Sequoia Economic Infrastructure Income Fund Limited (LSE:SEQI) delivered a strong first half FY2026 investor update, highlighting resilient company performance, solid financial results, and continued outperformance versus high yield benchmarks. For the period ended 30 September 2025, SEQI generated an annualised NAV total return of 10.1%, increased NAV per share by 1.2%, and maintained an attractive dividend yield of 8.6%, with dividends fully cash covered at 1.01x. The fund’s diversified infrastructure credit portfolio, focused on private mid market loans backed by essential assets, remains defensively positioned with 57% in senior secured debt, construction risk below 12%, and non performing loans reduced sharply to just 0.6%. Portfolio yield to maturity remained robust at 9.7%, supported by stable interest rates and a 3.1% pull to par upside. SEQI advanced its capital allocation strategy through nearly 17 million share buybacks while sustaining a strong 350 million pound pipeline of high quality opportunities offering average gross yields around 9%. Strategic shifts included reducing exposure to US renewables and data centres in favor of higher value opportunities in the UK and Europe, exemplified by a recent 55.5 million euro senior secured loan supporting Polish solar projects. With more than a decade of consistent outperformance driven by disciplined underwriting, active portfolio management, and thematic focus on digitalisation, energy transition, and climate resilience, SEQI offers investors stable income, strong margins, defensive cash flows, and sustained total return potential.