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.
April 2019 - Latest commentary
Transparency - April proved to be a strong month across equity markets despite lower global growth forecasts. The Eurostoxx 50 and Nikkei 225 indices led the charge but strong performance also came from the FTSE, which reached a 6-month high, and S&P Index which hit an all-time high. In the US, the Fed has kept rates on hold, resisting pressure from the government to cut rates, and in the UK, parliamentary deadlock over Brexit continues.
Real Assets performed well over the month with positive contributions coming from infrastructure, renewables, property and other alternatives. Within renewables, the largest positive contributor was a corporate activity in the form of the acquisition of a French wind farm as well as positive progress on the first unsubsidised farm in the UK. In other areas, UK specialist property remained an attractive area for investors and sentiment for the aircraft leasing sector showed signs of recovery.
The fund participated in two capital raises in April, one of which subsequently increased in size after significant investor demand. The gross proceeds of the fund raises are being used to fund acquisitions of energy efficiency assets and music catalogues.
Previous months’ commentaries are contained within the fund factsheets.