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: logistics (51.7% portfolio weight), data centres (24.5%), mobile communication towers (21.0%), and networks (2.4%).

Over the course of the month, the NAV of the Fund increased by 7.0% (C Acc GBP). Since launch, the NAV has increased by 10.2% (C Acc GBP), compared to a rise of 21.1% for the global real estate index*.

In February the Federal Reserve, Bank of England and European Central Bank held rates steady as inflation nears target. Geopolitical instability continued, shifting from South America to the Middle East, which raised demand for safe-haven assets. AI-related developments negatively impacted certain sectors perceived to be more at risk of disruption. Market commentators coined a new ‘HALO’ trade to characterise investments in Heavy Assets with a Low risk of Obsolescence, for example real estate and infrastructure. The Fund Manager took this a step further with the ‘PACE’ trade – Physical Assets, Compounding Earners – to emphasise that an investment in real assets not only offers potential protection against AI-related disruption, but may also offer an attractive, growing income over time.

Mobile communication towers was the best performing sub-sector during the month, up 12.6%. The data centres and logistics sub-sectors also delivered positive results, up 10.8% and 6.0%respective. The networks sub-sector fell 1.9%.

Equinix (portfolio weight 7.3%), which operates almost 300 data centres around the world, reported a strong set of results for 2025, with both adjusted funds from operations (AFFO) and dividend per share up 10%. The market responded positively, in particular because Equinix provided better guidance for 2026 than was expected. CFO Keith Taylor said: “From my perspective, Equinix delivered its best quarter ever, by far” and CEO Adaire Fox-Martin said: “Demand for our solutions has never been higher, as demonstrated by accelerated growth in both bookings and recurring revenue, and we are confident in our plan to deliver robust revenue and AFFO per share growth in 2026”.

Segro portfolio weight 4.6%) and Tritax Big Box (portfolio weight 2.8%), two UK-listed logistics REITs with growing data centre portfolios, also reported good full-year results. Segro delivered like-for-like net rental income growth of 6.0%, in part due to a healthy 36% uplift achieved across £66mn of rent reviews and renewals. Development capex is expected to increase to about £500 million next year thanks to a pick up in activity in the logistics sector. CEO David Sleath said: “… momentum has continued into 2026 and we take confidence from the increased enquiry levels and active negotiations that we are having with a diverse range of industrial, logistics and data centre occupiers for both new and existing space”. Tritax Big Box also enjoyed a solid 2025, with the value of its property portfolio increasing by more than 20% following the acquisition of a portfolio of assets from Blackstone during the year. Looking ahead, management pointed to the significant reversionary potential of the logistics portfolio, most of which can be captured within the next three years. An announcement is also expected in March on whether planning permission for the company’s first data centre at Manor Farm near Heathrow will be granted.

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