Ecofin Global Regulatory News (EGL)

Annual Results Announcement for the year ended 30 September, 2021

LEI: 2138005JQTYKU92QOF30

This announcement contains regulated information.

Ecofin Global Utilities and Infrastructure Trust plc (the "Company") is an authorised UK investment trust whose objectives are to achieve a high, secure dividend yield on a portfolio invested primarily in the equities of utility and infrastructure companies in developed countries and long-term growth in the capital value of the portfolio while preserving shareholders' capital in adverse market conditions.

Highlights

· During the year ended 30 September, 2021, the Company's net asset value ("NAV") per share increased by 22.9% on a total return basis. The Company's share price increased by 28.9% on a total return basis over the year

· Four quarterly dividends (1.65p per share) were paid during the year totalling 6.60p per share. With effect from the interim dividend to be paid in February 2022, the quarterly dividend rate will increase to 1.85p per share (7.4p per share per annum)

· The Company is continuing to issue new shares at a premium to NAV in response to investor demand. During the year, £10.6 million of shares were issued and another £0.7 million of shares have been issued since the end of September

· A tiered management fee took effect from 1 April, 2021 to help ensure that cost ratios continue to decline as the Company grows

1. Please refer to Alternative Performance Measures in the Annual Report.

2. Dividends paid (annualised) as a percentage of share price.

3. Gearing is the Company's borrowings (including the net amounts due from brokers) less cash divided by net assets attributable to shareholders.

4. The ongoing charges ratio is calculated in accordance with guidance issued by the Association of Investment Companies ("AIC") as the operating costs (annualised) divided by the average NAV (with income) throughout the period.

Source: Bloomberg, Ecofin

5. The Company was incorporated on 27 June, 2016 and its investment activities began on 13 September, 2016 when the liquid assets of Ecofin Water & Power Opportunities plc ("EWPO") were transferred to it. The formal inception date for the measurement of the Company's performance is 26 September, 2016, the date its shares were listed on the London Stock Exchange.

6. Total return includes dividends paid and reinvested immediately. Please also refer to the Alternative Performance Measures in the Annual Report.

7. The S&P Global Infrastructure Index and MSCI World Utilities Index are the global sector indices deemed the most appropriate for performance comparison purposes. The Company does not have a formal benchmark index. The other indices are provided for general interest.

Chairman's Statement

Performance

The end of the last financial year marked EGL's fifth anniversary and I am delighted to report that your Company's performance has been strong. The Company's net asset value (NAV) per share increased by 18.5% during the year to 30 September, 2021 and, including the reinvestment of dividends paid, the total return was 22.9%. The price of the Company's shares increased by 24.3% and the total return on the shares was 28.9%. In sterling terms, the MSCI World Utilities Index and the S&P Global Infrastructure Index recorded total returns of 3.5% and 17.1%, respectively.

Your Company's five year performance record is testament to the attractions of its investment universe and to the capabilities of our specialist investment manager. Our purpose is to provide an attractive dividend income and long-term capital growth for shareholders by investing in listed utilities, environmental services and other economic infrastructure sectors globally. Our goal is to deliver 6-12% per annum (total return) over time. From launch on 26 September, 2016 to 30 September, 2021 NAV total return averaged 11.3% per annum and share price total return averaged 17.1% per annum.

Dividends

The Company last increased its annual dividend rate (to 6.60p per share) in December 2019, just before the COVID-19 pandemic began. We are pleased to have maintained that rate even though investment income fell in the initial months of the pandemic. It subsequently recovered sharply and, with expenses under tight control, our revenue return per share increased by 20.3% in the year to 30 September, 2021.

In view of this progress and expected continuing growth in investment income we have decided to increase the quarterly dividend to 1.85p per share (7.4p per annum), effective from the interim payment at the end of February 2022.

Share issuance

The Company is taking every opportunity to issue new shares (at a premium to NAV) in response to investor demand. During the financial year, 5.725 million new shares (worth £10.6 million) were issued and another 355,000 shares have been issued since the end of September. We want to continue to increase the size of the Company because we believe that this will boost liquidity in the shares, thereby fostering participation by new investors; this will also reduce cost ratios.

Environmental, social and governance evaluation

Our investment manager, Ecofin, carefully considers environmental, social and governance issues in its investment process. These standards and risk factors are assessed at every stage of decision making, as outlined in the Annual Report. Ecofin uses its regular meetings with companies to challenge management teams about their adherence to best practices.

Annual general meeting

The Company's annual general meeting will be held on Wednesday, 2 March, 2022 at The Clermont, Charing Cross, Strand, London WC2N 5HX at 2.30pm and will include a presentation from the Investment Manager.

At the time of writing the situation with respect to COVID-19 is uncertain. In the event that it is necessary to change the AGM arrangements the Company will update shareholders through an announcement to the London Stock Exchange.

The Board strongly encourages all shareholders to exercise their votes in respect of the meeting in advance by completing and returning their proxy forms and appoint the Chairman of the meeting as proxy with voting instructions. This will ensure votes are registered. In addition shareholders are encouraged to raise any questions in advance with the Company Secretary via email to cosec@maitlandgroup.com.

Outlook

Since 30 September (to 14 December), the Company's NAV has increased by 7.8% and the share price by 0.2% (both on a total return basis). Economic recovery has been strong this year but pandemic-related manufacturing and supply chain disruptions are resulting in inflationary pressures. These risk curtailing GDP growth and margins for some companies unable to pass through cost increases. Whether these cost pressures prove transient or persistent will make a difference for the course of market interest rates, which are progressively rising from decade lows to levels closer to long-term inflation expectations. Over the medium term, inflationary pressures should have a neutral impact on most infrastructure owners, or even a positive one for companies where revenues are directly linked to inflation indices.

Your Company is investing in economic infrastructure businesses with long-term structural growth drivers and opportunities for sustained profitable development, as described in the investment manager's report. These companies continue to deliver solid results and have generally modest equity valuations, which is contributing to a flurry of M&A activity. There has been a distinct shift in gear with decarbonisation and environmental protection now top of mind for policy-makers and corporates, at a time when better technological solutions are becoming more available and, most importantly, increasingly cost efficient. The Company's portfolio companies are the global leaders in delivering these solutions and stand to benefit from accelerating structural growth as a result.

In addition to the potential for capital growth, our investment manager anticipates continuing growth in income from the portfolio which would enable further dividend increases in future years.

David Simpson

Chairman

20 December, 2021

Markets and our sectors

Economic optimism and equity markets increased for a large part of EGL's financial year with vaccine roll-outs, the relaxation of COVID-19 restrictions and additional central government stimulus packages. President Biden's inauguration and early priorities, including around fighting climate change and rebuilding infrastructure with sustainability prioritised, encouraged investors too, despite high equity valuations in many areas.

Sector leadership in equity markets changed abruptly as we entered calendar 2021 and the focus became the normalisation of activity levels, business operations and earnings, especially in those sectors which had been most bruised during the height of the pandemic in 2020. In EGL's investment universe, the more cyclical transportation infrastructure and waste management stocks were strong performers. 'Clean and green' equities, in contrast, were notable underperformers despite the positive tailwind of massive policy support and an abundance of positive catalysts for long-term growth. A degree of mean-reversion was perhaps due after the dramatic outperformance for the clean energy universe - which was largely unaffected by COVID - in 2020 and the attendant very large new ESG fund inflows.

