Next generation infrastructure
Next-generation technology will drive our future and help us towards achieving new standards in sustainability and environmental protection. But technology can't function without infrastructure. So we must build next-generation infrastructure too - the cables, the data, the communications and the energy that will allow us to harness the potential of technology for human progress and sustainability. Next-generation infrastructure is at the heart of M&G's fund strategy.
Why listed infrastructure?
The 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 provides exposure to long-term structural growth trends including renewable energy, sustainable transport and digital connectivity.
Watch the following short videos to hear fund manager, Alex Araujo, discuss some of the key themes for the listed infrastructure sector over the coming months.
Why now?
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.
Every day 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…
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.
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
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
Examples of companies held in the portfolio as of 28 February 2022.
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.
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.
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.
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. The fund invests in securities that meet the ESG Criteria and Sustainability Criteria. Norms-, sector- and/or values-based exclusions apply to investments.
The benchmark of the fund is the MSCI ACWI Net Return Index. The benchmark is a comparator used solely to measure the fund’s performance and does not constrain portfolio construction. The benchmark has been chosen as it best reflects the scope of the fund’s investment policy. The fund is actively managed. The investment 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 benchmark is not an ESG benchmark and is not consistent with the ESG Criteria and Sustainability Criteria.
You can find our sustainability-related disclosures here.
See our glossary for more information on the financial terms used.
This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decisions.
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.
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.
Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.
