Steady as a Rock: ASGI's 12.34% Yield and Infrastructure's Unshakable Edge

In a market increasingly defined by volatility, income seekers are searching for safe harbors. The abrdn Global Infrastructure Income Fund (ASGI) emerges as a compelling solution, offering a 12.34% forward dividend yield paired with the defensive resilience of infrastructure assets. With consistent monthly distributions and exposure to utilities, energy, and industrials—sectors that thrive even in economic downturns—ASGI positions itself as a rare blend of income stability and capital preservation. Here's why this fund deserves a spot in your portfolio.

The Dividend Machine: 12.34% and Counting

ASGI's 12.34% forward yield is not a flash in the pan. It's built on monthly dividends of $0.20 per share, a streak that has held steady since early 2025. This consistency stems from a disciplined managed distribution policy, which targets a 12% annual yield relative to net asset value (NAV). Unlike many high-yield funds that rely on volatile capital gains, ASGI's payouts are 85% covered by current income and realized gains, with only a small portion sourced from return of capital—a practice it manages carefully to preserve long-term sustainability.

The fund's trailing 12-month yield of 12.42% underscores its reliability, outperforming the 6.44% industry median for asset management funds. This gap isn't accidental: ASGI's focus on infrastructure—a sector inherently less cyclical—creates a buffer against market swings, as utilities and energy assets provide steady cash flows even during recessions.

Infrastructure's Defensive Armor

Infrastructure isn't just about bridges and highways; it's about assets that economies can't live without. ASGI's portfolio is anchored in:
- Utilities (33.21%): Regulated monopolies with predictable cash flows.
- Industrials (39.79%): Essential services like transportation and logistics.
- Energy (10.41%): Stable demand for power and renewables.

This mix creates a structural hedge against volatility. When markets panic, investors flee cyclical sectors, but infrastructure assets—critical to daily life—retain their value. The fund's geographic diversification (39% U.S., 20% Europe) further reduces risk, avoiding overexposure to any single region's economic fluctuations.

The Math of Resilience

Infrastructure's defensive nature is reflected in its low correlation with equities. During the 2020 pandemic crash, utilities and energy stocks held up far better than tech or consumer discretionary shares. ASGI's 5-year annualized return of 1.72% may seem modest, but it's achieved with half the volatility of the S&P 500. For income-focused investors, yield consistency matters more than headline returns.

Risks? Yes—but Manageable

No investment is risk-free. ASGI's return-of-capital component (15% of distributions) requires scrutiny. While this practice can sustain payouts during lean periods, it eats into principal over time. Investors must monitor the NAV trend to ensure it doesn't erode. Additionally, interest rate sensitivity and currency fluctuations (due to global holdings) could impact returns.

However, ASGI mitigates these risks through:
- Expense control: A 0.78% expense ratio below many peers.
- Portfolio diversification: No single sector exceeds 40%, limiting exposure to any single risk.
- Strong covenants: Infrastructure projects often have long-term contracts, shielding cash flows.

Why Act Now?

With central banks hinting at prolonged rate hikes and geopolitical tensions spiking market uncertainty, defensive income plays are essential. ASGI's 12.34% yield isn't just a number—it's a cash flow machine that can fund retirements or offset portfolio losses.

While its shares trade at a 5% discount to NAV, this creates a margin of safety for long-term holders. The fund's YTD return of 15.48% in 2025 also signals renewed investor confidence in its strategy.

Final Call: Anchor Your Portfolio in Infrastructure

ASGI isn't for thrill-seekers chasing moonshots. It's for investors who value sleep-at-night stability and predictable income. With infrastructure's inherent defensive qualities and ASGI's disciplined dividend policy, this fund offers a rare combination: high yield without excessive risk.

Act now: Secure your slice of ASGI's 12.34% yield before the market's rotation into defensive assets drives its price higher. Infrastructure isn't just a sector—it's a foundation for resilient wealth.

Investment decisions should always align with your risk tolerance and financial goals. Consult a financial advisor before making portfolio changes.