Another factor pressuring performance for utilities, particularly renewables as well as other long duration business models, has been higher inflation and the increase in market interest rates. Shares in Enel, Iberdrola, RWE, Brookfield Renewable and NextEra Energy all reacted to the strength in commodities and freight prices threatening to squeeze renewables developer returns in the near term. Notwithstanding these headwinds, we maintained our conviction as renewables' economic competitiveness vis-à-vis fossil fuel alternatives continues to improve. This should allow large renewables developers to exert pricing power and defend future project returns.

We see encouraging signs that market prices for power price agreements (PPAs) are moving higher to accommodate increased capital expenditure. In most cases, because project returns are earned over a 20-30 year useful life, the pricing differential required to offset the cost increases is modest. For example, a 50% rise in the price of copper might only require a 3-5% increase in the price of the next PPA to keep expected project returns constant. Simultaneously, other factors such as improving productivity and efficiency of equipment as well as economies of scale continue to improve the economics of renewable energy.

Yet, the most significant factor in support of greater and faster investments in renewables is the higher market price for electricity. This is due to a variety of factors including recovering - or, in the case of China, even materially increasing - power demand, rising prices for coal and natural gas, poor hydro conditions in key regions such as Chile, Brazil and southern China, poor wind conditions in Western Europe, as well as a significant increase in the cost of carbon credits in Europe and Canada. This substantially improves the competitiveness of renewables. With a full-blown energy crisis underway by EGL's financial year-end, governments are seeking to accelerate the development of renewables and reduce the dependence of energy systems on highly volatile fossil fuels.

Persistently higher fuel commodity prices will increase substitution and conservation over time, both of which are needed to achieve climate goals, but in the near-term such dramatically higher energy prices are increasing the inflationary pressures. This is not only proving beneficial to power producers, which have outperformed this year in expectation of expanded margins on the back of higher realised prices, but should also over time benefit those regulated utilities operating in real regulatory environments (i.e., whose regulatory asset values are adjusted higher by inflation with a lag).

EGL's renewables-focussed utilities holdings started to perform again more recently and portfolio returns were also helped by the return of take-over activity in the listed infrastructure space. Portfolio holdings Covanta (US) and Spark Infrastructure (Australia) were both bid for within months of each other, an unsurprising turn of events given their quality businesses and the deep undervaluation of listed infrastructure compared to private markets. With cash-rich private equity firms continuing to look for investment opportunities in listed companies and larger public groups seeking to unlock hidden value, we expect further deals in the months and years ahead.

Performance summary

EGL's portfolio returns substantially exceeded those of comparable global indices during the financial year. Performance was broadly unaffected by the acute underperformance of utilities and renewables, thanks to successful stock selection and geographical diversification. EGL's NAV total return was 22.9%. While we do not manage the portfolio by reference to any single index, performance is generally measured against the S&P Global Infrastructure Index, which comprises utilities and economic infrastructure (like EGL's portfolio), and the MSCI World Utilities Index, which returned 17.1% and 3.5%, respectively, during the year in sterling.

Actively managed leverage was helpful to returns, contributing +4.7%, but sterling's strength against the US dollar (+4.3%) and Euro (+5.6%) produced a slightly larger drag on the NAV of -5.2%.

Leverage provided a small boost to the revenue account too. Although income from investments held up comparatively well in 2020, it increased 23.7% during 2021 helped by a normalisation of dividends from certain French holdings which had suspended shareholder remuneration last year. Also, dividend flows from portfolio holdings were generally strong, supporting our longer term expectation of 5-7% per annum growth in income.

The stock picking that allowed EGL to outperform its sectors included:

The share prices of China Longyuan Power and China Suntien Green Power increased by 303% and 338%, respectively. China Suntien's shares have been re-rating to better reflect the value of and growth prospects for the business as China incrementally pivots to cleaner electricity generation. It has a sustainable competitive advantage from a low carbon footprint and lower cost of power generation relative to rapidly rising power prices in China. Despite equally strong performance, Longyuan's three main catalysts remain on the horizon: an A-share listing potentially allowing a lower cost of capital; asset swaps with its parent such that Longyuan receives additional renewables projects while shifting its coal-fired assets to its parent; and a reduction in government incentives.

Covanta, a US waste-to-energy company, was bid for by EQT Infrastructure. Ecofin, which held approximately 1.7% of Covanta's outstanding shares across client portfolios, wrote to the company's board, which recommended that shareholders support the terms of the deal, twice to explain why we believed the bid significantly undervalued Covanta, which stands at the very outset of an earnings inflection, and to relay our dissatisfaction that the board did not consult with shareholders during the strategic review. We voted against the offer, but the resolution passed and the deal will close before year-end. The holding was a highly positive contributor to the NAV this year.

At the beginning of the fiscal year, another environmental share, Veolia, was reintroduced into the portfolio after a long-awaited bid for its main competitor Suez. The bid succeeded as expected and the shares rose by approximately 75% from our purchase level, buoyed by improving fundamentals driven by increased global economic activity and the increasingly tangible prospect of a 40% medium-term accretion from the deal.

Spark Infrastructure received what we believe is an attractive takeover offer at a fair premium, leading the stock to rise over 45% during the fiscal year. The investment fund, which owns a major proportion of Australia's electricity infrastructure, received a bid from a consortium including the large private infrastructure investors KKR and Ontario Teachers' Pension Plan. We await the details on the vote but are supportive in principle.

Drax and SSE performed very well in a poor year for many utilities. Drax was just outside the 'top 10' by year-end as we had increased the position significantly earlier in the year. The shares performed strongly on the back of rising power prices in the UK. Our forecasts for the longer term profitability of the biomass supply business and BECCS (bioenergy with carbon capture and storage) prospects are materially more optimistic than consensus. SSE's share price has been underpinned by press reports that activist investor Elliott is building a stake to push for a value-unlocking reorganisation of the group. The company's fundamentals are strong, with renewables generation resources (wind and hydro) set to expand considerably, coupled with above-average growth rates in the electricity networks business. This is sufficient to justify sector-leading returns in the medium term.

Exelon, a major investor in grid modernisation and power infrastructure in the US, saw its shares benefit from discussions surrounding policy support for its nuclear fleet - the largest source of zero-carbon electrons in the US market - from both State and Federal legislators. Rising electricity prices are increasingly positive for Exelon's fundamentals, giving the company the opportunity to lock in higher prices in the medium-term. The upcoming separation of the business into two entities - one focused on generation and one focused on utilities - has also been supportive to share price performance.

Finally, NextEra Energy continued to contribute positively to the NAV as the largest position in the portfolio through impeccable execution, reporting solid quarterly results with management conveying an optimistic message about the company's growth prospects, with limited impact from equipment cost inflation.

