1% discount on the table here, which doesn’t make sense given the diversification of GAM’s portfolio, including high-value, high-performing companies like GE Vernova (GEV), Berkshire Hathaway (BRK.A), TJX Companies (TJX) and Republic Services (RSG). GAM also holds a lot of major tech firms, such as Apple (AAPL), Alphabet (GOOG), semiconductor maker ASML Holding NV (ASML) and Amazon.com (AMZN). That discount makes even less sense when we note that GAM yields 9.9%, based on its December payout. The fund also has a policy of paying out substantially all of its yearly net investment income and realized capital gains as dividends, mainly as a year-end distribution. That payout is made in the form of shares, though you can request cash. GAM’s payout will vary depending on its NAV returns, but at 15.3% annualized over the last 10 years, a payout in the 9.9% range has been well supported. The bottom line? GAM is a strong fund to consider for the market’s current moment, especially with the fund’s wide discount and strong history.

EV chargers, (more) industrial steam, electric motors, data-centre cooling tech, heat batteries — even modular buildings.A few are infrastructure. Others look suspiciously like venture capital investments that look odd in an infrastructure income trust. Together, my reconstruction values them at £80m. But how much becomes realisable cash?1. What’s left in the cupboard?There is approximately £80m of equity value outside SEIT’s five largest investments. Kyotherm’s April 2026 acquisition removed eleven other investments, including Capshare, Future Energy Solutions and Sparkfund, at a price 9% below their September 2025 carrying value.Encouraging — but not a price guarantee for what’s left.The issue isn’t whether these companies are interesting. It’s whether they can be sold, when, and to whom.

2. Zood — the electric elephant in the roomZood is the largest residual exposure. It owns UK charging infrastructure; The EV Network (EVN) is a separate development business in which SEIT has a minority interest. At the end of 2024 Zood had 29 sites and 127 ultra-fast chargers.SEIT’s March 2025 valuation was £43m, including £10.6m owed to Holdco. My reconstructed March 2026 equity value is approximately £31m — an estimate, not a separately disclosed asset valuation. With £18m of structural debt, that suggests £49m enterprise value, subject to reconciling the shareholder-loan treatment.That is 10.2× my FY27 EBITDA forecast of £4.8m, or 8.6× FY29’s £5.7m. Neither forecast is management guidance. A buyer will want actual utilisation, kilowatt-hours sold, site margins, maintenance capex and free cash flow.Connections and site rights have value and these are the 50 Zood and EVN locations.SEIT confirmed that Zood’s FY26 operating cash was retained in the business, not sent to Holdco. So Zood can be profitable without helping SEIT repay its RCF today.The working model assumes the following levels of Cash generation.These are Oak Bloke projections, not reported Zood forecasts.

3. Huntsman — a steam engineHuntsman Energy Centre supplies steam under a long-term industrial arrangement. Commercial operation began in June 2023 after delays. The March 2025 equity valuation was £13m, but water treatment, equipment defects and steam-compressor reliability caused problems. A buyer pays for dependable contracted steam, not a faulty boiler. Establish reliability before selling, if the cost of waiting is justified.

4. Citi Riverdale — small but usefulCiti Riverdale is more straightforward, if tiny. My reconstruction implies about £2m equity value from £3m enterprise value and £1m historical debt. Bundle it with similar assets rather than spend a fortune selling it alone.5. V.C. Tech Bets rather than infrastructureThe technology positions are different. Their value may be real, but a minority stake in a promising company is not the same as distributable cash:

5a

TurntideSEIT invested approximately £8m into Turntide Technologies in May 2022 and a further £3.1m in August 2023. That gives us about £11.1m of identifiable historical investment. Turntide develops efficient electric motor and electrification technology.There is encouraging evidence of continuing industrial development. In August 2026, Turntide announced selection for a £17m matched-funded UK manufacturing project involving axial-flux motors, subject to government approval.That’s relevant to its commercial prospects. However, a £17m project is not a £17m payment to SEIT, nor does it establish a valuation for SEIT’s equity interest.My conclusion: Turntide may have meaningful strategic value, but the wind-down creates a mismatch between the company’s potentially long commercial development timetable and SEIT’s requirement to realise cash.

