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Infrastructure matters to people and businesses everywhere, every day. From roads and railways to power plants and communication networks across the globe – we believe 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 invest with M&G?
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.
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 listed infrastructure strategy.
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 value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested.
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, clean transport and digital connectivity.
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.
Watch the following short video to hear fund manager, Alex Araujo, discuss some of the key themes for the listed infrastructure sector over the coming months.
Why now?
- We believe listed infrastructure has the potential to provide reliable and sustainability-focused long-term growth
- Companies are paying increasing attention to ESG credentials in their efforts to become better businesses, both from a financial perspective as well as looking to ensure sustainability
- Fiscal expansion in the wake of COVID-19, including higher spending on infrastructure, may provide a favourable backdrop for the asset class
Investing aligned with Sustainable Development Goals (SDGs)
As infrastructure plays such a vital role in society, we believe many of the critical infrastructure assets in which we invest (via listed securities) can support a number of the UN’s Sustainable Development Goals (SDGs).
“Infrastructure, in particular, underpins all of the SDGs. It plays a critical role in society because it can influence development far into the future –both positively and negatively. This is why it is vital to understand the influence that infrastructure systems have on the SDGs.”
Source: ‘Infrastructure: Underpinning sustainable development’, The United Nations Office for Project Services (UNOPS), 2018
17 Sustainable Development Goals (SDGs)
Portfolio threshold: At least 70% of AUM aligned to SDGs
Source: M&G Investments
*While we support the UN SDGs, we are not associated with the UN and our funds are not endorsed by them.
Source: M&G Revenue mapping (per 26 August 2022)
The information provided should not be considered a recommendation to purchase or sell any particular security.
Why now?
- We believe listed infrastructure has the potential to provide reliable and sustainable long-term growth.
- Companies are paying increasing attention to ESG in their efforts to become better businesses, both from a financial perspective as well as ensuring sustainability.
- Fiscal expansion in the wake of COVID-19, including higher spending on infrastructure, may provide a favourable backdrop for the asset class.
The main risks that could affect performance are set out below:
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 views expressed in this document should not be taken as a recommendation, advice or forecast.
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.
You can find Fund’s sustainability-related disclosures here.
See our glossary for more information on the financial terms used.
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.
This website is intended for regulated financial institution, intermediary or distributor, including, where applicable, a holder of a relevant license under the Securities and Futures Act 2001 (Cap. 289) of Singapore. The information on these pages should not be used or relied upon by the public of Singapore or any other type of investor from any other jurisdiction.
This website is general in nature and is for information purposes only. The website is issued by M&G Investments (Singapore) Pte. Ltd (UEN 201131425R) and has not been reviewed by the Monetary Authority of Singapore.