Outside China, shares in renewables-focussed utilities were under pressure for much of the year. Enel, Iberdrola, EDF, RWE, Endesa, Brookfield Renewable and TransAlta Renewables, all prominent holdings in our portfolio, underperformed. Sector-wide concerns centred on developer returns in an environment of higher inflation and interest rates were exacerbated by an array of idiosyncratic issues. The Spanish government's move in September to tax 'surplus' profits for utilities for six months hurt the share prices of Iberdrola, Endesa and Enel beyond that justified by the likely impact of the temporary measures, only for most of the impact to be reversed by the beginning of November. The French government's inconclusiveness on the restructuring of EDF hurt its share price performance throughout the year, offering only limited room for performance despite dramatically improved fundamentals. Elections in Germany, which to a large extent delivered continuity vis-à-vis the outgoing administration albeit with a notably larger role to play for the Green Party, detracted from RWE's performance by raising concerns that a faster closure of the company's coal plants may negatively impact profitability.

These large European renewables majors have received more favourable attention in recent months and their shares have started to recover.

Purchases and sales

As the year progressed, we gradually rebalanced the portfolio with four guiding principles:

• Reduce the portfolio's sensitivity to steeper yield curves and favour business models with inflation pass-throughs (Terna, Pennon, National Grid);

• Make room for names with above-average commodity exposure, and select names where share prices do not yet reflect the full extent of sharply higher carbon and power prices (Uniper, Drax, A2A);

• Partially rebalance the portfolio with additional transportation infrastructure (mainly toll roads) and environmental names to increase overall cyclical exposure (Atlantia, Atlas Arteria, Ferrovial, Veolia);

• Continue to look for new stock ideas in the US where the energy transition is less advanced but set to be accelerated by President Biden's climate policies (Exelon, AEP, Alliant Energy, AES).

Some holdings were reduced or sold during the year to accommodate the re-positioning. The largest of these was A2A, Italy's largest municipal utility, which had been added to the portfolio in November 2020. Our expectation of a significant increase in its growth ambitions was duly met at the company's capital markets day in January 2021 and the business continued to benefit from the rise in Italian power prices. The shares appreciated significantly, and the position was sold in June to lock in profits after the shares reached a level that was reasonably close to our fundamental valuation.

We lost conviction in Edison International, which continues to trade at attractive value but not getting the benefit of the doubt from investors around wildfire risks. Towards the end of the fiscal year, we reduced the holdings in China Longyuan and China Suntien Green as a risk management exercise rather than a reflection of a change in heart for their strong prospects. This proved particularly well-timed considering the shares' performance over the subsequent couple of months. We also reduced the holdings in renewables major Brookfield Renewable and exited Algonquin Power & Utilities, which have been disappointing stocks of late yet remain richly valued.

This renewables exposure was replaced through our investment in Transition, which was listed in Paris in June with a mission to invest in the energy transition, and the IPO of Acciona Energia, a 100% pure renewable energy company listed on the Spanish exchange with 11GW of renewables in operation, heading for 20GW by 2025, and a very attractive valuation.

Income and gearing

In the Interim Report we forecast that income from investments would increase this year by 15%; the final tally shows +23.7%. While we anticipated a strong year-over-year increase in cashflows and dividends for the portfolio constituents given the relatively low base of 2020, this was boosted by the resumption of payments from a few companies forced to suspend payments during the pandemic. The NAV also benefitted from a special dividend of £1.28m from Pennon, funded by the disposal of its waste business, which was categorised as a 'return of capital' rather than revenue. Over the coming years we expect the growth in income from investments in the portfolio to revert to approximately 5-7% per annum.

The level of gearing averaged 14% during the year. Borrowings were stepped up to approximately 16-17% early in 2021 and maintained until September, when leverage was scaled back following strong performance. At year-end gearing was 12.6%, although this measure included a 1.9% quasi-cash position in Transition, as well as two companies (Covanta and Spark Infrastructure), together 5.9% of the portfolio, which are subject to take-over offers. The portfolio yield was 4.2% as at 30 September, 2021.

Outlook

Extreme weather events, environmental disasters and spiking energy costs this year are more than ever pushing the public's attention to the increasing impact of climate change on our daily lives. Regulation and attitudes (including investor and consumer preferences) point to an increasingly constructive context for rapid progress towards sustainability targets, but significant action is both needed and likely.

Even before COP26, there were several favourable policy developments for infrastructure modernisation and development and more have been announced since. Xi Jinping reiterated China's target of carbon neutrality by 2060 and added that China would increase support for other developing countries in expanding low-carbon energy and not build new coal-fired power projects abroad. The EU released its "Fit for 55" plan with specific 2030 targets for renewables across the energy, building, industry and transport sectors. Japan issued a new draft energy policy with much higher renewable energy generation targets, particularly focused on offshore wind. Progress on the US Infrastructure Bill and Budget Reconciliation was slower than anticipated, but many measures announced so far would be very supportive of energy transition end-markets.

These serve as positive catalysts for EGL's sectors, at a time when government policy, once the main and often only driver of energy transition investments, is being complemented by increasing corporate demand for solutions to improve the sustainability of their business models. Companies are turning to renewables to lock in their electricity cost base, gaining the double benefit of long-term cost visibility and reducing or eliminating their carbon footprint. While the smaller renewables developers may struggle to tap into this opportunity due to delays and cost increases, the larger utilities should emerge stronger, with increased demand for their renewable output and more projects to choose from.

We remain confident that new investment in the renewables industry will maintain historic levels of returns going forward. Renewables remain the lowest cost option for new electricity development almost everywhere, and the speed and scale of substitution continues to accelerate. Decarbonisation of the grid with these resources will be a multi-decade undertaking. Supply constraints forcing price increases for natural gas, coal, oil and electricity will not derail and instead should accelerate the (not always smooth) transition underway.

We believe that EGL's portfolio can deliver solid growth in a variety of economic and market environments. We continue to find opportunities, with companies in the portfolio and on our watchlists proving their resilience. The development of their pipeline of opportunities provides investors with greater visibility on cash flow growth over the coming years. Valuations in our sectors still largely reflect historical norms rather than the substantial growth we envisage given the course of policy and corporate capital allocation plans, and they became increasingly attractive during the year as the broader market extended its rally. We are seeing the impact of well-funded private equity investors bidding for listed infrastructure companies and expect corporate activity to continue and even accelerate in the coming years. With government policy, public opinion and corporate governance all pushing in the same direction, the underperformance of renewable energy equities earlier this year should prove to have been nothing more than a short-term setback.

Ecofin Advisors Limited

Investment Manager

20 December, 2021

Key performance indicators

The Company's Directors meet regularly to review the performance of the Company and its shares. Key performance indicators ("KPIs") used to assess the Company's progress and its success in meeting its objectives are set out below. Please also refer to Alternative Performance Measures in the Annual Report.