5b. Iceotope — an interesting beneficiary of AIIceotope is a UK liquid-cooling technology company. SEIT’s initial commitment in June 2022 was approximately £3m. The investment thesis is easy enough to understand. Higher-density computing creates cooling problems, especially in AI infrastructure.And in May 2026 Iceotope announced a $26m Series B financing round led by Two Seas Capital and Barclays Climate Ventures, with participation from other investors. That provides fresh third-party evidence of interest in Iceotope’s technology.Without a valuation, terms and diluted ownership, I cannot translate $26m of company funding into an accurate valuation of SEIT’s stake. This is a particularly important distinction in venture investing. A company can become more valuable while an early investor’s ownership percentage is diluted.My conclusion: Iceotope offers attractive strategic upside and has fresh external financing validation.

5c. Rondo Energy — storing heat in bricks Rondo Energy develops industrial heat batteries. Its technology stores electrical energy as heat in inexpensive solid materials, enabling industrial users to receive high-temperature heat or steam. SEIT invested approximately £2.4m in June 2023.Rondo’s industrial applications make the business unusually relevant to SEIT’s broader investment philosophy. In January 2026, Rondo and Covestro announced the start of construction of a heat-battery installation at Covestro’s Brunsbüttel site in Germany, with commissioning planned for the end of 2026.This is a useful commercial milestone. However, a technology entering commercial deployment can still be many years away from generating substantial shareholder distributions.The investment may ultimately command a meaningful strategic valuation, but it is unlikely to solve SEIT’s immediate liquidity requirements.My conclusion: Rondo is precisely the type of asset I wouldn’t want management to dispose of cheaply simply because its present cash generation is negligible.Nevertheless, some realistic price must be attached to the time and uncertainty involved in exiting the stake.

5d. SOGA, Sustainable Living Innovations and BlocPowerThese are smaller positions, but deserve inclusion rather than simply disappearing into an anonymous residual number.SOGA is associated with commercial rooftop solar investment in Asia, including Vietnam. SEIT originally invested approximately £2m in April 2021.It may offer strategic or project value, but I don’t have sufficient evidence to forecast meaningful cash distributions.Sustainable Living Innovations (SLI) received an approximately £4m SEIT investment in October 2021. Its modular-building technology is interesting, but commercial viability and the residual value of SEIT’s equity matter more than the original investment narrative. There is also public US litigation involving SLI, including a November 2025 order relating to an unpaid settlement and entry of judgment.BlocPower is especially important from an accounting perspective. SEIT’s historical commitment was much larger than the approximately £0.2m I could identify as actually deployed by March 2023.For all three, I would expect opportunistic disposals or transfers, rather than significant near-term operating distributions.6. Reconstructing the historical investmentHere are the four modelled portfolio outcomes. All are net of asset-level debt, but before deducting SEIT’s Holdco RCF and central wind-down expenses.Detailed breakdown:These amounts also mix investment commitments, inferred historic costs and broader programme funding. They should not be mistaken for a precisely audited cash-investment ledger. Nevertheless, they provide a useful perspective.Against approximately £84m of identified historical deployment, the residual portfolio has a reconstructed current NAV of approximately £80m.These don’t look like a collection of assets whose carrying value can automatically be recovered in a hurry.7. Turning £80m of NAV into cashMy base case is that £80m turns into £69m by FY29 with Cash Received being modest over the next 3 years (£7.25m only). In fact I assume further money goes to the portfolio and supports the portfolio.The Cash Bridge Estime to FY29In a bull case SEIT recovers slightly more than NAV while a Severe Bear leaves much of the portfolio effectively worthless.These amounts are net of project debt.8. If we refocus on the actual question the £69.1m Base for the Odds and Sods could still be too generous. Zood’s site economics are insufficiently observable; Huntsman’s defects may persist; and minority investors can be diluted or forced to accept poor secondary-sale prices. Buyers knows SEIT is winding down.Nor does the Kyotherm disposal at 91% of NAV prove that this more awkward collection will achieve anything similar. Much of the £80m remains reconstructed rather than individually disclosed. A £32m Severe Bear is the reminder that accounting value and realised cash are different things.9. Conclusion — Calamitous? Or Calm down dear?£80m on the books. £69.1m in my Base Case. That’s 6.37p a share before Holdco costs. In my Base Case we are now at 40.8p per share capital returns.And two assets still to go.Zood dominates the valuation risk. Huntsman needs dependable operations. Turntide, Iceotope and Rondo have genuine commercial promise, but that is not the same as a cheque for SEIT shareholders.Sell what’s easy, wait only where time demonstrably adds value, and don’t let the tail hold up the rest of the wind-down. Cash received — and when — is the scorecard.

