Quarterly valuation update for the energy and infrastructure sector: Sum of the Parts – Q2 2026

Key themes from Q2 2026

Bond yields stabilised following Q2 market volatility

Government bond yields experienced significant movements during the quarter, particularly following the escalation of conflict in the Middle East. However, yields finished Q2 slightly lower across the UK, Eurozone and Australian markets. In contrast, US Treasury yields remained marginally above Q1 levels as uncertainty around the timing and pace of future Federal Reserve rate cuts continued.

Listed funds continue to take action in response to NAV discounts

Discounts to NAV across listed infrastructure and renewable energy funds remained a key theme throughout the quarter. Infrastructure funds benefited from improving interest rate expectations, stronger market performance and increased corporate activity, leading to a narrowing of discounts. Within the renewables sector, several listed funds pursued asset disposals or strategic sale processes as they sought to crystallise value for shareholders, underlining continued demand for quality assets in private markets despite ongoing public market discounts.

Sum of the Parts (SOTP) supports a more granular approach to valuation

The Sum of the Parts (SOTP) methodology enables businesses and investors to assess value at a more detailed level by applying appropriate valuation approaches to individual assets, business units or revenue streams. The combined value of these components can then be aggregated to determine overall enterprise value. When applying SOTP, consideration should be given to factors such as diversification benefits, synergies, platform value, marketability and holding company impacts. Depending on the circumstances, SOTP can be used either as a primary valuation methodology or as a secondary cross-check against other valuation approaches.