M&G launches global listed infrastructure fund
M&G Investments, the London-headquartered asset manager, has launched a Luxembourg SICAV that will invest globally in infrastructure stocks, which it says will give investors exposure to earnings that are often inflation-protected.
The new fund will target both rising income streams and long-term capital appreciation, according to the company.
It will invest in companies that own or control critical physical infrastructure, which supports global economic growth, and in businesses whose assets underpin the day-to-day functioning of society. Revenues from these types of businesses are often inflation protected, and the stable and growing cash flows they generate are typically available in the stock market with a higher yield and lower volatility compared to global equities.
Managed by fund manager Alex Araujo, the fund will provide diversification by geography and by infrastructure class, but the fund manager goes an important step further. The traditional, core infrastructure definition is augmented by modern elements supporting an increasingly digital and connected world.
“The fund will invest in companies which own and operate the infrastructure we have come to rely upon in daily life, including utilities, energy, and transport infrastructure,” said Alex Araujo.
The fund is managed by M & G’s Equity Income team led by Stuart Rhodes, manager of the M & G Global Dividend fund. At the end of June, M&G was looking after more than £281.5bn (US$378.8bn) on behalf of investors.