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 (49.1 % portfolio weight), data centres (26.1% portfolio weight), mobile communication towers (19.9% portfolio weight), and networks (4.4% portfolio weight).

Over the course of the month, the NAV decreased by 1.0% (C Acc GBP). Since launch, NAV has decreased by 1.3% (C Acc GBP). In comparison, the global real estate index has increased by 2.1%¹. During April, the towers sub-sector performed the best, delivering 4.0%². The data centres sub-sector also performed positively, increasing by 1.5%², while logistics and networks performed negatively, dropping by 4.3%² and 2.4%² respectively.

Markets in April were plagued by volatility, with the threat and implementation of President Trump’s “Liberation Day” tariffs impacting stock, bond and currency markets. The month started with President Trump’s announcement of a set of tariffs that were broader and more punitive than expected. Equity markets sold off, and the stock market plummeted. The confidence shock triggered by the “Liberation Day” tariff announcements also affected the bond markets. The yield on 10-year US Treasuries reached a peak of 4.6% on 11 April, before settling at 4.2% at the end of the month. However, President Trump softened his approach by announcing a 90-day pause in the implementation of tariffs for countries that had not yet adopted retaliatory measures, and the removal of tariffs on a range of electronic products, causing markets to recoup some of their previous losses.

In the towers sub-sector, American Tower (portfolio weight 5.0%), a REIT that owns, develops and operates wireless and broadcast communications infrastructure, announced positive Q1 results. These were on the back of increased carrier activity, with American Tower delivering its highest quarter of US services revenue since 2021. In addition, American Tower announced an increase in adjusted EBITDA of $30 million, with interest expense decreasing by $5 million. SBA Communications (portfolio weight 5.3%), a REIT that owns and operates wireless infrastructure in the United States, Canada, Central America, South America, and South Africa, also announced positive earnings on the back of increased site leasing revenue range and increased adjusted EBITDA. They also announced a new $1.5 billion share repurchase scheme. Brendan Cavanagh, CEO of SBA Communications, said, “In the current uncertain macroeconomic environment, SBA stands out as a reliable, cash flow producing, high performing company. The favourable characteristics of our underlying business, the outstanding execution of our team and the strength of our balance sheet, provide us with tremendous opportunities to continue serving our customers and creating value for our shareholders.”

In the data centres sub-sector, Digital Realty (portfolio weight 5.6%), a US based provider of data centres, announced a strong leasing quarter. Digital Realty posted its third highest quarter of new bookings and announced an increase in total revenue guidance of $5.9 billion. They also raised $1.7 billion of equity capital, pushing them closer to their goal of $2.5 billion. Digital Realty’s positive results follow bullish signals from Microsoft and Meta that they are expanding their data centre capacity, with Microsoft also publishing its five digital commitments to Europe.

In the logistics sub-sector, the Fund continues to experience dispersion in performance of portfolio assets, with European names outperforming American names on the back of Trump’s “Liberation Day” tariffs. Despite weak share price performance, Prologis (portfolio weight 6.0%), a REIT that invests in logistics real estate, announced positive Q1 2025 results. Commenced leasing volume increased by 35% year-on-year, and $646 million of new developments started. Tim Ardnt, CFO of Prologis, said, “ [A] disconnected world will require more warehouse space, not less… we've built our company with the intention to not only withstand market disruptions, but to take advantage of opportunities as they arise.”

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