RegardsThe Oak Bloke.Disclaimers:This content is for educational and informational purposes only. It does not consider your personal circumstances and is not financial, investment, tax, legal, or professional advice. Nothing here is a recommendation, offer, or solicitation to buy, sell, or hold any investment. Investing involves risk, including the loss of capital. You are solely responsible for your own decisionsMicro cap and Nano cap holdings might have a higher risk and higher volatility than companies that are traditionally defined as “blue chip”PS: In my Severe Bear Case model the Detractors are still sneeringly happy. Just 13.2p recovered post DCF vs 33p can SEIT make 19.8p with just two Assets left?

Greencoat UK Wind PLC Capital Markets Event

Greencoat UK Wind PLC

15 October 2026

GREENCOAT UK WIND PLC

Capital Markets Event

Greencoat UK Wind plc (“UKW” or the “Company”), the leading listed renewable infrastructure fund, is today hosting a Capital Markets Event for institutional investors and analysts.

The event will set out how UKW will build on its established business model, bringing its scale and self-generated capital to a broader set of UK wind investment opportunities that deliver more durable long-term returns for shareholders.

The Company’s business model has generated £1.1bn for re-investment since IPO, with a similar amount of self-generated capital anticipated over the next five years. The Company will outline how it will apply this capital in a broader set of competing opportunities that will include selective investment in construction, life extension and repowering, while retaining operational assets at the core of its portfolio.

Lucinda Riches, Chairman of Greencoat UK Wind, said:

“UKW has built a high-quality portfolio of operating wind farms over more than a decade, delivering strong cash generation and a dividend that has grown in line or above inflation. Our scale, ability to fund investment from within and established expertise put us in a strong position to capitalise on the opportunities ahead.

“Our core investment proposition remains unchanged. What is evolving is how we deliver it. By broadening our investment toolkit, we can access a wider range of attractive opportunities within UK wind, extend the life of our portfolio and deliver a stronger, higher value portfolio for our shareholders, while maintaining our disciplined approach to capital allocation.”

Acquisition of remaining minority interest in a 96.4 MW wind portfolio

The Company today announces that it has acquired the remaining 20 per cent stake in a 96.4 MW portfolio of five operational windfarms in the UK from EDF Invest, taking its ownership to 100 per cent. Consideration for the transaction was circa £10.5m, funded from UKW net cash generation.

Consolidating ownership gives UKW full control of the operational life of these assets. Further, UKW will enter a joint development arrangement with EDF power solutions to progress the potential for repowering. The asset management, operations and maintenance arrangements with EDF power solutions remain in place.

At today’s event management will discuss the prospects for these assets, including the work underway to progress life extension and repowering.

TwentyFour Income Fund Limited

Dividend Announcement

The Directors of TwentyFour Income Fund Limited (“TFIF” or the “Company”), the FTSE 250-listed investment company that invests in less liquid higher-yielding UK, European, US and Australian asset-backed securities have declared a dividend in respect of the quarter ended 30 September 2026, payable as follows:

Ex Dividend Date 22 October 2026

Record Date  23 October 2026

Payment Date  6 November 2026

Dividend per Share 2.00 pence per Ordinary Share (Sterling)

Sequoia Economic Infra Inc Fd Ld

15 October 2026

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES

Sequoia Economic Infrastructure Income Fund Limited (“SEQI” or the “Company”)

MONTHLY UPDATE & COMMENTARY – September 2026

The NAV per share for SEQI, the largest LSE listed infrastructure debt fund, decreased to 90.43 pence per share from the prior month’s NAV per share of 91.50 pence, representing a decrease of 1.07 pence per share.

	pence per share
31 August NAV	91.50
Interest income, net of expenses	0.57
Asset valuations, net of FX movements	-1.64
Subscriptions / share buybacks	0.00
30 September NAV	90.43

Interest income, net of expenses, of 0.57 pence per share partially offset the 1.64 pence per share decline in asset valuations, net of FX movements, resulting in an overall NAV decrease of 1.07 pence per share.

