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 in four specialist sub-sectors: logistics warehouses supporting e-commerce (51.7% portfolio weight), data centres (25.4% portfolio weight), mobile communication towers (18.6% portfolio weight), and networks (3.7% portfolio weight). 

Over the course of the month, the NAV increased by 3.4% (C Acc GBP). Since launch, NAV has increased by 5.6% (C Acc GBP). In comparison, the global real estate index has increased by 10.6%*. During September, networks was the best performing sub-sector, up 7.2%** on the month. This was followed by logistics, which was up 5.5%**, and data centres, which was up 2.4%**. Mobile communication towers delivered negative returns, down 3.0%**.

Performance in October was supported by easing US-China trade tensions, with late-month trade talks leading to a one-year deal that will pause steeper US tariffs and limit China’s export controls on rare earth minerals, a critical component in the AI supply chain. Although no formal trade agreement was reached, the more constructive tone marked a shift from the heightened rhetoric earlier in the month, which had triggered the largest one-day decline in US equity markets since the Liberation Day announcements in April. Meanwhile, US inflation remained softer than expected, with limited tariff impact and continued disinflation in services and rents. This allowed the Federal Reserve (Fed) to cut rates by 25 basis points to 3.75-4.00%, although Chairman of the Fed, Jerome Powell, signalled caution about further cuts, leading investors to scale back their expectations for additional easing over the next year.

In the data centres sub-sector, Digital Realty (portfolio weight 5.7%) released strong Q3 earnings, which included robust enterprise demand, along with raised guidance thanks to strong colocation bookings in Q3, the second-highest quarter on record. Andy Power, CEO and President of Digital Realty said, "Digital Realty delivered strong financial results this quarter, featuring record Core FFO per share and double-digit revenue and Adjusted EBITDA growth. These achievements are supported by a substantial backlog, providing clear visibility into 2026. Robust enterprise demand continues to drive our 0-1 megawatt plus interconnection offering, with companies expanding on PlatformDIGITAL. With five gigawatts of buildable IT capacity worldwide, we are well-positioned to meet our customers' evolving needs." This further reiterates the growth inherent to the digital infrastructure sector.

In the logistics sector, all assets delivered positive returns. Prologis (portfolio weight 7.0%), announced increased occupancy on the back of increased demand and lower supply in the market. They also had a 29.4% increase in rent renewal spreads. Hamid Moghadam, CEO and Co-Founder of Prologis, said "Our record leasing this quarter underscores the strength and resilience of our platform. With a solid pipeline, improving customer sentiment and limited new supply, the logistics market is setting up for the next inflection in rent and occupancy growth - one of the most compelling setups I've seen in 40 years."

Meanwhile, mobile communication towers delivered negative returns due to macro and sector concerns. Despite this, American Towers (portfolio weight 3.8%), released positive results confirming an increase in organic billings growth by 5.0% due to an increase in carrier spectrum acquisitions which are expected to provide a structural tailwind for tower demand, with new frequencies requiring additional site densification.

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

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