There are four infrastructure funds available right now

The sell-off of infrastructure funds has presented an excellent opportunity for investors seeking income

Listed infrastructure funds are becoming more and more appealing. Higher gilt yields, which have increased as a result of concerns about a short-term shock to energy prices, have hurt their shares. The weaker job market, however, keeps the medium-term disinflationary narrative intact, and potential yields of 47% for the infrastructure funds are far more alluring than gilts themselves, which run the risk of a fiscal crisis.

The infrastructure funds continue to function well, in contrast to the renewable-energy trusts that are having trouble selling assets to pay off debt or finance dividends. Public-private partnership (PPP) projects have given way to investments that are somewhat riskier but also yield higher returns. Net asset values (NAVs) are rising, asset sales are facilitating both new investment and share buybacks, and dividends are both sustainable and growing.

Infrastructure funds at a discount to purchase now.

When 3i Infrastructure (LSE: 3IN) wrote down its investment in the German internet provider DNS:NET to zero last year, it experienced a rare setback that reduced its net asset value by £200 million. In order to finance its roll-out strategy, DNS:NET's business plan depended on new debt and equity, and 3IN was obviously unprepared to take over if others weren't willing to make additional investments. But sentiment was rekindled when TCR, the biggest independent lessor of airport ground equipment, was later sold for 22% more than its previous valuation.

Problems with BFIA today. TCR, which made up 26% of NAV, was 3IN's biggest investment. A new investment (Lefdal Mine Datacenter in Norway) and debt repayment have been made with the proceeds, leaving 200 million in net cash for share buybacks or other investments. With a dividend yield of 3.7%, the shares are currently trading at an 11% discount to NAV.

Following a foolish attempt to merge with the Renewables Infrastructure Group, another trust managed by the same manager, sentiment toward HICL Infrastructure (LSE: HICL) has not improved. The shares still yield 6.5% and trade at a 19% discount to NAV.

HICL recently sold its French A63 motorway stake for 311 million, which is 21% more than book value. Its choice to reinvest £52 million to boost its ownership of Cross London Trains, which owns the rolling stock for the Thameslink network, instead of using it all to repurchase shares has drawn criticism from some analysts. Nonetheless, this appears to be a low-risk investment in a well-known asset at a discounted price, and there is still plenty of room for buybacks with the available funds.

Despite the strong results reported by International Public Partnerships (LSE: INPP), the shares continue to yield 6.4 percent and trade at a 12 percent discount. Although INPP has a solid track record in major projects like the Tideway super sewer beneath the River Thames, Cadent gas distribution, and North Sea energy-transmission assets, investors may be alarmed by its 254 million commitment to invest in the Sizewell C nuclear power station.

With a 9% discount and a yield of 3.7%, Pantheon Infrastructure (LSE: PINT) seems more costly than its competitors. Nevertheless, its investment return of more than 14 percent in 2025 was the highest. The trust made a new investment in Intersect, which was swiftly followed by the sale of some of Intersect's assets to Alphabet. This was the trust's first disposal since listing in 2021. It also sold its share in the US power company Calpine. For the first time, the maturing portfolio paid the dividend in full.