TRUE Infrastructure Fund has delivered a total return to unitholders of 8.4%for the year to 30 June 2023.
· The Fund expects to continue to out-perform its long-term guidance during2023/24.
· Existing unitholders, and new unitholders who lodge applications by 25August 2023, will benefit from the valuation impact of new acquisitions by the Fund.
2023/24 PERFORMANCE & OUTLOOK
TRUE Infrastructure Management Pty Ltd, the Trustee of TRUE Infrastructure Fund (‘Fund’), has today announced that the Fund has generated a return to unitholders for the 12 months to June 2023 to 8.4% (after fees). Since inception, the Fund has achieved an annualised return to unitholders of 9.9%,in excess of the Fund’s long-term guidance of delivering an annual return in excess of 8%.
Further details regarding the results will be included in TRUE Infrastructure Fund’s quarterly report to investors, which is expected to be released during the week commencing Monday 24 July 2023.
Commenting on the performance, CEO of TRUE Infrastructure Management, Mr Peter McGregor, noted: “We are very pleased with the performance of the fund over the past 12 months and, indeed, since inception. The performance reflects both a continuing positive contribution from the underlying funds in the portfolio, together with active portfolio management throughout the year. In particular, the Fund has benefited from a number of secondary market acquisitions of stakes in the underlying funds on terms favourable to TRUE Infrastructure Fund unitholders.”
In respect of the outlook for 2023/24, TRUE Infrastructure Fund is expected to continue to achieve returns in excess of its long-term guidance as a result of:
· continuing high levels of inflation, which will flow through to improved revenue performance for a number of the underlying assets in the Fund’s portfolio;
· a strong pipeline of organic growth opportunities, particularly with respect tothe Fund’s interests in a range of renewable energy assets and projects; and
· further M&A opportunities, with regard to both new asset acquisitions by the underlying funds in the portfolio, and additional secondary market opportunities for TRUE Infrastructure Fund to acquire additional stakes in the underlying funds.
FUNDRAISING UPDATE
As previously announced, TRUE Infrastructure has entered into an agreement to acquire $15m in units in Energy Infrastructure Trust (‘EIT’)and $15m in units in Diversified Infrastructure Trust (‘DIT’) from an existing unitholder in those trusts. An initial tranche of $10m ($5m each in EIT and DIT) was completed and settled during June 2023. The remaining $20m ($10m each in EIT and DIT) will be completed and settled prior to the end of August 2023.
In order to fund the balance of these acquisitions, TRUE Infrastructure Fund will be seeking to raise $20m through the issuance of new units in the Fund during July and August 2023.
Based on the agreed acquisition price for the new EIT and DIT units, TRUE Infrastructure Fund is expected to benefit from an immediate revaluation of the new EIT and DIT units acquired to their published unit prices. This is expected to result in an uplift in the valuation of TRUE Infrastructure Fund units in excess of 1.7% for the period from 1 July 2023 to 30 August 2023. This return is independent from, and in addition to, the underlying performance of the Fund and its investments during the period.
In order to give new and existing unitholders the opportunity to benefit from this expected valuation uplift, TRUE Infrastructure Management has announced that all valid applications received prior to close of business on Friday 25 August 2023 will be allotted new units at the 31 July 2023 unit price, meaning that they will receive the full benefit of the valuation uplift resulting from these acquisitions.
Commenting on the acquisitions and fundraising, Mr McGregor stated: “We see the acquisition of these new stakes in EIT and DIT as being a positive outcome for unitholders. In particular, we see the valuation uplift resulting from the acquisitions as representing an opportunity for new and existing unitholders to gain or increase, on favourable terms, exposure to a Fund which provides:
· immediate access to a portfolio of high-quality infrastructure assets otherwise only available to institutional investors;
· a unique opportunity to invest in Australia’s energy transition;
· a demonstrated track record of delivering strong returns to investors with minimal volatility; and
· multiple growth options to underpin ongoing performance and deliver value to investors.”
