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 is currently comprised of 31 investments (25 equity and 6 debt) across a range of specialist digital infrastructure sub-sectors. Current exposure is diversified across logistics (42.7% of the portfolio), communication towers (27.5%) and data centres (22.1%). The Fund may also invest in network infrastructure, although it had no exposure to this sub-sector at the period end. Overall, equity investments represented 76.9% of the portfolio and debt investments 15.4%.

Over the course of the month, the NAV of the Fund decreased by 1.4% (C Acc GBP), compared to the global real estate index¹, which decreased by 2.8%. Since launch, the NAV has increased by 10.3% (C Acc GBP), compared to a rise of 19.4% for the index¹. Data centres was the top performing sub-sector, up 1.4%, followed by communication towers, up 0.7%. Logistics performed negatively, down 4.1%. The debt basket was up 0.2%.

Markets improved in August, with the S&P 500 touching a fresh all-time high before easing slightly into month-end as US-Iran tensions resurfaced. Oil stayed elevated, holding in the mid-$80s to low-$90s a barrel on tight Strait of Hormuz flows and strong summer demand. Second-quarter earnings were strong, with most S&P 500 companies beating both EPS and revenue expectations, driving the strongest earnings growth rate since 2021. AI names were fragmented, with some large-cap names gaining while others declined, and semiconductor stocks sold off sharply in the back half of the month. Financials, tech, and energy led sector gains, while utilities, industrials, and consumer staples lagged. Gains were broad-based internationally too, with Japan and emerging Asia both posting solid returns and extending the month's resilience.

Companies across the sub-sectors which the Fund has exposure to reported positive results in August.

In the data centres sub-sector, NEXTDC (portfolio weight 2.6%) reported full-year results, which saw total revenue increase by 16% to A$497mn and underlying EBITDA rise by 15% to A$249mn. More importantly, NEXTDC’s data centre capacity commitments grew to 740MW, of which only 175MW is currently being billed, with the difference representing a significant source of future profits. The company raised almost A$10bn of new capital during the year, including a A$1.5bn equity raise in which the Fund Manager participated.

In the communication towers sub-sector, SBA Communications (portfolio weight 2.4%) also reported good results, beating sell-side expectations for the second quarter and raising full-year guidance. Following a recent credit rating upgrade from S&P, the company issued its first investment grade bond offering, $3.5bn of senior unsecured notes. CEO Brendan Cavanagh said, “With our enhanced liquidity and investment grade balance sheet, we expect to continue growing our dividend at the highest growth rate in the industry while investing in our portfolio and incremental shareholder returns through stock repurchases”.

In the logistics sub-sector, Tritax Big Box (portfolio weight 4.3%) raised approximately £350mn of equity capital, equivalent to almost 10% of issued share capital. The raise was priced at 164p, or a 12% discount to NAV. The Fund Manager participated in the raise. The proceeds will be used to “unlock the next wave of data centre growth and returns”, and to that end Tritax has secured 235MW of additional power for two new data centres, which combined with Manor Farm (147MW) and Chelmsford (125MW) mean that the company is planning to deliver more than 0.5GW of data centre developments by 2030/31.

Tritax also delivered a strong set of results for the first half of 2026, with like-for-like rental growth of 5% driving a 7% increase in earnings per share and a 4% increase in the company’s dividend. According to Chair Aubrey Adams, “Combined with the proposed equity Issue… the enhanced data centre opportunity gives us the ambition to grow adjusted EPS by 65% by 2030/2031”.

M&A activity continued into August, with the Board of SEGRO recommending Prologis’s “best and final” cash and stock offer valuing the company at 1,031.7p per share. SEGRO’s shareholders will now vote on the deal, which if approved is likely to take effect during the first half of 2027.

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.

¹MSCI World IMI Core Real Estate IMI GBP