- The recovery could take longer if bond yields don’t fall
- Low-risk infrastructure trusts look cheap, according to analysts
Infrastructure investment trusts have seen their discounts to net asset value (NAV) widen, as higher government bond yields in the US and in the UK once again delay a potential recovery.
The Association of Investment Companies’ infrastructure sector’s average discount reached 18.6 per cent on 25 November, up from 14.5 per cent on 30 September. The discount on renewable energy infrastructure trusts rose from 19.8 per cent to 27.1 per cent over the same period.