1. Total return, assuming reinvestment of dividends.

2. The dividend cover is the proportion of the dividends paid to shareholders which was covered by net revenues.

The performance of the Company's portfolio is not measured against an equity index benchmark. The Investment Manager's asset allocation process pays little attention to the country and regional compositions of the main global utilities index, and the global listed infrastructure indices which are typically dominated by utilities. The Directors, therefore, review portfolio performance against the most comparable global sector indices, the MSCI World Utilities Index and the S&P Global Infrastructure Index which serve as reference points, and ratios to understand the impact of gearing, currencies, sub-sector performance, geographical allocations and stock selection decisions on the Company's overall investment performance. Stock selection is measured against relevant local and regional indices and monitored by the Board. The Directors also review the level of the share price premium/discount to NAV and the level and composition of ongoing charges incurred.

As outlined in the Chairman's Statement, the Directors were pleased with the overall performance of the Company in the financial year. The NAV and share price returns exceeded those of the global sector indices by a considerable margin, dividend cover increased and the ongoing charges ratio declined.

The net revenue return per share for the financial year was 5.98p, a 20.3% increase from the previous year (please refer to the Investment Manager's Report for detail). Income increased by 23.7% year-over-year, expenses charged to the Company's revenue account increased by 13.7%, and the weighted average number of shares outstanding rose by 6.9%. The ongoing charges ratio declined to 1.43% (from 1.48% last year).

The ongoing charges ratio is calculated in accordance with AIC recommended methodology using the charges for the current year and the average NAV during the year of £183,936,000.

Principal and emerging risks associated with the Company

The Directors have carried out a robust assessment of the principal and emerging risks facing the Company, including those that would threaten its business model, future performance, solvency and liquidity. The specific financial risks associated with foreign currencies, interest rates, market prices, liquidity, credit, valuations and the use of derivatives - which may or may not be material to the Company - are described in note 16 to the Financial Statements. The Board conducts this robust assessment by reviewing a detailed Risk Matrix on a regular basis. A full analysis of the Directors' review of internal controls is set out in the Corporate Governance Statement in the Annual Report.

The principal risks facing the Company are summarised below along with, where appropriate, the steps taken by the Board to monitor and mitigate such risks.

COVID-19

The Board continued its diligence on the impact of COVID-19 on the Company and its service providers. As lockdowns were lifted the Company's third-party service providers either continued to work from home or migrated into offices, in both cases without any disruption to service or impact on quality or communication. The Board is comfortable that the Company's third-party service providers' business continuity plans are sufficient to mitigate ongoing risks posed by COVID-19.

Performance and market risk

The performance of the Company depends primarily on the investment strategy, asset allocation and stock selection decisions taken by the Investment Manager within the parameters and constraints imposed by the Company's investment policy. The investment policy guidelines can only be materially changed by proposing an ordinary resolution at a General Meeting for shareholders' approval. The Company invests in securities which are listed on recognised stock exchanges so it is regularly exposed to market risk and the value of the Company's portfolio can fluctuate, particularly over the short-term, in response to developments in financial markets. The Board has put in place limits on the Company's gearing, portfolio concentration, and the use of derivatives which it believes to be appropriate to ensure that the Company's investment portfolio is adequately diversified and to manage risk. The Board meets formally at least four times a year with the Investment Manager to review the Company's strategy and performance, the composition of the investment portfolio and the management of risk. The Board examines the sources of investment performance, which are described in attribution analyses prepared by the Investment Manager's Head of Risk for each Meeting, volatility measures, liquidity and currency exposure, and the Company's gearing. The Investment Manager's Head of Risk monitors and helps to manage portfolio risk.

Income risk

The Company is committed to paying its shareholders regular quarterly dividends and to increasing the level of dividends paid over time. The dividends that the Company can pay depend on the income it receives on its investment portfolio, the extent of its distributable reserves and, to a lesser extent, its level of gearing and accounting policies. Cuts in dividend rates by portfolio companies, a change in the tax treatment of the dividends received by the Company, a significant reduction in the Company's level of gearing or a change to its accounting policies, under which 50% of the investment management fee is currently charged to capital, could adversely affect the net income available to pay dividends.

The Board monitors the net income forecast, including each component revenue and expense line item, prepared by the Administrator for quarterly Board meetings. These are discussed in some detail to assess the Investment Manager's level of confidence in the income growth profile of the portfolio and to mitigate any risk of revenue shortfall relative to expectations.

The Board applied successfully to cancel the Company's share premium account in November 2016 and the resulting special reserve is available, when the Board considers it appropriate, to augment the net income available to pay dividends to shareholders.

Liquidity risk

While the Company invests principally in highly liquid securities listed on recognised stock exchanges in developed economies, it also invests to a limited extent in securities traded in emerging markets and in securities which are more thinly traded. As the Company is a closed-end investment company it does not run the risk of having to liquidate investments on unattractive terms to meet redemptions by investors although it is exposed to price risk; that is, that it will be unable to liquidate a position in a thinly traded security at the valuation at which it is carried in the Company's accounts. It is also exposed to a risk that its prime broker, Citigroup Global Markets Limited ("Citigroup"), which provides a flexible borrowing facility, could request that borrowings be repaid with three days' notice. The Board reviews the liquidity profile of the Company's portfolio on a regular basis. The Investment Manager's Head of Risk also keeps the liquidity risk profile of the Company's portfolio under close review. The liquidity analysis regularly shows that, if required, 98% of the portfolio could be liquidated within five business days assuming trades to accomplish this accounted for up to 30% of average daily trading volumes.

Operational risks

In common with most other investment trusts, the Company has no executive directors, no executive management and no employees. The Company delegates key operational tasks to third-party service providers which are specialists in their fields: the management of the Company's investment portfolio to the Investment Manager, Ecofin Advisors Limited; the preparation and maintenance of the Company's Financial Statements and maintenance of its records to the Administrator and Company Secretary, BNP Paribas Securities Services S.C.A and Maitland Administration Services Limited, respectively; the worldwide custody of the Company's assets to Citigroup and the safekeeping and oversight services to Citibank UK Limited ("Citibank") as Depositary. The Board reviews the performance of these third-party service providers and their risk control procedures on a regular basis as well as the terms on which they provide services to the Company.

Environmental, Social and Governance ("ESG")

ESG considerations and policies have become some of the most critical issues confronting companies and their shareholders and can have a significant impact on the business models, sustainability and even viability of individual companies. These sustainability issues are a key area of focus for the Board, and the Board maintains a regular oversight of the Investment Manager in this area.

ESG factor analysis is undertaken on all portfolio holdings and prospective investments by the Investment Manager, Ecofin, a specialist investor in sustainable infrastructure and the energy transition. In a rapidly changing environment surrounding sustainability and ESG, Ecofin works to determine the best practices to incorporate into investment criteria and to make reporting available to the market. As a long-standing specialist in the Company's sectors, Ecofin actively engages with portfolio companies and investments in an effort to drive continuous improvement in their sustainability practices and metrics. The Board regularly reviews the way ESG considerations are integrated into the decision making process by the Investment Manager to mitigate risk at the stock selection and portfolio levels.

Relationship with the Investment Manager

Ecofin Advisors Limited ("Ecofin UK") is the Investment Manager, regulated by the FCA and registered with the SEC. Ecofin UK is indirectly wholly owned by TortoiseEcofin Investments, LLC, (previously Tortoise Investments, LLC), a US-based firm which owns a family of investment management companies (collectively "TortoiseEcofin") (previously Tortoise). TortoiseEcofin provides support across a variety of functions and integrated teams across the firm allow for collaboration and synergies.

