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 (50.3% portfolio weight), data centres (23.7% portfolio weight), mobile communication towers (21.1% portfolio weight), and networks (4.5% portfolio weight).

Over the course of the month, the NAV increased by 0.8% (C Acc GBP). Since launch, NAV has increased by 1.8% (C Acc GBP). In comparison, the global real estate index has increased by 2.9%*. During June, all sub-sectors performed positively, with the data centres sub-sector performing the best, delivering 1.2%**. The cell towers sub-sector increased by 1.1%**, with the networks and logistics increasing by 0.9%** and 0.1%** respectively.

June saw financial markets navigate a complex global landscape. The OECD reduced its global growth forecast for 2026, citing the impact of sustained tariff rates. A US-China trade deal in mid-month offered some relief to trade tensions. The broader Iran-Israel crisis initially caused market declines worldwide before a ceasefire led to a global rally.

In Europe, the ECB cut interest rates for the eighth time in a year as Eurozone inflation fell to 1.9%. The Bank of England held rates steady, emphasising a cautious approach amidst mixed UK economic data: while manufacturing and construction showed slight improvement, the overall economy continued to contract. The US Federal Reserve also maintained unchanged interest rates, with the manufacturing sector facing headwinds due to tariff uncertainty.

In the data centres sub-sector, Equinix (portfolio weight 6.3%), an American data centre operator, laid out a new strategy at a capital markets event in June. The company announced plans to increase capex in response to a growing addressable market across AI infrastructure, hybrid and multi-cloud, and networking. Consequently, management reduced near-term earnings guidance, which caused a negative reaction from shareholders. The investment manager believes this reaction was potentially overdone, considering the scale of the opportunity that the digitalisation mega trend represents.

Tritax Big Box (portfolio weight 2.7%), an owner of logistics and distribution warehouses across the UK, announced a recommended cash and shares offer for listed peer Warehouse REIT, which values the target at 114.2p per share. The Warehouse REIT portfolio of urban and last-mile logistics would complement Tritax Big Box’s traditional focus on larger warehouses. On the current terms, the deal would be earnings accretive for Tritax Big Box thanks to estimated cost synergies of £5.5 million per year.

Gresham House Energy Storage (portfolio weight 3.0%), an owner of utility-scale energy storage systems, completed a third-party equity funding of Glassenbury Battery Storage through a new equity issuance from EEI at a valuation equal to the project’s NAV. The capital will be used to finance an augmentation of the combined 50MW projects, expanding capacity from 38MWh to 110MWh. This benchmark transaction marks a crucial step forward in the fund's three-year strategic roadmap.

*MSCI World IMI Core Real Estate IMI GBP

**Defined as the calendar month, as opposed to the valuation month.