Asset valuations, net of FX movements, declined by 1.64 pence per share during September, comprising:

·   1.05 pence per share, of which a decline of 0.95 pence per share was due to adjustments to Active Care Group (“ACG”), as outlined in the “Ongoing investment in ACG” section below.

·      0.27 pence per share from lower fixed-rate loan valuations, largely driven by the material rise in risk-free rates during September. These unrealised mark-to-market losses attributable to interest-rate movements are expected to unwind as investments approach repayment.

·      0.32 pence per share from other valuation and FX movements, mostly driven by unrealised FX losses on the hedging book.

As the portfolio is approximately 100% currency-hedged, no material net FX gains or losses are expected over time. However, differences in the valuation methodologies used for FX hedges and the underlying investments can give rise to short-term unrealised FX movements in the NAV. These fluctuations typically reverse over time.

Key Performance Highlights – September 2026

Dividend yield of 8.10%^[1], based on the closing share price of 84.90 pence as at 30 September and the annual dividend target of 6.875 pence per share.  

Weighted average portfolio yield-to-worst (“YTW”) was 9.61% as at 30 September, reflecting the portfolio’s strong income returns.

Portfolio pull-to-par^[2] (which is incremental to NAV as loans mature over time) was 4.53 pence per share as at 30 September, increasing from 4.29 pence per share as at 31 August.

12-month (to 30 September) share price total return was 18.64%.

Performance Highlights
Cumulative Total Returns	1Y	3Y	5Y
NAV	3.87%	21.29%	25.15%
Share Price	18.64%	31.83%	18.25%

Market Summary – September 2026

·	Risk-free rates increased sharply across SEQI’s key investment regions during September. The US 5-year Treasury yield rose by 0.60% to 5.09%, the UK 5-year gilt yield by 0.35% points to 4.98%, and the German 5-year government bond yield by 0.30% points to 3.33%. These increases generally resulted in downward valuation movements for the portfolio’s fixed-rate investments, equivalent to 0.27 pence per share.
·	Elevated energy prices, particularly diesel, continued to exert inflationary pressure through higher transport, logistics and production costs. The Investment Adviser expects these pressures to persist while the Russia-Ukraine war and conflicts in the Middle East continue to disrupt refining capacity and energy supplies.
·	Eurozone headline inflation increased to 3.2% in August, UK CPI rose to 3.1%, and US headline inflation remained elevated at 3.4%. At their September meetings, each of the Federal Reserve and ECB increased interest rates by 0.25%, while the Bank of England maintained the rate at 3.75%.
·		In a higher interest-rate environment, SEQI benefits from its dynamic interest-rate positioning, with 55.5% of the portfolio invested in fixed-rate instruments as at 30 September.

·	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.

Portfolio Update – September 2026

Revolving Credit Facility and Cash Holdings

·	As at 30 September, SEQI had drawn £87.9 million under its £250 million revolving credit facility and held cash of £41.2 million, inclusive of interest income. Net undrawn investment commitments stood at £54.0 million.

New Investment Activity – September 2026

·	A senior secured loan of $60 million extended for Project Cloud, financing the acquisition of a portfolio of six operating power generation assets in New York State with a combined capacity of approximately 1.55 GW. Taking account of upfront fees and when converted into SEQI’s base currency, the yield to maturity (“YTM”) on this loan is 10.34%.
·	A drawdown of €4.4 million by Portuguese High-Speed Rail, a project company developing a high-speed railway line in Portugal connecting Porto to Aveiro, forming part of the wider Lisbon-Porto high-speed rail corridor. SEQI’s total commitment is €24.0 million. When converted into SEQI’s base currency, the YTM on this loan is approximately 9.44%.
·	A drawing of approximately £5.2 million by ACG Bidco Ltd under a senior loan facility. An update on the company’s exposure to the Active Care Group and exit strategy is covered in more detail below.