Viability statement

The UK Financial Reporting Council ("FRC") maintains the UK's Corporate Governance Code (the "Code") to promote high quality corporate governance and reporting. Under the Code, the Directors are required to state that in their opinion the Company's resources are adequate for it to continue in business for at least twelve months from the date of the Financial Statements and, therefore, it is appropriate that the Financial Statements be prepared on a going concern basis. This statement appears in the Directors' Report in the Annual Report.

In accordance with provision 31 of the 2018 Code, the Directors are also required to assess the prospects for the Company over a longer period than the twelve months referred to in the going concern guidance and statement. The Directors have elected to review the viability of the Company for a five year period up to the Annual General Meeting ("AGM") of the Company to be held in 2027 principally because they consider that any investment in the shares of the Company should be made on a medium to long-term basis.

In assessing the viability of the Company over this five year period, the Board has performed a robust assessment of controls over the principal risks. The Board considers, on an ongoing basis, each of the principal risks noted in the Strategic Report and set out in note 16 to the Financial Statements. The Board has evaluated scenarios of possible future circumstances, including a significant and prolonged fall in equity markets and a material increase in expenses, and considered the latest assessment of portfolio liquidity. The Board monitors income and expense projections for the Company, with most of the expenses being predictable and modest in comparison with the assets of the Company. A significant proportion of the Company's expenses are investment management fees based on the Company's NAV and these would naturally decline if the market value of the Company's investments were to fall. The Board also took into consideration the operational resilience of its service providers during the COVID-19 pandemic.

Based on the above, their assessment of the nature of the Company, its investment policy and financial resources, and with careful consideration given to the current market situation, the Board has concluded that there is a reasonable expectation that the Company will be able to continue to operate and meet its liabilities as they fall due over the next five years.

Other risks

In the opinion of the Directors, an investment in the shares of the Company entails a greater than average degree of risk, in the context of the investment trust industry, because the Company employs gearing, as explained on in the Annual Report. In addition to the risks borne by the Company described above, investors in the shares of the Company are exposed to risks due to the investment policy (described in the Annual Report) of the Company. These are risks that cannot be mitigated without changing the investment policy, and one risk, the risk that the price of a share might trade at a substantial discount to its NAV, reflects the demand for the Company's shares in the secondary market.

Gearing and capital structure

The Board has authorised the Investment Manager to utilise gearing, in the form of borrowings under the Company's prime brokerage facility, although the gearing is not structural in nature and can be reduced at any time. Whilst the use of gearing will enhance the NAV per share when the value of the Company's assets is rising, it will have the opposite effect when the underlying asset value is falling. In the event that the prime brokerage facility were to be renegotiated or terminated, the Company might not be able to finance its borrowings on as favourable terms.

Non-OECD or emerging markets

The Company's policy on diversification, noted in the Annual Report, permits the Investment Manager to invest up to 10% of its investments, measured at the time of acquisition, in the securities of companies incorporated in countries which are not members of the OECD such as emerging markets, and quoted on stock exchanges in such countries. Investment in emerging markets may involve a higher degree of risk and expose the Company to, among other things, less well developed legal and corporate governance systems, a greater threat of unilateral government action with respect to regulation and taxation, and a higher risk of political, social and economic instability than an investment in developed, OECD markets. These risks are mitigated through diversification and fundamental analysis.

Foreign exchange risk

As noted in the investment policy in the Annual Report, the Company's Financial Statements are prepared in sterling and its shares are denominated in sterling. Many of the Company's investments, however, are denominated in currencies other than sterling and, as a result, the value of the Company's investment portfolio is exposed to fluctuations in exchange rates. Although the Company may hedge non-sterling exposure from time to time, it is not the Company's policy to try to minimise or eliminate foreign exchange risk as over the long-term this could restrict the investment returns potentially available to sterling-based investors in international securities. There is a risk for the NAV, therefore, if sterling appreciates significantly against foreign currencies.

Political risk

The Board has considered the political uncertainties prevailing in the UK while the impact of Brexit evolves and the risks associated with potential changes to regulations, laws and/or taxes. The Board continues to believe that the Company's strategy of investing in an internationally diversified portfolio of companies is the correct model to achieve its investment objectives.

Share price premium/discount to NAV

While some investors may view the opportunity to purchase a share of the Company at a discount to its NAV as attractive, the volatility of the price of a share and the premium/discount adds to the risks associated with an investment in the Company's shares. The Directors review the level of the premium/discount on a regular basis and will use their ability as granted by shareholders to address any sustained or significant discount or premium to

NAV, as and when it is appropriate, through the repurchase or issuance of stock. The repurchase of stock will be subject to, but not limited to, market conditions and availability of cash resources.

Environmental, social and governance ("ESG") policy

Your Board believes that analysis of ESG factors is an essential element of the investment management process and that companies exhibiting good ESG credentials are more likely to perform well over the longer-term. The Investment Manager's research process integrates traditional fundamental analysis and a study of ESG factors which it believes may affect stock valuations and shareholder value. Engagement and proxy voting are integral parts of active management and a case-by-case assessment is made for decisions relating to all proxies, corporate actions and events relating to portfolio holdings. We endorse the Investment Manager's active stewardship approach and are pleased that its parent company is a signatory of the United Nations-supported Principles for Responsible Investment ('PRI').

In the power sector, your Company's strategy is to invest predominantly in companies investing to achieve their own or government targets for emissions reductions and greener grids and eventually decarbonisation. The portfolio is oriented, therefore, toward clean generators and suppliers of electricity, and we fully expect that it will be at all times cleaner in terms of carbon emissions (tons of CO2 emitted per megawatt hour of generation) than the overall power sector (as measured by the MSCI World Utilities Index). Please see above for further detail about the Investment Manager's integration of ESG factors in its investment philosophy and approach and in the Annual Report for an outline of the Investment Manager's stewardship policy.

The Company is an investment trust with no executive directors or employees and no operating assets. Apart from the need for Directors to travel to Board meetings, the Company has no direct impact on the environment or on the communities in which it carries on its investment activities.

Modern Slavery Act 2015

The Company does not fall within the scope of the Modern Slavery Act 2015 and the Directors consider the Company's suppliers, which are typically professional advisors, to be low risk. Accordingly, a slavery and human trafficking statement has not been included.

The Board and Composition

The Board comprises four non-executive Directors, three men and one woman. In accordance with best practice, all Directors stand for re-election annually. The Board is attentive to the composition of the Board, its breadth of skills and its diversity. The Board is committed to ensuring that any vacancies arising are filled by the most qualified candidates and recognises the value of diversity in the composition of the Board.

Future prospects

The outlook for the Company is described in the Chairman's Statement above and the Investment Manager's Report above.

