REIF wind-downs, plunging NAV discounts and “ajar” equity markets, but... Undoubtedly, 2025 was a difficult year for Infrastructure Investment Companies (IICs) and Renewable Energy Infrastructure Funds (REIFs). Investors have seen underperformance against the FTSE 100, widening NAV discounts, several delistings, managed wind-downs (MWDs) and regulatory issues in both the UK and in the US. The question for investors is: where do we go from here? On the one hand, yields for some REIFS are well over twice those of 10-year gilts, and, generally, IICs have met their dividend expectations. On the other hand, however, the NAV discounts have widened, especially for REIFs. What are the prospects for the 8 quoted IICs and the remaining 17 REIFs? Back in 2023, there were 31 quoted sector funds. While the IICs, with the notable exception of Digital 9 Infrastructure, have generally held their own of late, the opposite is the case for the REIFs, virtually all of which are currently trading at heavy discounts to NAV. The shrunken 25-strong group now commands a much-reduced market capitalisation of ca.£19.1bn, weighted 58% in favour of the IICs. During 2025, after making various adjustments for the delisted funds, the IIC subsector rose by 3.7%, while the REIF subsector was down by a depressing 17.6%. Over the same period, the FTSE 100, driven by mining, defence and bank stocks, increased by almost 22%, while the FTSE 250 was up by a more modest 9%.