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 companies operating at the intersection of real estate and technology. These companies own physical assets that are vital to the functioning of the digital economy and are active across four specialist sub-sectors: e-commerce logistics (52.0% portfolio weight), data centres (23.6%), mobile communication towers (20.7%), and networks (3.0%).

Over the course of the month, the NAV of the Fund increased by 1.3% (C Acc GBP). Since launch, the NAV has increased by 3.0% (C Acc GBP), compared to a rise of 11.1% for the global real estate index*.

In January, the Federal Reserve held interest rates steady at 3.5-3.75% despite considerable political pressure for further cuts, following three 25bps cuts in 2025. The stabilisation in cost of debt provides a firmer floor for real estate valuations, particularly in the US, where digital infrastructure sectors continue to benefit from structural tailwinds. Geopolitical instability – driven by brief US-European trade tensions and developments in South America – temporarily spiked nerves, but the subsequent de-escalation later in the month calmed markets.

Data centres was the best performing sub-sector during the month, up 6.5%**. The logistics sub-sector also delivered positive results, up 1.5%**. The mobile communication towers and networks sub-sectors fell 2.7%** and 4.3%** respectively.

Performance in the data centres sector was broad based. Although Keppel DC REIT (portfolio weight 3.8%) was not the top performer in the sector in January, the company announced positive results for 2025. Distributable income rose 55% to SGD 268m, leading to a 10% increase in distribution per unit. The strong financial performance was driven by SGD 1.1bn of accretive acquisitions. Loh Hwee Long, CEO, said: “With a clear focus on hyperscale and AI-ready assets, we strengthened our portfolio and reinforced our positioning for the next phase of growth”.

In the logistics sector, Prologis (portfolio weight 7.2%) announced a solid set of results for 2025, including Funds From Operations (FFO) per share growth of 4.5% and dividend growth of 5.2%. Of particular interest to investors was an update on Prologis’ now-extensive data centre pipeline; the company has secured 5.7 GW of power, including 500 MW during Q4 25. As it relates to Prologis’ global logistics portfolio, Tim Arndt, CFO, said: “Improved customer sentiment, together with better-than-expected market conditions, reinforces our view that vacancy has peaked and rents are beginning to inflect across many markets”.

Warehouses De Pauw (portfolio weight 2.9%) also delivered strong operational results in 2025, with like-for-like rental growth of 2.3% contributing to a 2.5% increase in dividend per share. Warehouses De Pauw is on track to meet its 2027 targets and set out a new strategy to 2030 targeting earnings per share growth of at least 6% per year. Joost Uwents, CEO, said: “Supported by our top-tier credit quality and strong self-financing capacity, we extend our ambitions with #BLEND&EXTEND2030. In a world of omnipresent volatility, our focus is unchanged: delivering above-average growth with a below-average risk profile”.

Overall, the Fund Manager maintains a positive outlook on the digital infrastructure sector, primarily due to the strong performance of underlying portfolio assets. 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 calendar month, as opposed to the valuation month