Section 172 Statement

Section 172 of the Companies Act 2006 requires that a Director must act in the way he/she considers, in good faith, would be most likely to promote the success of the Company for the benefit of its members (i.e. shareholders) as a whole and, in doing so, have regard (amongst other matters) to: the likely consequences of any decision in the long term; the need to foster the Company's business relationships with suppliers, customers and others; the impact of the Company's operations on the community and the environment; the desirability of the Company maintaining a reputation for high standards of business conduct; and the need to act fairly as between members of the Company.

The Board ensures that it promotes the success of the Company by engaging the Investment Manager and other specialist third-party suppliers with appropriate performance records, resources and controls in place to deliver the services that the Company requires. Their performance is monitored by the Board and its committees, which have oversight of the Company's operations. The principal supplier is the Investment Manager, in particular the investment management team responsible for managing the Company's assets in order to achieve its stated investment objectives. The Board maintains a good working relationship with the Investment Manager, which also provides administrative support and promotes the Company through its marketing and investor relations efforts. Whilst strong long-term investment performance is essential, the Board recognises that for an investment vehicle to be sustainable over the long term, both it and the Investment Manager must have regard to ethical and environmental issues that impact society at large. Environmental, social and governance considerations are fully integrated in the Investment Manager's investment process; please see above.

The Directors confirm that they have considered their duty under Section 172 when making decisions during the financial year under review. The Directors have considered this duty when making strategic decisions that impact shareholders, including the appointment of a new auditor, the dividend policy and the issue of new shares.

The Board regularly monitors the shareholder profile of the Company; please refer the Annual Report for details of communication with shareholders. The Board also widely consults with its investment advisers when considering key decisions.

The key decisions taken by the Directors during the year under review are set out below.

Strategy

The Chairman's Statement above and the Investment Manager's Report above include details of the Company's strategy, portfolio activity and performance during the year under review. This Strategic Report in the Annual Report also describes the investment strategy undertaken by the Investment Manager.

These strategic decisions contribute to the long-term success of the Company and are communicated to investors so they may make personal investment decisions.

Dividends

In accordance with the Dividend Policy approved by shareholders and explained in the Annual Report, quarterly dividends were paid in November 2020 and February, May and August 2021.

Last year, the Board maintained the quarterly dividend rate at 1.65p per share. The Board has carefully considered the dividend level and, following review of detailed income forecasts, decided to increase the quarterly rate to 1.85p.

Issue of Shares

Strong NAV performance and concerted efforts to raise appreciation of the Company's investment universe and strategy amongst a wider audience have had a beneficial effect on the rating of the Company's shares. During the year the shares often traded at a small premium to NAV and this enabled the Company to issue 5,725,000 new shares. The Board keeps the discount/premium management policy under careful review, in the interest of all shareholders. Increasing the size of the Company can benefit liquidity as well as spread costs.

On behalf of the Board

Maitland Administration Services Limited

Company Secretary

20 December, 2021

Management Report and Directors' Responsibilities Statement

Management report

Listed companies are required by the FCA's Disclosure Guidance and Transparency Rules (the "Rules") to include a management report in their Financial Statements. This information is included in the Strategic Report in the Annual Report (together with the sections of the Annual Report and Accounts incorporated by reference) and the Directors' Report in the Annual Report Therefore, a separate management report has not been included.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the Directors have elected to prepare the Financial Statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", and applicable law (United Kingdom Generally Accepted Accounting Practice ("UK GAAP")). Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing those Financial Statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the Financial Statements; and

• prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Annual Report and Accounts is published on the Investment Manager's website https://ecofininvest.com/egl and the Directors are responsible for the maintenance and integrity of the corporate and financial information about the Company included on this website. The work carried out by the Auditor does not involve consideration of the maintenance and integrity of this website and, accordingly, the Auditor accepts no responsibility for any changes that may have occurred to the Annual Report and Accounts since it was initially presented on the website.

Directors' confirmation statement

The Directors listed in the Annual Report as the persons responsible within the Company hereby confirm that, to the best of their knowledge:

a) the Financial Statements within the Annual Report and Accounts of which this statement forms a part have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

b) the Management Report, which comprises the Chairman's Statement, Investment Manager's Report, Strategic Report (including risk factors) and note 16 to the Financial Statements, includes a fair review of the development and performance of the business and position of the Company, together with the principal risks and uncertainties that it faces.

Having taken advice from the Audit Committee, the Directors consider that the Annual Report and Accounts taken as a whole is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy. The Directors have reached these conclusions through a process which is described in the Report of the Audit Committee in the Annual Report.

On behalf of the Board

David Simpson

Chairman

20 December, 2021

Statement of Comprehensive Income

The total column of the Statement of Comprehensive Income is the profit and loss account of the Company.

The revenue and capital columns are supplementary to this and are published under guidance from the AIC.

All revenue and capital returns in the above statement derive from continuing operations. No operations were acquired or discontinued during the year ended 30 September, 2021.

The Company has no other comprehensive income and therefore the net return on ordinary activities after taxation is also the total comprehensive income for the year.

The accompanying notes are an integral part of the Financial Statements.

Notes:

1. The maintenance and integrity of the Ecofin Global Utilities and Infrastructure Trust plc web site is the responsibility of the Directors; the work carried out by the Auditor does not involve consideration of these matters and, accordingly, the Auditor accepts no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site.

2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Financial Position

The Financial Statements were approved by the Board of Directors and authorised for issue on 20 December, 2021 and were signed on its behalf by:

Malcolm (Max) King

Director

The accompanying notes are an integral part of the Financial Statements.

Statement of Changes in Equity

1. The special reserve may be used, where the Board considers it appropriate, by the Company for the purposes of paying dividends to shareholders and, in particular, smoothing payments of dividends to shareholders.

The accompanying notes are an integral part of the Financial Statements.

Statement of Cash Flows

The accompanying notes are an integral part of these Financial Statements.

For the year ended 30 September, 2021

1. Accounting policies

(a) Basis of preparation

The Financial Statements have been prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice ("UK GAAP"), including the Financial Reporting Standard applicable in the U.K. and Republic of Ireland ("FRS 102") and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in October 2020. The Financial Statements are prepared in Sterling which is the functional currency of the Company and rounded to the nearest £'000. They have also been prepared on a going concern basis and approval as an investment trust has been granted by HMRC.

The Company's assets consist substantially of equity shares in companies listed on recognised stock exchanges and in most circumstances are realisable within a short timescale. The Board has set limits for borrowing and regularly reviews actual exposures and cash flow projections. The Company has prime broker borrowings to draw upon, and these borrowings are repayable on demand.

Having taken these factors into account as well as the impact of Covid-19 and having assessed the principal risks and other matters set out in the Viability Statement in the Annual Report the Directors believe that, after making enquiries, the Company has adequate resources to continue in operational existence for the foreseeable future and has the ability to meet its financial obligations as they fall due for a period of at least twelve months from the date of approval of this Report. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Further detail is included in the Directors' Report (unaudited) in the Annual Report.

Significant accounting judgements, estimates and assumptions

The preparation of financial statements requires the use of certain significant accounting judgements, estimates and assumptions which requires management to exercise its judgement in the process of applying the accounting policies and are continually evaluated. Special dividends are assessed and credited to capital or revenue according to their circumstances and are considered to require significant judgement. The Directors do not consider there to be any significant estimates within the Financial Statements.

