An infrastructure trust is an investment trust that owns stakes in long-lived assets: schools and hospitals built under government contracts, toll roads, energy networks, wind and solar farms. The income comes from payments set by contracts or regulators, often for decades, and many include inflation linkage, where payments rise with an inflation index each year. Some are RPI-linked, tied to the Retail Prices Index, which is due to be brought into line with the lower-running CPIH from 2030.
Renewables trusts earn from selling power as well as from subsidies, so part of their income moves with energy prices. These trusts are valued by discounting future cash flows, so when interest rates rise their valuations fall and their shares have often slipped to discounts to NAV. Contracts also end: when one expires, the asset may be handed back and that income stops. In the app these trusts are tracked like shares and their dividends come through, though some arrive with no sector.
Inflation linkage protects the payments. It doesn't protect the share price when rates rise.
Educational content only. It is not personal financial advice.