The vast majority of pension funds are invested in managed funds which generally consist of a mixture of equities, bonds, property and cash. There are however more and more alternative funds now available which offer investors something different. Included amongst these are the various Green Energy funds, commodites funds and specific single asset funds such as gold or oil funds. Another available alternative is a fund which is based on infrastructure.
Infrastructure assets are crucial for improving living standards, sustaining prosperity and supporting economic growth through increased productivity. We can see in Ireland how the new motorway network has reduced travelling times between the major cities and more importantly made these journeys safer. This in turn should result in improved productivity. New trains have made railway journeys more comfortable and have increased capacity on certain lines. Infrastructure is vital in any economy and needs to be continually developed.
An infrastructure fund is one which invests in a range of companies whose main business is the provision of infrastructure around the world. This includes companies who manage and maintain bridges, railways, airports, water utilities, energy facilities and so on. Infrastructure can offer investors inflation protected income and sustainable growth over the long term.
The income compenent benefits from assets providing essential services, enjoying high barriers to entry and strong pricing power. Growth is reflected by structural drivers like urbanisation, globalisation mobility and energy security. Global listed infrastructure has shown over the last 15 years that these attributes can translate to higher returns with lower risk than normal equities.
The First State Global Infrastructure Fund is available from AXA for investment and pension business. It is a fund which offers investors an alternative investment strategy from ordinary equity or managed funds. As all of the companies are listed on recognised Stock exchanges, liquidity is not an issue when investing in this fund.
Download further information for the Global Listed Infrastructure Fund