(b) Income

Income from investments, including taxes deducted at source, is included in revenue by reference to the date on which the investment is quoted ex-dividend. Special dividends are credited to capital or revenue, according to the circumstances. The fixed returns on debt securities are recognised on a time apportionment basis so as to reflect the effective yield on the debt securities. Interest receivable from cash and short-term deposits is treated on an accruals basis.

(c) Expenses

All expenses are accounted for on an accruals basis. Expenses are charged to the revenue account except where they directly relate to the acquisition or disposal of an investment, in which case they are charged to the capital account; in addition, expenses are charged to the capital account where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect the management fee and overdraft interest have been allocated 50% to the capital account and 50% to the revenue account.

(d) Taxation

The charge for taxation is based on the profit for the year to date and takes into account, if applicable, taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred taxation is provided using the liability method on all timing differences, calculated at the rate at which it is anticipated the timing differences will reverse. Deferred tax assets are recognised only when, on the basis of available evidence, it is more likely than not that there will be taxable profits in future against which the deferred tax asset can be offset.

Due to the Company's status as an investment trust company and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.

The tax effect of different items of income/gain and expenditure/loss is allocated between capital and revenue within the Statement of Comprehensive Income on the same basis as the particular item to which it relates using the Company's effective rate of tax for the year, based on the marginal basis.

(e) Valuation of investments

For the purposes of preparing the Financial Statements, the Company has applied Sections 11 and 12 of FRS 102 in respect of financial instruments. All investments are measured initially and subsequently at fair value and transaction costs are expensed immediately. Investment transactions are accounted for on a trade date basis. The fair value of the financial instruments in the Statement of Financial Position is based on their quoted bid price at the reporting date, without deduction of the estimated future selling costs.

Changes in the fair value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Statement of Comprehensive Income as "Gains on investments held at fair value through profit or loss". Also included within this caption are transaction costs in relation to the purchase or sale of investments, including the difference between the purchase price of an investment and its bid price at the date of purchase.

(f) Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risk of change in value.

(g) Borrowings

Short-term borrowings, which comprise of prime brokerage borrowings, are recognised initially at the fair value of the consideration received, net of any issue expenses, and subsequently at amortised cost using the effective interest method. The finance costs, being the difference between the net proceeds of borrowings and the total amount of payments required to be made in respect of those borrowings, accrue evenly over the life of the borrowings and are allocated 50% to revenue and 50% to capital.

(h) Segmental reporting

The Directors are of the opinion that the Company is engaged in a single segment of business activity, being investment business. Consequently, no business segmental analysis is provided.

(i) Nature and purpose of reserves

Share premium account

The balance classified as share premium includes the premium above nominal value received by the Company on issuing shares net of issue costs.

Special reserve

The special reserve arose following court approval in November 2016 to transfer the £123,609,000 from the share premium account. This reserve is distributable and may be used, where the Board considers it appropriate, by the Company for the purposes of paying dividends to shareholders and, in particular, augmenting or smoothing payments of dividends to shareholders. There is no guarantee that the Board will in fact make use of this reserve for the purpose of the payment of dividends to shareholders. The special reserve can also be used to fund the cost of share buy-backs.

Capital reserve

Gains and losses on disposal of investments and changes in fair values of investments are transferred to the capital account. Foreign exchange differences of a capital nature are also transferred to the capital account. The capital element of the management fee and relevant finance costs are charged to this account. Any associated tax relief is also credited to this account.

Revenue reserve

This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income.

The Company's special reserve, capital reserve and revenue reserve may be distributed by way of dividend.

(j) Foreign currency

Monetary assets and liabilities and non-monetary assets held at fair value in foreign currencies are translated into Sterling at the rates of exchange ruling at the Statement of Financial Position date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the translation of foreign currencies are recognised in the revenue or capital account of the Statement of Comprehensive Income depending on the nature of the underlying item.

(k) Dividends payable

Dividends are recognised in the period in which they are paid.

2. Income

During the year to 30 September, 2021 the Company received special dividends totalling £1,281,000 (30 September, 2020: nil), all of which was recognised as capital and is included in the capital column of the Statement of Comprehensive Income.

3. Investment management fee

The Company has an agreement with Ecofin Advisors Limited for the provision of investment management services.

The management fee for the first half of the year ended 30 September, 2021 was calculated, on a quarterly basis, at 1.00% per annum of the net assets of the Company. From 1 April, 2021, the management fee was calculated at 1.00% per annum of the Company's NAV on the first £200million and 0.75% per annum of NAV thereafter, payable quarterly in arrears. The management fee is chargeable 50% to revenue and 50% to capital. During the year £1,870,000 (30 September, 2020: £1,500,000) of investment management fees were earned by the Investment Manager, with a balance of £491,000 (30 September, 2020: £391,000) being payable to Ecofin Advisors Limited at the year-end.

4. Administrative expenses

1. Full disclosure is given in the Directors' Remuneration Report in the Annual Report.

All of the expenses above include irrecoverable VAT where applicable. For the Auditor's remuneration for the statutory audit, irrecoverable VAT amounted to £6,000 (30 September, 2020: £7,000).

Advisory and legal fees include: fees in respect of sponsored research and other marketing resources, any legal fees and a substantial accrual for expenses relating to the recovery of excess taxes withheld on foreign dividends.

5. Finance costs

6. Dividends on ordinary shares

The proposed fourth interim dividend for 2021 has not been included as a liability in these Financial Statements as it was not payable until after the reporting date.

Set out below are the total dividends paid and proposed in respect of the financial period, which is the basis on which the requirements of Section 1158-1159 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year was £5,925,000 (30 September, 2020: £4,607,000).

The amount reflected above for the cost of the fourth interim dividend for 2021 is based on 100,963,423 ordinary shares, being the number of ordinary shares in issue on the ex-dividend date 28 October, 2021.

7. Taxation

(a) Analysis of charge for the period

(b) Factors affecting the tax charge for the period

The tax assessed for the year is higher than the standard rate of corporation tax rate of 19.00% (2020: 19.00%). The differences are explained as follows:

(c) Factors that may affect future tax charges

No provision for deferred tax has been made in the accounting year. The Company has not provided for deferred tax on capital gains or losses arising on the revaluation or disposal of investments as it is exempt from tax on these items because of its status as an investment trust company.

At the year-end, the Company has, for taxation purposes only, accumulated unrelieved management expenses and loan relationship deficits of £8,835,000 (30 September, 2020: £6,888,000). A deferred tax asset in respect of this has not been recognised and these expenses will only be utilised if the Company has profits chargeable to corporation tax in the future. It is considered too uncertain that the Company will generate such profits and therefore no deferred tax asset has been recognised.

8. Return per ordinary share

9. Investments

The Company received £83,261,000 (2020: £58,260,000) from investments sold in the period. The book cost of these investments when they were purchased was £70,902,000 (2020: £51,109,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.

Transaction costs

During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within losses on investments in the Statement of Comprehensive Income. The total costs were as follows:

The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document are calculated on a different basis and in line with the PRIIPs regulations.