No investments repaid during September.

Ongoing investment in ACG

Active Care Group, or ACG, is the UK’s leading provider of complex care, with over 5,000 employees and supporting over 2,000 people each day. Services include neuro-rehabilitation, brain and spinal injury, learning disabilities and autism, and adult mental health, and are provided through a mixture of specialist hospitals, residential facilities and care in the home. The Company acquired the entire share capital of ACG in May 2024 following a restructuring of the business. Since then, the Company has provided funding to improve the quality of clinical care, as evidenced by materially better Care Quality Commission ratings across its estate.

The Company’s current exposure to ACG consists of various classes of senior loans, totalling 5.0% of NAV, that are held at the operating company level and are supported by underlying assets and cash flows from the business. In addition, SEQI has exposure to ACG through a Holdco loan, currently equal to 1.3% of NAV, which is held higher in the ACG group capital structure, the value of which is dependent upon the residual value of the ACG group business after its senior debt has been repaid. This economic substance of this tranche is, equivalent to the full equity interest in the business.

The exit strategy from ACG is continuing and consists of three phases:

1.     A strategic refocus of the ACG business, which is already underway, from a predominantly public-sector funded revenue model to one with a significantly higher proportion of private-pay revenues, which are generally more profitable and typically more resilient to cost pressures. This business, under the Active Neuro brand, will focus on neuro rehabilitation, which is regarded as a fast-growing, under-served and high-margin sector of the UK healthcare market. This transition of the ACG business will involve both opening new facilities and repositioning existing ones. The Company will be providing financial support to ACG with funding for capex to bring new facilities into active service delivery, and funding for certain opex items which include costs associated with existing facilities that are being re-positioned. This additional future funding is estimated to be approximately 0.9% of current NAV of SEQI, which equates to approximately £12.5 million, and is expected to be largely provided to ACG over the next three months.

2.     In parallel with the re-orientation of its business portfolio, ACG is in the process of a disposal programme involving divesting certain non-core and relatively low-growth business divisions. This asset optimisation process began with the successful disposal of Remeo, a specialist provider of inpatient ventilator weaning and respiratory rehabilitation care, to SOL Group earlier this year. Further disposals are expected over the coming 12 months. Proceeds from these disposals are expected to reduce group indebtedness and provide further funding for investment into growth opportunities within the Active Neuro division.

3.     SEQI intends to fully exit from the business after the Active Neuro division has scaled up and the completion of the disposal programme. Additionally, it may be possible for ACG to raise third-party funding prior to that, which may result in a reduction in SEQI’s exposure to the business.

The Company is mindful of the execution risks associated with delivering the exit strategy outlined above, notably the successful disposal of non-core assets and the pivot to a business with a much higher exposure to the private sector. The current valuation of its investment in ACG reflects the present value of an estimate of the final exit value of the business, taking account of a range of outcomes of ACG’s strategy. The Company is closely monitoring and will continue to incorporate any changes in expected outcomes into the modelling used in SEQI’s published monthly valuations. 

Asset valuations are independently reviewed every month by PricewaterhouseCoopers LLP (“PwC”).

Portfolio Composition

·	SEQI’s invested portfolio as at 30 September consisted of 49 private debt investments and two infrastructure bonds, diversified across 8 sectors and 25 sub-sectors.
·	Private debt investments which allow SEQI to capture illiquidity yield premiums, represented 94.3% of the total portfolio.
·	The weighted average loan life was 3.1 years.
·	SEQI’s portfolio remained geographically diversified, with 44.2% of investments located in the U.S., 22.6% in the U.K. and 33.2% in Europe.

Non-performing Loans – September 2026

·	SEQI continues to work towards maximising recovery from two non-performing loans in the portfolio (representing 1.4% of NAV[3]). There are no additional updates on non-performing loans during September.

Diversified Portfolio

Portfolio by Sector

Notes:

·      Valuations are independently reviewed each month by PwC.

Share Buybacks – September 2026

·	SEQI did not repurchase any ordinary shares during September 2026.
·	SEQI first started buying back shares in July 2022 and since then to the end of September 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.