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 (48.6% portfolio weight), data centres (24.8% portfolio weight), mobile communication towers (20.9% portfolio weight), and networks (4.5% portfolio weight).

Over the course of the month, the NAV increased by 1.8% (C Acc GBP). Since launch, NAV has increased by 3.6% (C Acc GBP). In comparison, the global real estate index has increased by 5.5%*. During July, data centres were the best performing sector, up 3.6%** on the month. Logistics and networks also performed positively, up 0.9%** and 0.8%** respectively. Towers delivered negative returns, down 0.5%**.

In July, investor sentiment improved as markets gained more clarity regarding future US trade and fiscal policy. The announcement by the Trump administration of several trade agreements brought more clarity to the future policy backdrop and supported risk on sentiment in markets. At the beginning of the month, the US agreed a new trade deal with Vietnam, leaving US tariffs at 20%. This deal was followed by the announcement of agreements with Japan and the European Union (EU) towards the end of the month, which left most imports subject to a 15% tariff rate, including automobiles. Although these new tariff rates are significantly higher than the average rate of 2.4% before Trump’s presidency, equity markets responded positively to the fact that the new agreements reduce the risk of an escalating trade war. Meanwhile, the US June consumer price index (CPI) report was slightly softer than expected, with headline CPI climbing 2.7% and core CPI rising 2.9% on a year-on-year basis.

The investment manager remains positive about the digital infrastructure sector, supported by the strong performance of portfolio assets.

Digital Realty (portfolio weight 5.9%), a global provider of data centres, announced a record $90 million in bookings across 0-1 megawatt plus interconnection in Q2 2025. This surpassed Digital Realty’s previous all-time high by 18%, with growth driven by broad-based demand for connectivity. Andy Power, President and CEO of Digital Realty, said of the announcement, “Record bookings in our 0–1 megawatt plus interconnection product set underscore the strength of our full spectrum strategy and the breadth of the growing demand for digital infrastructure. Our inaugural US Hyperscale Data Center Fund is oversubscribed, providing us the capital necessary to serve our customers’ growing requirements and to extend Digital Realty’s runway for growth.”

In the logistics subsector, Prologis (portfolio weight 6.3%), an American provider of logistics real estate, delivered a solid set of Q2 results. Management pointed to a historically high leasing pipeline, with potential tenants “ready to act” as a robust economy post-Liberation Day is allowing inventory building in order to protect against future tariff risk. Prologis announced an increase in cash leasing spreads of 34.8%.

On the other hand, Catena (portfolio weight 2.5%), a Swedish real estate company that specialises in the development and management of logistics properties, was the weakest performing logistics name in the portfolio. This was primarily due to a slowdown in like-for-like rental growth, which is driven by indexation, as inflation slows in Sweden. That said, Catena’s portfolio is proving more resilient than the wider Swedish market, with vacancies only increasing slightly in H1. This divergence in performance between different geographies in the portfolio reinforces the benefits of running a diversified strategy.

The Investment 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 the calendar month, as opposed to the valuation month.