10. Other debtors and receivables

11. Creditors: amounts falling due within one year

12. Ordinary share capital

The Company was admitted to the Main Market of the London Stock Exchange on 26 September, 2016. The total number of ordinary shares in the Company in issue immediately following admission was 91,872,247, each with equal voting rights. During the year, the Company issued 5,725,000 (2020: 3,141,176) ordinary shares with net proceeds of £10,601,000 (2020: £4,987,000).

13. Share premium account

14. Capital reserve

15. NAV per ordinary share

The NAV attributable to the ordinary shares and the NAV per ordinary share at the year-end were as follows:

16. Financial instruments and capital disclosures

Risk management policies and procedures

The investment objectives of the Company are to achieve a high, secure dividend yield on its investment portfolio and to realise long-term growth in the capital value of the portfolio for the benefit of shareholders, while taking care to preserve shareholders' capital.

The Company's financial instruments comprise:

• equity shares held in accordance with the Company's investment objective and policies;

• fixed interest securities, cash and liquid resources as well as short-term receivables and payables that arise from its operations; and

• borrowings in various currencies to finance operations.

The Company may enter into derivative contracts in order to manage the risks arising from its investment activities. As at the year-end there were no derivative contracts outstanding (2020: nil).

The Board sets out its investment policies, including its policies on gearing and diversification, in the Strategic Report beginning in the Annual Report The Board and the Company's Investment Manager consider and review the financial risks inherent in managing the Company's assets and these are detailed below.

Market price risk

The Company's investment portfolio is subject to fluctuations, volatility and the vagaries of market prices. The Directors seek to mitigate this risk by ensuring proper controls exist through the IMA for maintaining a diversified portfolio of the securities of utility and other economic infrastructure companies and ensuring that there are balances within the portfolio by geography, sub-sector and types of instrument. If the fair value of the Company's investments at year-end (see portfolio holdings in the Annual Report) had increased or decreased by 10% then it would have had an effect on the Group's capital return and equity equal to £22,092,000 (30 September, 2020: £17,915,000).

Foreign currency risk

The value of the Company's assets and the total return earned by the Company's shareholders can be significantly affected by foreign exchange movements as most of the Company's assets are denominated in currencies other than Sterling, the currency in which the Company's accounts are prepared. It is not the Company's policy to try to minimise or eliminate foreign exchange risk; over the long-term this could restrict the investment returns potentially available to Sterling-based investors in international securities. There is a risk for the NAV and shareholders, therefore, if Sterling appreciates significantly against foreign currencies. This risk is partially offset by the Company's borrowings in currencies other than Sterling.

A 10% rise or decline of Sterling against foreign currency denominated (i.e. non-Sterling) assets held at the year-end would have decreased/increased the total return and net asset value by £17,496,000 or 8.9% (30 September, 2020: £13,857,000 or 8.9%). This is considered to be a reasonable illustration based on the volatility of exchange rates during the year.

Interest rate risk

The Company is only exposed to significant interest rate risk through its borrowings with Citigroup Global Markets Limited and through the fair value of investments in fixed interest rate securities, if any.

Borrowings varied throughout the period as part of a Board endorsed policy and at year-end amounted to the equivalent of £35,873,000 (30 September, 2020: £22,757,000) in a variety of currencies. All of these borrowings were at floating rates of interest.

If this level of borrowing was maintained for the year, a 1% increase/decrease in LIBOR would decrease/increase the revenue return by £123,000 (30 September, 2020 £114,000) and decrease/increase the capital return by £123,000 (30 September, 2020: £114,000). In the event that the prime brokerage facility were to be renegotiated or terminated, the Company may not be able to finance its borrowings on as favourable terms and this risk is monitored.

The interest rates on prime brokerage borrowings varied by currency from -0.09% to 0.75% during the year ended 30 September, 2021.

Liquidity risk

The Company's assets mainly comprise readily realisable securities which can be easily sold to meet funding commitments if necessary. A liquidity analysis is prepared on at least a quarterly basis as part of the Investment Manager's report to the Board and the liquidity profile of all securities is reviewed. The Investment Manager reviews the liquidity profile of the investments continuously.

The contractual maturities of the Company's financial liabilities at 30 September, 2021 based on the earliest date on which payment can be required was as follows:

Prime brokerage borrowings are repayable on demand.

Credit risk

Credit risk is mitigated by diversifying the counterparties with which the Investment Manager conducts investment transactions. The credit standing of all counterparties is reviewed periodically with limits set on amounts due from any one broker. The Company's exposure to its counterparty for forward currency contracts, Citigroup, at 30 September, 2021 was £nil (30 September, 2020: £nil). There were no items past due or impaired.

The maximum exposure to credit risk at 30 September, 2021 and 30 September, 2020 was considered to be the same as the carrying amount of the financial assets in the Statement of Financial Position.

17. Fair value hierarchy

FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following levels:

Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date;

Level 2: inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly; and

Level 3: inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:

a) Equities and preference shares

The fair value of the Company's investments in equities and preference shares has been determined by reference to their quoted bid prices at the reporting date. Equities and preference shares included in Fair Value Level 1 are actively traded on recognised stock exchanges. Investments categorised as Level 2 are not considered to trade in active markets.

18. Analysis of changes in net debt

A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis.

19. Related party transactions and transactions with the Investment Manager

Fees payable during the year to the Directors and their interests in shares of the Company are considered to be related party transactions and are disclosed within the Directors' Remuneration Report in the Annual Report. The balance of fees due to Directors at the year-end was £nil (30 September, 2020: £nil).

The Company has an agreement with Ecofin Advisors Limited for the provision of investment management services. Details of fees earned during the year and balances outstanding at the year-end are disclosed in note 3 above.

20. Capital management policies and procedures

The Company's investment objective is to achieve a high, secure dividend yield on its portfolio and to realise long-term growth in the capital value of the portfolio for the benefit of shareholders.

The capital of the Company consists of debt, comprising prime brokerage borrowings, and equity, comprising issued capital, reserves and retained earnings. The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.

The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes:

• the planned level of gearing which takes into account the Investment Manager's views on the market;

• the level of equity shares in issue; and

• the extent to which revenue in excess of that which is required to be distributed should be retained.

The Company is not subject to any externally imposed capital requirements.

The information contained in this Annual Financial Report Announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU") and as applied in accordance with the provisions of the Companies Act 2006 (the "Act"). These comprise standards and interpretations of the International Accounting Standards ("IAS") and Standing Interpretations Committee as approved by the International Accounting Standards Committee ("IASC") that remain in effect, to the extent that IFRS have been adopted by the EU. The results for the year ended 30 September, 2021 are audited but do not constitute statutory accounts as defined in Section 434 of the Act. The statutory accounts have not yet been delivered to the Registrar of Companies. Full statutory accounts for the year ended 30 September, 2020 included an unqualified audit report and have been filed with the Registrar of Companies.

For further information, please contact:

Elspeth Dick, CFA

Ecofin Advisors Limited

Telephone: 020 7451 2929

Faith Pengelly

Maitland Administration Services Limited

Company Secretary

01245 398 950

20 DECEMBER, 2021