The fund was launched in August 2018 to invest in listed securities that derive their value from underlying real assets and targets CPI +4% over a full investment cycle. Investments can be via REITs, investment trusts or specialist companies with a focus on physical assets.
June 2019 - Latest commentary
Transparency - Summer is here and the Tory leadership contest is heating up in the UK. With the next PM yet to be announced, we are down to the last two candidates. Over in Europe there are contests for a number of posts in the European Council, including a replacement for European Commission President Jean-Claude Juncker. Meanwhile, the US Fed signalled a more dovish stance towards interest rates and there are now wide expectations for a rate cut in the near future. This was supportive for markets, with the S&P 500 and the MSCI World returning 7% and 6.6% respectively.
Real Assets performed well over the month with positive contributions coming from Infrastructure and Renewables. Positive news in the offshore wind sector helped performance with a renewable operator announcing a contract win to install capacity off the coast of New Jersey in the United States. Elsewhere a leading infrastructure fund also announced winning a contract to install 4G capacity at what will be the world’s largest offshore wind farm once complete. Property and other alternatives were detractors to performance over the month.
Activity - The fund participated in two equity raises over the month, which were both significantly oversubscribed. The proceeds are to be put towards financing new opportunities and secondary investment opportunities to increase stakes in existing assets.
Previous months’ commentaries are contained within the fund factsheets.