Infrastructure matters to people and businesses everywhere, every day. From roads and railways to power plants and communication networks across the globe – a well‑functioning, modern infrastructure system serves as the foundation of economic development and enhances the quality of life.
Why infrastructure now?
$15 trillion
Maintaining and developing infrastructure that is fit for the future requires investment. By 2040, the world will require an estimated $15 trillion to fulfil basic infrastructure needs¹.
A growing asset class
Amid the growing demand for infrastructure assets, listed infrastructure has gained recognition as a distinct asset class, attracting institutional and individual investors with the potential of reliable income and long-term growth from strategic assets exposed to powerful structural trends.
Evolving
With data centres and towers integral to the digital revolution and new power sources and grid networks essential for energy security and decarbonisation, infrastructure is arguably at the heart of the multi-decade trends that could reshape the global economy in the coming years.
¹ Amin Mohseni-Cheraghlou and Naomi Aladekoba, ‘The global infrastructure financing gap: Where sovereign wealth funds and pension funds can play a role’, (atlanticcouncil.org), October 2022.
"Listed Infrastructure provides the opportunity to participate in the structural growth and dividend generation of companies delivering essential socio-economic services. Infrastructure is essential for life and increasingly important for the environment. The companies we invest in are helping the world decarbonise, digitise and industrialise. The noncyclical nature of the earnings from these companies generates dependable cash flows and dividends that can compound and protect against inflation. Infrastructure is essential for life, beneficial for the environment and additive to investment portfolios."
Alex Araujo
Fund Manager
Discover the M&G (Lux) Global Listed Infrastructure Fund
Learn more
Why this fund?
A growing asset class
A growth-focused approach, investing in securities that meet ESG criteria and applying an exclusionary approach.
Focus on dividend growth
Investing in companies that increase their dividends can provide inflation protection and real growing income.
Powerful thematic tailwinds
The asset class is exposed to different structural growth trends, such as: demographics, decarbonisation and digitisation.
Where is the fund invested?
The fund seeks to provide access to the full breadth of the asset class globally, from the traditional realm of utilities to modern elements such as digital networks. We divide the investment universe into three categories: Economic, Social and Evolving.
The commonality being the asset-backed characteristic, but there is differentiation in each category's growth, leverage, and dividend profiles.
The fund seeks to generate equity-like returns at bond valuations with a defensive tilt given lower macro correlation than the broader market and a focus on quality businesses.
Our philosophy is grounded in three core principles, which remain the foundation of the fund’s relative outperformance* since inception:
Ownership of real physical assets
Striving to generate growing dividends
Positive ESG tilt. Exclusionary approach
*Past performance is not a guide to future performance.
Investment policy
The Fund aims to provide:
- a combination of capital growth and income to deliver a higher return than the global equities market over any five-year period; and
- an income distribution that increases every year in US dollar terms.
The Fund seeks to achieve its financial objectives while applying ESG Criteria.
At least 80% of the Fund is invested in the shares and convertible bonds of infrastructure companies and investment trusts of any size and from anywhere in the world, including emerging markets. The Fund may invest in China A-Shares via the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect. The Fund usually holds shares in fewer than 50 companies. The Fund invests in securities that meet the ESG Criteria, applying an Exclusionary Approach, that are SDG-contributing with a Positive ESG Tilt as described in the precontractual annex to this Fund Supplement. The fund’s recommended holding period is 5 years.
The main risks associated with this fund:
- 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.
- Convertibles are subject to the risks associated with both bonds and company shares, and to risks specific to the asset class. Their value may change significantly depending on economic and interest rate conditions, the creditworthiness of the issuer and the performance of the underlying company shares. In addition, issuers of convertibles may fail to meet payment obligations and their credit ratings may be downgraded. Convertibles may also be harder to sell than the underlying company shares.
- Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
- 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.
Please note, investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company, as these are only the underlying assets owned by the fund.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
Sustainability information:
The Fund promotes Environmental/Social (E/S) characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 40% of sustainable investments.
The Fund’s sustainability information are available to investors on the Fund page of the M&G website.