Essential infrastructure for the modern world

M&G (Lux) Global Listed Infrastructure Fund


Please refer to the 
glossary for explanations of the investment terms used throughout this website.

Why infrastructure?


Infrastructure holds an important place in the fabric of modern society, serving as the backbone of the world economy. As such, we believe that the potentially reliable and growing cashflows generated by the asset class have an equally important part to play in investors’ portfolios.

Everyday we’re unknowingly reliant on infrastructure. From getting up in the morning, checking your phone and taking a shower to watching the latest boxset at the end of the day.

What is infrastructure?

Infrastructure broadly refers to assets associated with the provision of essential services for the safe and prosperous functioning of global society. These are physical assets on which we all rely every day – from the utilities that provide our power and water, to the toll roads and railways on which we travel.

These types of businesses typically enjoy the following characteristics:

  • Long-life assets governed by long-term contracts
  • Inflation-linked revenues
  • Reliable and growing cashflows

The relatively predictable nature of these cashflows is highly suited to long-term investors who are looking for the potential of a reliable and growing income stream, with their capital value supported by physical assets.

The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

What is listed infrastructure?

Investing in infrastructure has traditionally only been possible for institutional investors – such as pension schemes and sovereign wealth funds – by way of large private investments, where capital is locked away for long periods of time.

However, the asset class is increasingly accessible to individual investors, not least through the shares of infrastructure companies listed on the stock market. This is what we mean by listed infrastructure.

Not only can you invest in listed infrastructure with much smaller amounts than that required to invest in private assets, but listed investments typically offer significantly greater liquidity because the shares of larger companies are traded regularly and so can usually be bought or sold quickly and easily. Listed infrastructure can also offer investors a high degree of diversification because each company will typically generate income from a number of different assets.

You can gain access to a broad range of listed infrastructure companies by investing in a fund, which combines holdings in a number of companies into a single investment.


Where we invest

American Tower

Owns, operates and develops wireless communications and broadcast towers across the globe.
 
Supports increasing wireless penetration and mobile data usage driven by the
digital economy.
 
Operates approx. 43,000 wireless towers in the US, 76,000 in India, and 65,000 across the rest of the world.

Infrastructure class: Evolving
Infrastructure sector: Communication 

Equinix

Global business underpinning society's increasing use of and reliance on data.

Owns and operates 229 data centres which support almost 10,000 companies globally, including the likes of Amazon, Microsoft and Salesforce.

Infrastructure class: Evolving
Infrastructure sector: Communication

Naturgy

Global LNG and electricity distribution business.

LNG demand is growing worldwide as a result of natural gas's cleaner power generation profile compared to coal and oil.

The company's strategic focus on low-risk emerging market economies - particularly in Latin America - positions it to benefit from the growth in demand for both LNG and electricity in these regions.

Infrastructure class: Economic
Infrastructure sector: Utilities

Ørsted

Global leader in offshore wind, the world's fastest-growing form of renewable power generation.

Built more offshore wind farms than any other company worldwide.

Operates 26 offshore wind farms across Europe (Denmark, UK, Germany), North America (US) and Asia (Taiwan).

Infrastructure class: Economic
Infrastructure sector: Utilities

Transurban

Owns and operates urban toll road networks in Australia and the US.

Supported by strong traffic growth in the cities in which it operates, significant growth projects in its core markets, as well as inflation-linked pricing in some areas and fully dynamic tolling in others.

Infrastructure class: Economic
Infrastructure sector: Transport

We manage €40.3 bn across private, listed and infrastructure debt.*

*As at 31 December 2020


Why us?

Differentiated, Diversified

Investing beyond the traditional realm of economic infrastructure and diversifying into social and evolving infrastructure, with the assessment of environmental, social and governance (ESG) considerations integrated in the investment process

Rising Income

A high conviction fund investing in 40-50 companies that have the potential to increase dividends sustainably over the long term, often backed by inflation protected revenues

Lower Volatility

Listed infrastructure offers potential characteristics of higher dividend yield and lower volatility versus global equities


 

 

M&G (Lux) Global Listed Infrastructure Fund

The fund invests in the foundations of a modern society – from the physical assets that provide our water, energy and transportation needs, to the education and healthcare facilities that foster our society, and the communications networks that connect us in an increasingly digital world.

Our global approach seeks out opportunities in both the developed and the developing world, with a resolute focus on long-term stability and inflation-protected growth in an asset class with breadth, depth and liquidity.

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio of the fund.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

The views expressed in this document should not be taken as a recommendation, advice or forecast.

The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.