For Investment Professionals only

M&G Global Listed Infrastructure Fund

The quest for rising income from essential assets
Alex Araujo, Fund Manager

“Global listed infrastructure provides a compelling proposition for long-term investors looking to diversify. The asset class benefits from characteristics of higher dividend yield and lower volatility compared to global equities and our investment universe offers a wide array of attractive opportunities to invest in dividend growers.”

Reasons to consider investing in listed infrastructure

  • Potential for reliable and growing cashflows generated by critical physical infrastructure – long-term assets which are essential for the functioning of global society.
  • Listed infrastructure has typically offered characteristics of higher dividend yield and lower volatility compared to global equities, as well as exposure to inflation-linked revenue streams.
  • Listed infrastructure provides exposure to long-term structural growth trends including renewable energy, clean transport and digital connectivity.

M&G's differentiated approach

  • At least 80% of the fund is invested in the shares of infrastructure companies and investment trusts of any size and from anywhere in the world, including emerging markets. The fund usually holds shares in fewer than 50 companies.
  • Investing beyond the traditional realm of economic infrastructure (utilities, energy and transport) and diversifying into social infrastructure (health, education and civic); growth opportunities in evolving infrastructure (communication, transactional and royalty).
  • A sustainable approach where the assessment of environmental, social and governance (ESG) considerations is integrated in the investment process.

Source: M&G, 2023. *Expected annual dividend increase, for illustrative purposes only

Why now?

  • In an environment of uncertainty, we believe listed infrastructure could provide reliable and sustainable long-term growth.
  • Listed infrastructure has the potential to provide inflation protection by way of index-linked revenue, as well as inflation-beating income growth from our growth-focused approach.
  • The current market volatility triggered by perceived interest-rate sensitivity is creating buying opportunities, in our view, for long-term growth businesses at attractive prices.

Infrastructure assets – an essential part of your day

  • Assets on which we rely in our everyday lives – from the moment we wake up in the morning to the moment we fall asleep at night.
  • Both traditional infrastructure assets and assets that support the increasingly digital world that we live in.
  • Opportunities across geographies, including emerging markets.

Fund facts

31 December 2023 £525.35million
Fund launch date 5 October 2017
Benchmark* MSCI ACWI Index
Sector IA Infrastructure sector

Source of fund facts: M&G as at 31.12.23.

*The benchmark is a target which the fund seeks to outperform. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction. The fund is actively managed. The fund manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.

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.

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.

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

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.

M&G Global Listed Infrastructure Fund

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For financial advisers only. Not for onward distribution. No other persons should rely on any information contained within. This financial promotion is issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority in the UK and provides ISAs and other investment products. The company's registered office is 10 Fenchurch Avenue, London EC3M 5AG. Registered in England and Wales. Registered Number 90776.