The strategy of the Fund is to invest in a globally diversified portfolio of best-in-class, next generation real estate and infrastructure companies that are listed in developed markets. These companies are likely to benefit from the digitalisation of economies, changing the way we work, live and play.

The Fund currently invests in 32 listed infrastructure companies operating at the intersection of real estate and technology. These companies own physical infrastructure assets that are vital to the functioning of the digital economy and are active in four specialist sub-sectors: logistics warehouses supporting e-commerce (50.9% portfolio weight), data centres (26.1% portfolio weight), mobile communication towers (18.2% portfolio weight), and networks (4.3% portfolio weight).

Over the course of the month, the NAV decreased by 4.9% (C Acc GBP). Since launch, NAV has decreased by 0.3% (C Acc GBP). In comparison, the global real estate index has increased by 4.4%*. During March, the towers sub-sector performed the best, delivering 0.3%**. The networks sub-sector also performed positively, increasing by 0.1%*. Logistics and data centres performed negatively, dropping by 2.8%** and 4.5%** respectively.

Economic uncertainty continued in March, with businesses and financial markets bracing themselves for the US administration’s planned announcement of tariffs in April. Increased tariffs are expected to have an inflationary impact on the US economy and constrain economic growth, with recessionary fears contributing to a sell-off in US equities and weighing on US treasury yields. This may impact the rate at which the Fed continues to cut interest rates. Meanwhile, the selloff in tech stocks negatively impacted the data centres sub-sector, with the “Magnificent Seven” group of tech stocks losing $2.3 trillion in value in the first quarter of 2025.

Despite the uncertain macro-economic environment, the networks sub-sector benefited from increased M&A activity in the sector. Gresham House Energy Storage (portfolio weight 2.3%), a utility-scale operational battery energy storage owner, rallied 33% in the month on the back of its peer Harmony Energy storage receiving bids from Foresight Group and Drax after it put up its portfolio for sale last year.

In the towers sub-sector, Crown Castle (portfolio weight 2.7%), a REIT that provides shared communications infrastructure in the United States, announced it has agreed to sell its fibre segment to Zayo and its small cell segment to EQT for a combined $8.5 billion in cash. This transaction will leave Crown Castle as the only pure-play tower company in the US. Steven Moskowitz, CEO of Crown Castle, said, “As we look ahead, with our expansive and capital efficient portfolio of approximately 40,000 towers across key locations in the US , which we believe is the best wireless market in the world, and greater focus on customer service and operational initiatives, we anticipate that we can generate durable and growing cash flows that will provide attractive returns to our shareholders.” Inwit (portfolio weight 2.9%), a leading Italian tower operator, delivered a strong set of full year results, and announced a new 5-year strategy, which includes a substantial investment plan and efficiency initiatives focused on land acquisitions to improve operating margins. They also announced a €400 million share buyback programme and a €200 million special dividend.

There was significant dispersion in the logistics sub-sector in March, with US names in the portfolio delivering negative returns of between -4% and -11.5%. The main cause of these drawdowns was a continued souring of investor sentiment towards the US, driven by uncertainty surrounding President Trump's trade policy. Conversely, European logistics REITs in the portfolio fared much better in March, delivering positive returns which ranged from +1.5% to +6%. The primary reason for this re-rating was an improvement in growth prospects for the economy, with German lawmakers passing a landmark spending package, including a €500bn fund to modernise the country's ageing infrastructure.

In the data centres sub-sector, SEGRO (portfolio weight 3.8%), a REIT that owns, manages and develops modern warehousing and industrial property, announced a joint venture with Pure Data Centres Group Limited, for a 56MW data centre in Park Royal, London. On the announcement, Secretary of State for the Department of Science, Innovation & Technology, the Rt. Hon. Peter Kyle MP said, "Private investment like this innovative partnership between SEGRO and Pure DC will help ensure the UK has the digital infrastructure it needs to thrive.”

The Investment Manager maintains a positive outlook on the digital infrastructure sector, primarily due to the strong performance of underlying portfolio assets. Economic uncertainty caused by US tariffs, highlights the benefits of running a diversified digital infrastructure portfolio. As such, the digital infrastructure sector remains a key investment area for any investors seeking long-term returns.

*MSCI World IMI Core Real Estate IMI GBP
**Defined as the calendar month, as opposed to the valuation month