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 (49.6% portfolio weight), data centres (25.8%), mobile communication towers (20.9%), and networks (2.7%).

Over the course of the month, the NAV of the Fund decreased by 8.9% (C Acc GBP). Since launch, the NAV has increased by 0.4% (C Acc GBP), compared to a rise of 12.3% for the global real estate index*.

Markets retreated in March, with the decline almost entirely driven by newsflow related to the ongoing conflict in the Middle East. Concerns that the conflict will lead to higher inflation led to a sharp rise in interest rates, which affected interest rate-sensitive sectors like real estate more than others. At the front end of the yield curve expectations adjusted considerably, with markets now pricing in no change to the Fed Funds Rate in 2026, compared to an expectation of three 25 basis point cuts at the start of the year. The yield on the 10-year US government bond rose by 30 basis points to 4.3%, peaking at 4.4% intra-month.

All sub sectors delivered negative returns during the month. The networks sub-sector held up the best, although still fell by 1.2%. The data centres, logistics and mobile communication towers sub sectors fell by 4.1%, 10.5% and 11.3% respectively.

Returns for the mobile communication towers sub sector were dragged down by INWIT (portfolio weight 2.2%), an Italian tower operator, which fell by 24%. The cause of the decline was news that INWIT’s two largest customers (i.e. mobile network operators, or MNOs) , Fastweb + Vodafone and TIM, are considering leaving INWIT’s tower network. The MNOs have argued that INWIT’s prices are too high, restricting their ability to invest in their mobile networks. INWIT has countered that it believes its prices are in line with peers. The outcome of the dispute ultimately hinges on whether, or when, the MNOs can exit their long-term contracts with INWIT, which is a matter for the courts to determine over the coming months.

Separately, and in contrast, Helios Towers (portfolio weight 3.0%), which operates almost 15,000 towers across Africa and the Middle East, reported an excellent set of results for 2025, with recurring free cash flow increasing by more than 40% to USD 208 million. After several years of inorganic growth, Helios Towers has shifted its focus to organic growth and shareholder distributions, including both share buybacks and dividends. CEO Tom Greenwood said: “We look ahead to a strong year in 2026, which is seeing strong structural demand trends, and guidance demonstrating meaningful progress towards our IMPACT 2030 targets, with continued growth, cash flow generation and shareholder distributions, which have already begun.” This further reiterates the growth inherent to the digital infrastructure sector.

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