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abrdn Global Infrastructure Income Fund Proposes Transition to a Perpetual Fund Structure

In a significant move, the Board of Trustees for the abrdn Global Infrastructure Income Fund (NYSE: ASGI) has announced a proposal aimed at transforming the fund's operational structure by eliminating its set term limit. Since its inception in 2020, ASGI has operated with a defined term of 15 years, which is scheduled to conclude in July 2035. However, the new proposal, subject to shareholder approval, seeks to convert the fund into a perpetual entity.

This transition is expected to align the fund more closely with its long-term investment strategies while providing increased flexibility in portfolio management. By operating as a perpetual fund, ASGI aims to capitalize on the long-dated nature of infrastructure assets, which are often inaccessible in public markets. This maneuver is anticipated to enhance the fund's potential for sustainable income generation, thus catering to the liquidity needs of its shareholders through secondary-market trading.

The Board is backed by abrdn Inc. and abrdn Investments Limited, the fund's advising executives, who unanimously believe that converting the fund to a perpetual model aligns better with the long-term nature of infrastructure investments and fosters greater value creation for investors. This strategy could also yield further economic efficiencies, allowing shareholders to reap the benefits from the fund’s growth.

If approved, shareholders will see modifications to the investment advisory agreement with abrdn Inc., which will include the introduction of 'breakpoints' into the advisory fee structure. Current levels indicate that these adjustments would reduce net investment advisory fees and may further save costs as the fund's asset base expands.

Shareholders of record as of March 16, 2026, will have the opportunity to cast their votes on this pivotal proposal during a special meeting set for May 27, 2026. The fund will prepare a detailed proxy statement for the U.S. Securities and Exchange Commission (SEC) which will elaborate on the proposal, highlighting both the prospective advantages and risks associated with the transition.

Importance of the Proposal

The proposed transition to a perpetual fund structure is noteworthy, as it aims to reflect a natural evolution in investment strategies that cater to the long-term horizon of infrastructure investments. A crucial benefit of a perpetual fund is the potential for consistent and stable income generation, aligning with the objectives of many long-term investors. Furthermore, this structural enhancement can facilitate improved management of private infrastructure investments, a key characteristic of ASGI that differentiates it in the market.

The Board has expressed confidence that this alteration will create substantial value for all stakeholders involved. Shareholders are encouraged to closely review the forthcoming proxy statement once it is released, as it will contain comprehensive insights on the proposed term amendment and its implications for long-term investors.

In conclusion, the decision to potentially remove the term structure echoes a strategic pivot towards ensuring sustainability and adaptability in the face of changing market dynamics. By moving forward with this proposal, the abrdn Global Infrastructure Income Fund is positioning itself for a robust future, poised to meet the investment needs of its shareholder base while capitalizing on long-term infrastructure opportunities.